Use rules to solve stop loss and position opening problems, use trends to solve stop profit problems, use trends to interpret probability, use probability to solve beliefs, and use profits to increase confidence. In this way, you are sure to become a profitable winner!
Many people believe that discipline and mentality control are more important than anything else in trading. However, I point out unceremoniously: This is the premise of everything. You must have a complete and market-tested trading system, otherwise, you will lose money. There is a danger of becoming empty talk.
Most people lose money because of stop loss:
- Random stop loss: You stop the loss on orders that do not require stop loss;
- Stop loss: When faced with orders that require stop loss, you do not stop the loss and carry it to death. And you increase your position to death, so you suffer a big loss.
A set of foreign exchange trend order making systems, a proven and stable profitable system, plus trading rules, plus fund management, multiple varieties, risk diversification... Take advantage of probability and stick to it for a long time.
1
From "Enlightenment" to Dacheng
The process of establishing a system is divided into three steps:
Opening a position
Opening a position is your first step, because opening a position is your first step. Either the position was missed, it was too early, or it was opened Later, when faced with a stop loss, you will be afraid of a loss, fearful, and timid, and will not dare to place an order. You must overcome your fear.
Stop loss
The second step is to stop loss. Stop loss is more difficult, because it is possible that the price will come back after stopping the loss, or it is possible that the loss will continue without loss, and it is impossible to achieve the best.
Stop loss is not only a loss, but more importantly, it is a blow to you, a psychological blow. Can you trade rationally without retaliation? Do you still have the courage to open a position when faced with the opportunity to open a position again?
If the stop loss is done well, you can basically avoid losing money, which is also a sign of getting started. Stop loss, once a mature system is in place, stop loss becomes clear and visible:
When is it necessary to stop loss?
When is a loss temporary?
When should I stop the loss before pursuing the order?
Here comes the problem, what if you are not given a chance to stop the loss?
For example, like the recent extreme market fluctuations, if you do not set a stop loss in advance, you will not have time to stop the loss. If the position is too heavy, it may even cause your position to be liquidated.
Once a person stops losing money, he or she will have the feeling of taking a gamble, letting the losses continue to expand, and finally having an emotional breakdown. You begin to regret that you failed to stop your losses in time.
Stop loss becomes important in your mind, so if the price rebounds, you will stop loss.
Instead of regretting it, it is better to make a trading plan in advance and decide in advance when to enter the market and when to stop loss. In this way, even if you stop the loss, you can control the stop loss within the acceptable range without being too upset.
The problem comes again, what about the stop loss back and forth?
This is also a problem for many people. As soon as the loss is stopped, the price comes back; if the loss is not stopped, there is no loss.
Stop loss is inevitable because no one can be right. If you want to make money, you can only rely on less stop loss and more take profit, or small stop loss and big profit. Finally, you must have methods to deal with extreme market conditions.
Therefore, once you solve the stop loss problem, it proves that your system has been perfected, the stop loss can be achieved, and if it is executed, you will not lose money, which means you are getting started.
As long as you pass the first and second steps, you will find, "Hey, you can basically do it without losing money." You will slowly become more confident. When you lose money, you will still be confident, and even you will Can turn stop loss into profit.
Patience
The third step is that you have patience.
- You can be patient and not open an order for several days. Once you seize the opportunity, you can continue to attack, and you have found the so-called rhythm;
- You can wait for the opportunity to open a position with the smallest stop loss, and face the stop loss. You can cut it off without hesitation. Not only will you not feel sad, but you will be very happy.
These are all fragments of the psychological maturation process, as well as my true psychological feelings and process.
However, after establishing the system, you may not necessarily make a big profit, let alone a big success. You may even fail to execute it in the middle because there are still some steps that have not been resolved, and that is a matter of belief.
From enlightenment to Dacheng, it can be roughly divided into six steps: Enlightenment to system, to rules, to self-confidence, to belief, to Dacheng. Taking my more than ten years of trading life and the traders I know around me as an example, let’s look at:
- Enlightenment : realized that the market has a trend. Simply put, it is to follow the trend and stop losses.
- System: Find a way to divide trends, and you can easily identify the market.
- Rules: Concrete the system. To put it simply, find the opening and stop loss points .
- Confidence: System execution and review will bring you confidence. To put it simply, it means that your system can make money.
- Belief: Communicate with the heart and form beliefs and religious beliefs in the brain. To put it simply, you absolutely believe in your system and rules.
