Why are there so few stable profitable Huiyou? There are many liquidated and repeated losses? Is it really because of technical analysis?

In the trading circle, most people are bound to lose money. If you want to make money from trading, it must be a very difficult business, let alone making a living from trading. Focusing on a few questions you raised, here are my views.

1. Regarding profitability

First of all, trading profits, especially stable profits, are based on risks. Since we are willing to earn money through this risk, we must minimize the risk in the process of taking on the risk. Some friends may ask, trading is high-risk, high-risk and high-yield. How can the risk be minimized?

In fact, reducing risk is not what we understand literally. What are the risk factors in trading? The fundamentals we know, technical stop loss, resistance to orders, trading against the trend, and too many unfounded attempts, etc., are all risks. What can we do? I think the first is the stop loss, the second is the "nonsense" part of the transaction process, and then the release of key fundamental information is avoided.

Stop loss is the primary task and basic skill to reduce risk in trading. No matter how effective the system is, it will inevitably experience the occurrence of small probability events. If the stop loss is not in place, as for the result, the profit will be severely withdrawn, which will affect the trading confidence; the most serious one will be liquidated and washed out of the market. As for the "nonsense" part, we can completely avoid these irrational behaviors. Since many trends or signals do not belong to the logic of our system. Well, let's just let it go. If you participate in such an unclear trend rashly, you are destined to be washed out in the shock. Once you are stopped too much because of participating in this kind of turbulent trend, you will be hit psychologically, resulting in retaliatory and impulsive trading, and the next outcome is... loss, loss, loss.

Avoiding important fundamental data, this question may be considered redundant by some friends. No matter how you look at it, it can be determined that fluctuations caused by fundamentals are sufficient to disrupt the laws of short-term trends, and even change the direction of short-term trends. After all, we are not financial experts and economists, and we cannot accurately predict and measure the release of fundamental data. Even if some friends have this ability, small probability events will happen. Just like the weekend flare-ups of crude oil some time ago.

2. About Liquidation and Repeated Loss

Liquidation, first of all, is the problem of stop loss. The second is the result of not having a system, or having a system but not fully applying it. These two questions, I believe, do not need too much explanation. Everyone will understand the meaning of it. Without a mature system, you will definitely not be able to see the trend clearly, let alone start. The number of "nonsense" has increased, and slowly losing money has become the norm, and liquidation will inevitably occur. Therefore, having a mature and effective system is an essential weapon for trading. Without weapons, you will not be able to enter the battlefield.

Liquidation is reflected in anti-order, heavy warehouse transactions, etc. These are some common senses that everyone is familiar with. As long as you remind yourself in real time during the transaction, you can control irrational operations in this area.

3. Questions about the system

The second article said that the system is an essential weapon for trading. As for whether the weapon is not easy to use or not, it depends on the important factor of "people". According to personal experience, when choosing a system, we should comprehensively consider all aspects of the system.

Of course, the most talked about trading system in the market is still technical analysis. After all, most traders are technology enthusiasts, which is also a difficulty. For them, having a good technical analysis system is equivalent to laying the groundwork for most of the transactions. Technical analysis, this is a never-ending path of exploration, but without over-optimization. Technical analysis focuses on logic, and when there is no exact logical signal sent, try not to operate as much as possible. Otherwise, if you break the rules and trade only based on subjective judgment, you are bound to lose money. Because of this, when many traders find that the system is not ideal, they will over-optimize to achieve their expected results. As everyone knows, doing so is undoubtedly embarking on a vicious circle. The more you optimize, the more the system will fail. Because the market is ever-changing, any analysis system will have bugs, and any system will not be so perfect.

In summary. I think that if there is a continuous loss. You might as well stop trading and let yourself calm down first. If you have a system, please take the problem of your loss completely, learn it again or do a serious review. You will definitely find the problem.

If you don't have a system, I suggest that you suspend trading first and learn a set seriously. Among the many sets of technical analysis systems I have come into contact with, the only one I admire is "Chart Analysis and Trading System". This system is not just a technical analysis system, it includes fund management, mentality management and other aspects. Regarding technical analysis, the author has unique insights into the definition of secondary reentry in Dow Theory. For the actionable part of the callback, it is clearer and more explicit. For the definition of the trend, the key position theory is clarified, and the direction can be more clearly identified when it is in the early and late stages of the trend.