If we treat the market as only 100 people in the transaction, facing the futures speculative market, only 20% of the people who can survive in the end, but how can we become the 20% of the population? For some people, it is destined to be eliminated from entering this market. Therefore, we want to be 20% of the people, we must defeat the remaining 80%, and in this 20% of the crowd, you are just one of them, this proves that you are actually a person who is fighting 99% of the battle, so you Either it is very heroic and good, or you can "battle" as many people as you can to fight to get a higher probability of winning (team operation), or you will eventually become a hero (sacrifice).
Since I started trading, compared to the predecessors who have been trading for 10 years, this experience and trading time are far from enough, or the road I have to go is still very long, but for the new comer of the futures market, maybe I can count as a lucky person who has lived for a long time. I feel that I am lucky, but I will tell myself every day, maybe the next one is me.
It is not easy to survive from this market. It needs to be taught by others, but it cannot be taught by others. This is
What do you want to get?
Everyone knows that the Rockefeller family are the smartest and most profitable people in the world. At the Rockefeller family adulthood, parents will give their children three questions: 1. Where are you now? 2. Where are you going? 3. How do you get there? Then ask them to save the answers to these three questions until they ask the next generation.
Of course, we all know that their three problems mean to find their own position, then set a goal, and finally how to achieve this goal. In fact, the same is true for futures trading. These three can't be less, and each time must remember these three aspects, so I think that someone could survive from the futures market is better than the Rockefeller family.
What do you want to get? Everyone will feel very funny. Isn't everyone's purpose just to make money? Yes, this is true, but in the concept that you want to make money, you ignore the same thing, that is, what part of the money you want to earn or how much. This is very important. For example: You want to make money in a lot of ways, you don't have to earn it from the futures market. Another example, beggars on the street are also making money, and Sweaty workers on the construction site are also making money. The same is true for subdividing into the futures market. The wave theory is to make money, and to do the band trading or the middle-term or the long-term trading is to make money. This problem is. Do you want to earn it with short or medium or long or bands trading? Many people will answer what I want to make money in all these ways. Congratulations, you can't make any money in the end. I think everyone who understands you can't sell the cow and drink the milk at the same time.
First of all, for example, you originally wanted to do the middle-term trading to make a relatively large profit, but there is a very big fluctuation in front of you to lure you to do short-term trading, you start to think, is this the obvious opportunity for making fast money right way? So you place an order without hesitate, this situation is divided into 2 cases.
First is that your middle-term or short-term orders are in the same direction of the market moves, the second is the opposite way.
when it is the same, you may be earning this short-term profit, but you will soon take profit in a short-term manner, and there will be a lot of profits later than this short-term, so this situation is not too bad, at least still earned money.
Second situation is terrible. The short-term and middle-term single-segment directions are reversed. At this time, it is very likely that the middle-term has become a short-term way. In this way, the short-term line becomes the center line, and the direction of the center line that you originally looked is correct. But because of your short-term direction, it is the opposite of it. At this time, the contrarian-trend trading operation will appear. A mentality broken will occur. Under these circumstances, people's bad habits are usually the same. Let me wait a little bit longer? Maybe it will rise again, at that time, I can lose less than right now.
But unfortunately, the market continued to develop in your unfavorable direction. The losses continued to increase. This mentality began to panic. A short-term order caused a large loss, and the ratio of profit and loss seriously lost balance. I believe most of this error. Novices have committed. Where is the cause of this error? It is not difficult to find out when you look back because you are greedy for what you should not have. Why is it not that you deserve it? Because you originally supposed to be in the middle-term, you want to eat the short-term part of profits, of course, other people are not so easy to let go of you, or else where the short-term trading to make money, this is actually very simple.
Knowing and doing
Knowing and doing, as the name implies, your thoughts and ideas must be the same as your actions. In fact, this is very difficult to do. I often like to use this sentence to describe the contradiction in trading: the struggle between thought and action.
It is huge breakthrough if someone can last doing it for a long time, in fact, many people analyze the market is correct, and the analysis is right about many specific details, but why the result is losing money?
For example, a trader believes that London cooper should basically fall to the bottom after the financial crisis. There should be a small rebound. So he started looking for opportunities to build a position to rebound, but at some point. In a single trading transaction, copper suddenly fell to a big price gap. At this time, his subjective consciousness still looked at the rebound, but he made an selling short order. He wanted to make a small profit and close the position then buying long, but in the next few trading days. the copper price rebounded for a week in a row. At this time, he jerked back and looked at himself. How did he lose money when the market was bullish? I told this because his actions are not the same as his own ideas. he knows that it is the bottom now. he still selling short, knowing that the rebound is coming sooner or later. Why not prepare for the rebound? Sometimes there are things that can only blame themselves.
