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Frankly speaking, I have experienced these four heart-wrenching moments. If you follow the literal meaning of the title, the worst of the four must be deadly. The principal is gone, so what can I trade with?
My trading philosophy is to survive the market first, then consider making money, and make money slowly. In fact, these four problems are simply one problem, that is, there is no trading system. For me, no system does not trade. Let's analyze these questions below:
1. Buy at the top. Sell at lows.
Obviously, this is the result of chasing up and killing down. So why does this kind of trading behavior of chasing ups and downs occur? The main problem is that there is no trading system that fits the market, and the price has risen sharply, but I don’t have a set of criteria for judging. , is the beginning of the trend, development, outbreak or weakening stage, etc., and there is no set of effective standards, but only seeing the price rise or fall, the thinking stays in the market only with the eyes, without in-depth analysis What is the reason for the rise and fall of this wave. At this time, traders do not rely on trading analysis to trade but rely on emotion to trade. The rising price makes the traders who have not entered the market regret. Therefore, when the price continues to set a new record high, tragedy happens. .
2. Reverse as soon as the loss is stopped.
As soon as the loss is stopped, it is reversed, which involves two different trading thinking. First, enter the market in a hurry before the trend is confirmed. This involves the issue of the trend. It is necessary to determine the trend, discover the trend, and judge whether the trend has reversed. The first thing to solve is what is your standard for measuring and judging the trend. With the standard, there is a basis for judging whether the trend is reversed. When the price has not yet determined whether the market has reversed, enter the market, it is possible to catch a wave of better entry points (traders on the left), and more likely to stop losses frequently, increasing their own trial and error costs. Second, the stop loss is unreasonable. The problem of stop loss involves the entry point and fund management. Generally, a good transaction can make your stop loss very small and the pressure on holding positions becomes very small.
3. Once you die, you will go against the trend and go unilaterally.
For the first three situations, it is more a matter of trading strategy, while carrying orders is a matter of trading philosophy. This is a deadly operation method. The error in the trading concept makes the trader's understanding of the market deviate, or he is dazzled by the small profits in the early stage. Is there really room for maneuver in carrying orders?
The first result: carrying orders and encountering a unilateral market, the result is a liquidation. Needless to say, the market is authoritarian in all kinds of dissatisfaction.
The second result: carrying orders without encountering a unilateral market, and finally exiting the market with a small profit. Although he was able to survive by luck, he wasted a lot of time holding positions in the market, and the utilization rate of funds was extremely low. Therefore, no matter what the situation is, it is not advisable to carry orders. Whether it is liquidation or time-consuming, it is the failure of the transaction. And there's a lot of luck involved.
The above is my answer to these four situations, and I hope you will not have these four situations in the process of trading.
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Last updated: 07/31/2023 22:29
It's too hard for me to sell at a low point! I used an EA before, but it was too rubbish, so I discarded it, why is it so rubbish! First of all, the entry strategy of this EA has always been a mystery. I thought I had figured out his entry strategy, and even read the manual carefully, but finally found out, eh, no, it is said to be based on Fibonacci retracement, but many times Entering the market is not ah, so this creates a problem, so often enter the market at the high or low point of trading, and I don’t understand the rules of his position closing. The closing position refers to the balance when the total profit is positive. The position, so to speak, should be profitable, but he lost several hundred dollars, he closed the position just to close every order with positive profit, and the order with negative profit has been hanging, and he will not stop the loss! ! !
Therefore, among all the orders, the order with the largest loss appeared, 0,01 lots of Europe and America, and when Europe and America changed from a downward trend to an upward trend, they made a short order, as shown in the figure below:
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Last updated: 08/04/2023 23:07
When the market has just been stopped, there are two possibilities in the future, one is to pull back, and the other is to continue. If it is a pullback, you will feel frustrated, and you will pull back when you stop the loss. If you see the right direction, you will be swept away by the small stop loss, and you will be depressed; if you stop the loss and the market continues to run unilaterally, will you lose less? A lot, if you think about it, if you don't set a stop loss, how much you will suffer. At that time, it is not frustration, but vomiting blood. The market trend of foreign exchange trading has two sides, so we must treat it objectively. Setting a stop loss is to protect yourself. If the market is unfavorable and the loss is stopped, then wait until the next time you operate, and the market is favorable, and you can enjoy your own profits.
In foreign exchange trading, no matter whether you hesitate or not, no matter how you operate, even if you don’t need to review, your overall win or loss will be average. If you always feel that you have missed a big opportunity because of hesitation, but It is just your illusion that the order that you operate has been stopped repeatedly. Because you form a painful memory of the list you missed or made a mistake, and you are deeply impressed, you will think this is the case. In fact, if you continue to do it, you will also find the opposite phenomenon. For example, you are optimistic about the market because you hesitate. You made a mistake and lost, but you won a big victory as soon as you operated the order later, and you feel that you are very powerful.
If you are long, you will fall, if you are short, you will rise, and you don’t need to be bothered if this happens when you gamble. This is a normal life, and foreign exchange trading is also a foreign exchange life. When you are going well, you have repeatedly fought and failed, but there is no eternal trough or eternal peak in life. Life is a cycle of ups and downs. Don't get entangled when things go wrong, it's only temporary, smooth things will come soon, and don't be ecstatic when things go well, because bad things may come too. We can't change the distribution of life fortune, but we can change our own operations, use small and large operations, do a good job in fund management, and add some skills, and we can still be profitable.
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Last updated: 08/07/2023 18:55