What are the stupid behaviors in trading?

       In the financial market, the term liquidation is often heard. Looking at the accounts of all liquidators in the market and their trading process, you will come to a conclusion-the stupid behavior in the trading process led to their final liquidation. All liquidation is the most intuitive display of all stupid trading behaviors.

       Then we can't help but ask, what behaviors lead to liquidation? How can we avoid liquidation after knowing the reasons? Next, let's take a look at the six major causes of liquidation and their solutions.　

　　1. The position is too heavy

　　Placing heavy orders with a large proportion of leverage has a poor anti-risk ability, which belongs to excessive trading, and is the main reason for liquidation. The way to avoid it is to have a small amount of light storage and a constant flow of fine water. For example: in the "mini account", if you have a principal of 10,000 US dollars, use 10 times the leverage, and open a position at most no more than 1 lot each time, so the anti-risk ability is more than 900 points, and the risk degree is about 10%; if the position is full Open 10 lots, then the anti-risk ability is less than 100 points, and the risk degree is more than 90%. As long as the trading currency moves in the opposite direction by 100 points, it will be blown up. Some people may think that positions are too light and making money is too slow. In fact, the essence of making money from trading is to make money with compound interest, not with explosive interest. Regarding the mode of making money with compound interest, everyone is different, and investors can summarize it in practice.

　　The solution: light storage and small quantities, follow the trend;

　　2. Frequent transactions.

　　Frequent entry and exit, excessive trading, some people have their positions liquidated because their positions are too heavy, but some people's positions are also liquidated due to light positions and small amounts. The reason is "frequent entry and exit, excessive trading". From a psychological point of view, there is no plan, eager to make money, placing random orders, placing emotional orders, and finally the mentality is very bad, the odds are high, like a blunt knife cutting flesh, cutting it bit by bit, bursting warehouse.

　　Solution: After 3 failed transactions, resolutely exit the market.

　　3. No stop loss

　　In addition to the word "order" in everyone's words, stop loss is the most talked about, but many people still lose their positions because there is no stop loss. The reasons are psychological obstacles and technical factors. Psychological obstacles are mainly reflected in the existence of luck. Once a position is opened, there is no stop loss, and waiting tremblingly is like tying yourself to a car that has no brake system and is about to overturn at any time, hoping that the price will move in the direction where you opened the position. But speculation is not gambling, and luck and luck cannot be with you forever. If you want to make stable profits, you still have to rely on your own real strength. The market has its own rules of operation, which are independent of anyone's will. Therefore, the bad trading habit of fluke psychology must be eradicated early in one's own trading behavior, otherwise there will be endless troubles.

　　Solution: keep in mind the iron law "stop loss is necessary for your survival".

　　4. Blind copying

　　There are many friends who blindly follow other people's "orders" to operate, and there are quite a few who have no own opinions and lead to liquidation. The reasons: one is that they are not confident in themselves and have a bad trading habit of listening to news, and the other is that they have blind thoughts of worshiping masters. The masters are market forecasters. Due to the uncertainty of the speculative market, no one can stably predict every important market turning point or market fluctuation, and the masters are no exception.

　　Solution: You can refer to it, but you must have your own operation ideas and follow the trend.

　　5. Against the trend

　　Whenever there is a "squeeze short" market or "kill long" market in the market, many people's accounts will be blown up. The reason is that investors blindly "dead long" or "dead short" will not be flexible and adapt to the situation ;And the more you make mistakes, the more you increase the price, and you increase the dead price, imagining that one day the price will turn around and you can turn defeat into victory; as a result, the "bullets" are fired early, and the "death" is in the middle. You must know that there are neither longs nor shorts in the market, only slippery ones can survive for a long time.

　　The solution: practice hard and follow the trend.

　　6. Obsessed with obsession.

　　Due to personal personality reasons, many traders did not close their positions in time when they were in danger. Instead, they took a fluke attitude and knew that there were tigers in the mountain and went to the tiger mountain. This kind of obsessive attitude is stupid in the foreign exchange market. It’s nothing more than wanting to make money in the foreign exchange market. If it doesn’t work this time, you can wait until the next time. This is undoubtedly a waste of funds.

　　Solution: Keep in mind the famous saying "The market is always right, and you can only be wrong." ,

　　In fact, sometimes the truth in the financial market is very simple. Although many people have read a lot of great experience, but do not implement it, or do not review and summarize after execution, in the end they still cannot avoid the ending of loss and liquidation.

       If you want to survive and develop in the financial market and improve your abilities in all aspects, you must also restrain or even eliminate a series of stupid behaviors that can cause account liquidation, so that you can remain invincible in the market and go ahead of others. The further you go, the more wealth you will have.

In fact, I think the essence of this problem lies in how to restrain one's trading behavior, how to regulate one's own trading, and let oneself do less "stupid things"

In order to strictly enforce the trading rules in the transaction, two situations need to be met: completely submit to the trading rules, and be strictly enforced by the outside world.

Since the vast majority of traders are individual traders, they do not have the constraints of external coercive forces. Every trader is basically unrestrained, and unrestrained means no discipline.

Therefore, if a trader wants to strictly implement the trading rules, he can only rely on his own control. How is this self-control formed?

Many people have given many so-called methods of self-cultivation and mind-cultivation in order to obtain such inner control. What is the effect? Different people have different opinions.

Things can be a lot easier if you treat your own trading rules as a totally reliable confidant.

If you want to treat your trading rules as a completely reliable close friend, you have to spend a lot of time with it, and being with it is a kind of more and deeper understanding and understanding.

Only on the basis of more and deeper understanding and understanding can you become a close friend with it, and can you completely trust it, obey it, and act according to it in transactions.

Therefore, kung fu is outside the market. After the trading hours are over, you still have to spend a lot of time with your trading rules, which is reviewing -- carefully observe its changing structure in those changing areas, design a coping formula based on the statistics of large samples, and repeat it over and over again. Practice doing it over and over until it becomes instinctive.