Why do we still fail to trade after learning so many trading indicators?

Most friends who do trading have learned a lot, including technical indicators, trading strategies, trading psychology, etc., but they still lose money after learning a lot, so there is a kind of "learning is useless" on the Internet: those who can make profits in trading He is the chosen one, and only when his IQ reaches the standard can he do business. It is useless for ordinary people to learn more.

What are the facts? Let's talk about this topic today.

1. You learn too many useless things

Manifestation 1: Obsessed with technical indicators

Friends who have read my previous articles should know that I was also a heavy technical indicator enthusiast in the early days, and a diligent pacesetter in trading and learning.

There are dozens of technical indicators that I have learned. I have studied all the indicators you can think of, including some off-the-wall indicators.

Once upon a time, I simply dismissed the most basic indicators such as Bollinger, moving average, and MACD. why? Because they have no technical content, anyone can use them. To what extent? As long as anyone tells me about the moving average, I think this person's trading skills must be very poor. I have to be different from him and learn some indicators that others don't understand.

Later, I fell into a technical black hole: various high-end indicators + a trading system that is too complicated for anyone to understand + a trading logic that cannot be explained clearly in a paper.

The result later was: Lost, so bad that my father didn't even know me.

People really only reflect on the things they have done and the mistakes they have made when they have reached the bottom of the valley. Later, I tried to set up several sets of trading systems, all of which used the moving average, which I disdain the most, and they were all relatively simple. I used the most basic three or four indicators, and then I gradually made profits.

I have been through this stage, so I know that many people want to find the most amazing indicators in trading, the most mysterious Holy Grail in the trading world, and want to only make profits without losing money. Everyone wants to, which is why some people can only be leeks , some people can make money.

Here is my own personal experience to tell everyone: the great way is simple, not just talking about it, but the experience accumulated with money.

The picture below is the indicator I am using now, it is very simple.

Manifestation 2: Thinking without a trading system

Many people yearn for the trading system, but they don't know what it is, so they just study it randomly, without pertinence. Because I don't understand what a trading system is, and I don't know what the framework of a trading system is?

The process of setting up a trading system:

A: Transaction logic

B: Elements of a transactional framework

C: Standards for each element of the technical indicator confirmation framework

D: Standards of money management

E: Review and verify the effectiveness of the trading system

One step is missing, one detail is missing. In fact, the trading system is not complete, and there are many obstacles to use. If it can make a profit, it is only short-term luck.

The trading system is not solid, the execution is not in place, the transaction is not consistent, and the final result distribution is loss > profit.

So don't ask why you haven't made a profit after learning so much? Learning is necessary, and the right direction is also very important.

2. There is a deviation in the understanding of transactions

Deviation 1: Misunderstanding of the application of trading techniques

For the same trading system, different users or learners have completely different understandings of the application of the trading system:

The first type of people think that other people's trading system can be referred to as a core strategy (rough), and constantly debug and improve on the rough, and finally integrate with their own trading habits to achieve the purpose of making money.

The second type of people think that other people's trading systems should be used as soon as they get started. If there is a loss or improper profit, then there is a problem with this trading system.

Therefore, different cognitions lead to different trading results.

So many people always say: Why is it so difficult for me to find a good trading system? Why can't I learn from so many teachers? Why can't I make a profit after doing so much?

This is where the problem lies.

Deviation 2: Deviation of trading cognition

Many people have been pursuing this kind of deterministic trading and trend regularity throughout their lives, including many of my obsessive friends, whose families are broken and alone, and they are still pursuing it.

Because of cognitive bias, many people's endings are not the same.

In fact, people who really do a good job in trading need a little wisdom, a little philosophical thinking, and a little overlooking perspective to look at trading, in order to really realize some of the truth.

I don't want to make the transaction very mysterious, let's understand it by ourselves.

3. Start trading directly without reviewing the order

Many people have learned a lot, and the amount of knowledge is very saturated, but most of them have not been verified or digested, so they just start trading directly, and the final result is a loss.

Learning is the process of receiving, trading is the process of output, and review is the stage of connecting the past and the future.

Replay can directly save two costs:

(1) Economic cost.

Do you have such an experience, learned a certain indicator, looked at the situation on the chart, felt very effective, then start trading. After some operations, I found that the effect was not good and I lost money, so I changed to another indicator for actual combat, and the result was a loss again, and I began to doubt myself and life.

In fact, this situation is very simple, just buy a review software, and you will know whether the indicators you want to try are effective or not.

The reality is that many people are too lazy, and would rather keep losing money in the transaction than buy a review software.

(2) Time cost.

For example, for an hour-level trading system, you have to test it for at least three years to determine its effectiveness and collect enough data. Who can simulate trading for three years in reality? Three years later, if the system is not perfect enough, adjust the parameters and strategies and then review for another 3 years? unrealistic.

Using the review software to review the market for 3 years can review the market for a week, and your understanding of trading will be completely different.

Generally speaking, doing bad trading has nothing to do with how much you have learned, the key is how to grasp these things.