There is another situation in this case, that is, when you are not sure about the market, when the subjective viewing method is very uncertain, it is best not to place any order. Why? In fact, it is very simple. Even yourself can't believe something, this thing must very hard to accomplish. For example, the gold price at certain day, I am very difficult to see the direction, I feel that it is possible to go up or down, or maybe, not move at all.
Many people start to choose gambling or ask others how to do. This reminds me of a friend's sentence, "gambling is wrong, not gambling is missing." This is indeed quite reasonable, but I refuted him at that time. I said that in this market, I would rather miss it not making it wrong. Therefore, it is best not to go to gambling at that time, neither buying long nor selling short. In fact, many people can't stop trading. As long as the market is going, he wants to make trading. This problem is also common. Therefore, the simple principle of “see more and move less” eliminated a group of people. You just keep sending orders, there are 3 kinds of people who like this very much (exchangers, Brokers, your agents),
The above also contains a situation, when you are not sure, ask other people's opinions to place an order. First of all, you should understand this. This order is not based on your subjective consciousness, but it is also your own decision. At this time, maybe you will think like this, others have done this, and I should not have a problem with it. This problem can be big, it is distance from heaven to hell. why?
First, in the consciousness of others, this order is well prepared in case of something wrong, or to take profits when the thing is right, but in your own concept, there is no strategy at all, so once you encounter an exception in the case, you start to panic, don't know where to start. Even if it is right, do you know how to take profit? There is no concept of winning in your subconscious mind. Only the concept that whether others have closed positions yet. At that time, because of their own amount of funds and positions, the mentality state is different from others. So the strategy to be done is far apart.
Also, there are some traders who are guilty of knowing what their opinions are. They ask people around them how to look at the market. At this time, the following bad phenomena will occur:
- You and his views and directions are about the same 2 The thinking of the two people is completely inconsistent. The former is okay, both of you can be self-satisfied (but will also encourage you own greed), the latter is troublesome, for example, other people's analysis feels that they will doubt their own judgments when they are in place and comprehensive. At this time, the idea will be messy. At this time, there is no big picture at all, and there will be limitations. Therefore, I personally feel that it is necessary to discuss the market, but it is better to pay attention to the situation, it is better to discuss the mentality practice in trading, and to communicate the mistakes made in the past, rather than how to predict the future, I think the meaning of predict the future is nonsense. Who knows what will happen in the future? who knows?
What we have to do is not to predict how accurate the market is, but what strategy to use when the market is not good for us. When the market is good for us, making money is a natural thing. So, if the strategy is good enough, you don't have to be so sad and mysterious.
About Stop Loss and Take Profit
These two words have always been talked the most time. Most people think that the stop loss is too difficult to set up. In fact, personally think that the stop loss is not difficult to set, and in comparison, it is difficult to take profit.
First of all, we must clearly define the concept of stop loss and take profit. The stop-loss is simply how to deal with the orders of lost money, and the take profit is when to close the order of profit.
It seems that these are very simple. In fact, it is related to the problem of earning more and earning less, and losing more and less.
Let’s talk about stop loss first. The purpose of stop loss is to reduce losses. Many masters or predecessors have repeatedly reminded the word, but they have no specific settings, why? Because each person's psychological endurance is different, I personally feel that the stop loss is not a public point, but based on each individual's psychological endurance. Another point is that stop loss is an order of dealing with losing money, so if it is not handled properly, it will lead to greater losses. Since my first day trading, my personal experience is that the stop loss will never be too fast, only too late. Therefore, I think that the stop loss must be set to your own maximum capacity beforehand. You can only stop this in advance or at this point, and you can't continue to delay. Don't wait and see. As long as you have this idea, you will lose money a day sooner or later.
Stop loss requires iron discipline. Generally speaking, this is not difficult. Give yourself an agenda indicator (execute it slowly any it will become part of character of you).
In contrast, the take profit is just a very universe question. Some people will start to refute me. Why is it difficult to win? Isn’t it just to close the position of making money?
It’s good to make money. Therefore, the problem has come out. After you close the position, you will stop winning, this is what everyone calls a take profit. What about the market after you closed your position?