- Dacheng: Of course I don’t dare to say, and I can’t say that I am a Dacheng. It can be considered a small success, but I think that if I am satisfied, I will be satisfied with my life. This is faith!
2
Insights after getting started
After getting started, you have to face human nature and execution. What you face is fear and greed, and what you face is yourself. You will find that there are two selves, fighting with yourself.
After getting started, I have my own system and rules, and I have a framework for making orders. However, due to insufficient cultivation of one's own human nature, due to the uncertainty of the foreign exchange market, the nature of pursuing perfection, the complexity of human nature, and the fluctuation of the market.
Therefore, even if there is a system, it cannot be implemented and the implementation is not thorough, so you should:
- Continue to cultivate human nature, give yourself enough time, let yourself believe in yourself, and use time to make yourself do it.
- Once decided, execute it. The inability to execute and the pursuit of perfection will make you give up the system you have worked so hard to build, continue to pursue a more perfect system, and walk out the door again.
The more you do foreign exchange, the more you will understand the importance of human nature. Once you realize it, you will find that it is extremely difficult to execute.
3
The problem of human nature in trading
In addition to difficulty in execution, the problem of human nature is also reflected in the complexity of mentality. Most people lose money because their mentality is too complicated. Everyone has this experience:
When I first started doing foreign exchange: I might still make money, make money in a daze, or even make a lot of money.
After a while: After being taught a lesson by the market several times, he realized his ignorance, so he looked for books by himself and went to the forum to learn.The result is that the more you learn, the more you lose. No matter what you do, you will still lose. Loss becomes a normal state until you lose all your funds.
Steady losses are a habit. The more you do, the more you lose. The market will kill your own orders just like you do when you are right. When did
cause a stable loss?
Human nature, human nature, human instinctive reaction.
Human nature is like the gravity of the earth, grabbing you and preventing your speculative dreams from taking off.
A normal thing in speculation becomes your speculative weakness, as well as your inertial thinking and behavior, a series of factors, causing you to suffer stable losses, no matter how you do it.
This period of time is the dark period of foreign exchange trading, a period of time when there is no hope and no light. Most people are eliminated at this stage.
If the problems of human nature are not solved, it will be extremely difficult to make money. Generally, you will look back. Money is so close to you. If you cannot do it, you will not do it thoroughly. It becomes a stage problem that bothers me.
The method of making money in foreign exchange is against human nature and against the human nature of most people, so this is one of the reasons why foreign exchange trading is difficult.
So, how can we solve the problem of human nature?
relies on systems and rules. When you have a system, you will also find mentality problems. A series of problems such as how to solve mental problems and self-regulation require you to constantly solve them.
The yearning for happy trading, easy trading, and confident trading is a manifestation of a person's maturity and stable profitability.
Foreign exchange is easy to say and difficult to say. Anyone who has been doing foreign exchange trading for more than 5 years and has been doing foreign exchange trading full-time for more than 5 years. You ask him, what is the main reason why you lose money?
No one said it was due to technology, they all said it was due to mentality and execution. Everyone has their own favorite indicator or signal. The technology of foreign exchange trading is not difficult, the difficult thing is to take another step forward.
Faced with losses and stop losses, everyone's heart fluctuates and they all have emotions. You have to learn to adjust your mentality, make losing money a happy thing, lose money happily, and place orders with confidence.
4
Attitude towards the market
Faced with the rise and fall of the market, many traders will lose their composure, so what should be their attitude towards the market? How to get the market price of
? You are at a loss. Thinking to myself, I really don’t know, now you’ve succeeded. You give up your own subjective thinking and completely listen to the market, because you have jumped out of the stage of guessing the market.
You don’t care how the market goes, you don’t know, you really don’t know; but, you know in your heart, I know what to do.
You don’t care at all about news, news, etc., and you don’t care enough about it, but it only adds to the chaos.
5
From simple to complex, and then from complex to simple
Return Over the past ten years, the process of foreign exchange learning is a process of becoming simpler, one becomes simpler technically, and the other becomes simpler mentally. Only by achieving these two simple things can foreign exchange truly become simple.
If you think foreign exchange trading is too complicated, then foreign exchange is complicated. If you think of foreign exchange as simple, then foreign exchange is simple. The complexity or simplicity of Forex is entirely up to you.
