What is the difference between large capital and small capital transactions?

Let’s talk big money first. The larger the funds, the easier it is to trade, and the operation mode of large funds is much simpler than that of small funds. Because the amount of funds is large, the position can be controlled very low, and there is also a lot of room for maneuver. So big money took advantage.
For example, if you invest 100 million yuan and invest several million yuan as a deposit, you can really relax enough to go fishing. For investors with large funds, risk control is extremely important, and good risk control is inseparable from correct trading concepts.

Trading philosophy is a trader's basic view of the market, which represents the understanding of the relationship between people and the market. A trader keeps thinking about the relationship between himself and the market during a long period of trading, and sometimes you will have such moments of insight: What is a trend? Can humans predict trends? What factors are affecting the direction of the market, moment by moment or individual time period?

What a large capital trader should understand most in this market is the limitation of people. The market is first and foremost a meat grinder, not a breeding ground for wealth. You have to find a way to prevent your account from being strangled by the market before you can get the part you won. Therefore, stop loss is not terrible. The key to stop loss is to control risks. The uncertainty of the foreign exchange market is much greater than that of other markets. Sometimes a data or event may distort all the technical graphics. If you do not control the risk, the market will not bring you happiness in the end, but start from scratch again and again pain.

　In the operation method of big funds, we must first analyze where the trend is. It is the ideal goal of traders with large funds to win all the magnificent trends. They have a determination not to give up until they reach their goals, because only in this way can the entire account be in a profitable state.

　Do not pursue poly, only pursue stability. Maybe for a certain period of time, the stop loss will be stopped 2 or 3 times in a row, but the operation method of big funds will still place orders according to their own system, because they are sure that the spring will bloom after the dark, and as long as they do it right once, they can cover the previous losses. loss and be able to make a profit. Under this appropriate profit-loss ratio, the money will roll more and more. Only the trend can bring them a suitable enough profit-loss ratio, find it, and ride it.

After climbing over the mountain of "trend", position is also a very important part of large capital operations. If you intervene in the middle of the trend, once a big retracement occurs, you will not be able to bear it. The great speculator Livermore said: Don't lose your position. He warned us not to close out the initial position easily, because it is difficult to find an opportunity to enter the market after the market rises. At the same time, entering the market at the beginning of the trend is a key position.

To judge the trend, you also need to find the key entry position in order to complete a beautiful swing trade.

Finally, a summary of the characteristics of large capital operations:

　　1. Strict control of stop loss/risk

　　2. Let the trend bring you profit

　　3. Enter at the beginning of the trend

　　4. Hold, let the profit run, pain and happiness

Let's talk about small funds. Due to the relatively small amount of funds, the transaction risks that can be borne must be relatively small, so there must be more points that need to be paid attention to in the process of placing orders.

First, small capital orders must have their own trading principles. Making money with small funds is the second priority, and survival is the main purpose. Therefore, when making orders with small funds, it is best to make short-term transactions within the day. Do not operate more than 5 times a day, and try not to make orders after the daily profit exceeds the target set by yourself. Moreover, it is best to only do one trading variety every day.

Second, small funds must have their own trading philosophy. Establish the concept of opportunities every day, wait patiently, and wait for the rabbit;. Establish the concept of fighting a protracted war, overcome the impatience to win; establish the concept of winning without losing, and use stop loss rationally;

Third, small funds must have their own set of trading methods. Grasp the direction of the day. Only do one transaction direction. Summarize experience every day and constantly improve your tactics.

Fourth, when making orders with small funds, you must follow the trend of the market to conduct transactions. Due to the relatively small amount of funds when placing orders with small funds, in the process of placing orders, it is very likely that "the whole family will go bankrupt" due to temporary incompetence. Therefore, when making orders with small funds, safety must be the first priority. The most taboo of small funds will be to grasp the top and bottom in an attempt to obtain a large amount of income at one time. Once the judgment is wrong, the loss will be heavy. At this time, the most important thing is to follow the trend, not to dislike the low income, and to accumulate your own funds little by little.