However, most people only achieve technical simplicity.How technically simple is
- ?
has found his own basis for making orders, which can be stable and profitable. It has been tested and verified in actual combat. Some call it the system and others call it rules. In short, it is his own basis for making orders. Then convince yourself to trust him and rely on him.
Don’t believe those people who have mysterious tactics and secret indicators. They are just the basis for making orders. You can name your system and indicators “god-like indicators or God’s hand”.
- How simple is your mentality?
Psychological self-suggestion: Foreign exchange is nothing more than rising and falling, two directions, then foreign exchange becomes simple.
In fact, you don’t need to know the essence of foreign exchange trading. Behind the price fluctuations, you only need to know whether the price has gone up or down.
If you insist on being complicated and the price goes up, you have to figure out why it went up? data? policy? funds? The more you think about it, the more complicated it gets. The more references you have, the more complex it becomes.
’s feelings about his own humanity in foreign exchange trading: Steady losses are a habit.
6
Follow the trend that you can do, and follow the trend that you can afford to lose.
The secret of foreign exchange profit lies in the nonsense, among the correct nonsense - follow the trend that you can do, and follow the trend that you can afford to lose.
Because you don’t have sword skills, even if I tell you the sword skills, you won’t be able to use the sword. When you make a steady profit, you will find that many people’s concepts of making money are similar or even the same, but they have different opinions.
All financial transactions are: You must have an effective price tracking system, and more importantly, good fund management and risk control mechanisms, treat transactions with a "dispersed" and "persistent" perspective, and maintain long-term success in the speculative market. Take advantage of probabilities instead of going all-in.
Looking back on my trading career for more than ten years, I tried all kinds of techniques and methods on the market like a monkey breaking corn.
- The first five years: The process of "finding rules and forming a system" has gone through stable losses, small losses, no losses, and small wins. It is a step-by-step process; after experience, do it by feeling, find The system acted randomly, and finally settled down, forming its own trend ordering system.
- The first was the execution level: I was very confused at first. Most of them fail to pass their own stop-loss psychological barrier;
- The second is the psychological barrier of position : Facing the ups and downs of the market, they always change themselves at will;
- The third is the psychological barrier of stop-profit: Sometimes, it is found that taking profit is more difficult than stopping loss.
So I went to various forums to see how others passed this level, and also read a lot of books.
In fact, these psychological barriers will gradually be relieved by you as your skills continue to be refined, the rules are constantly improved, and the system is constantly improved.
Time will change you. From the first time you place an order, your hands are trembling, and you can’t sleep after placing an order overnight, to the last time you place an order, you don’t have to look at it for several days.
started from looking for the system based on feeling, and then through continuous accumulation, formed its own trend ordering system. Until now, I can wait and dare to chase, and my ordering has become more and more mature.
I constantly reflect on the psychological changes in my trading, communicate with myself, subtly guide my psychology, constantly tell myself what is right and what is wrong, and I am brainwashed by myself, and gradually form a religious belief.
Of course, from knowing to doing it is a process of reshaping one's own trading behavior. Since it is a process, failure and mistakes are inevitable in the middle.
For most people and ordinary people:
Only after at least 5 years of experience can you form your own system and rules before you can get started. If you want to really make money, it will take about 2 years to transform the system into behavior.
Therefore, it will take about 7 years for most people and ordinary people to make money from the foreign exchange market. It does not rule out that some people who are lucky and smart, or have guidance, or people who have sufficient funds and are not afraid of losses, can break This time frame.
The process of executing the rules of foreign exchange trading is also a process of convincing yourself, constantly convincing yourself, and making yourself better and better.
The cultivation of human nature starts with stop loss and profit stop. Follow the trend that you can do and win confidently; follow the trend that you can afford to lose and lose willingly. This kind of transaction can be more calm.
From consciously controlling yourself to finally unconsciously controlling yourself, as long as you place an order that is inconsistent with your own rule system, you will feel very uncomfortable.
You will feel that the technology is getting simpler and simpler, and the mentality is gradually becoming simpler. Now you are able to wait, dare to chase, dare to stop losses, and make profits. Order making is becoming more and more mature.
It is a process to establish the correct trend trading concept, to form a trading system, to concrete rules, and then put them into practice, constantly restraining one's own humanity and fighting against oneself.
Foreign exchange trading is a learning process, a process of experience, a process from complexity to simplicity, a process of human experience, a process of constantly improving system rules and reinventing oneself.
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