Every investor who comes to the currency circle will experience major losses, liquidation, and losses in their trading career. There is only one kind of person who makes a fortune among the army of currency speculators, and that is those who have experienced bankruptcy and then People who sum up experience and have a big mentality.
If you have never experienced a liquidation or a major loss, you will never know what stop loss is; if you have not experienced profits and losses, you will never be able to understand the change in mentality of thinking about heaven and thinking about place.
1. Survival is the first principle
Sun Tzu said: Those who were good at fighting in the past were first invincible and waited for the enemy to become victorious. It is very simple to avoid big losses. Take survival as the first principle. When there is a danger that hinders this principle, abandon all other principles. Because no matter how many 100% outstanding results you have had in the past, if you lose just one 100% now, you will have nothing.
Once your funds are wiped out, you are destined to be eliminated. If you want to play this game well and obtain the final victory from this game, all systems and rules must be based on the principle of preserving the principal.
2. Correct fund management:
Every success will only make you take a small step forward, but a failure will make you take a big step back. This big step prevents the accumulation of funds. The accumulation of funds requires opportunities, and more importantly, time. Human nature It is always the case: the pain of losing 1,000 yuan is far greater than the joy of gaining 1,000 yuan. The loss of a large amount of money can easily affect an investor's mentality. A 50% loss of 1 million becomes 500,000. To increase the value of 500,000 to 1 million, you need to make a 100% profit. It takes an hour to walk from the first floor of the Empire State Building to the top floor. But if you jump from the top of the building, you can return to the bottom in just 30 seconds.
You can't control the direction of the market, so you don't need to waste energy and emotions on situations you can't control. Don't worry about how the market will change. What you need to worry about is what countermeasures you will take to respond to the changes in the market. It doesn't matter whether you are right or wrong. What matters is how much profit you make when you are right, and how much loss you can bear when you are wrong.
Every time I see a lot of people in the market, they can bargain with merchants for a long time because of the price of a piece of clothing, or go shopping for a long time, but they don't think about what investors want to buy for more than a few minutes. This is The common denominator among many people is that it is by no means what a person who wants to do something big in the investment market does. If you want to make a lot of money in the market, investors must be cautious and guard their accounts like walking on thin ice.
There is a clear operating system when entering the market:
(1) How much money are you prepared to make in this market;
(2) What is the maximum loss I can accept, and if the market retraces, how much loss will I have to get out of immediately;
(3) I must pocket a fraction of the profit I make from each operation;
(4) Gradually increase positions, avoid full position transactions, continuously increase the profit stop loss level as profits rise, and never let the profits you already have turn into losses;
(5) Always give yourself another trading opportunity and operate strictly according to your own trading system.
3. Trend is your best friend
The biggest enemies of trading are waiting patiently for market trends to become clear and overtrading. The bull market does not end in one day, and the same goes for the bear market. Trading in the currency circle is a place that I have seen not open for three years and only open for three years. As long as you have patience, wait for the market trend to come clearly, find the leading stocks, and hold them until the end of the entire bull market, and do not over-operate, then you You can get unexpected profits. When the trend comes, respond to it and follow it. When there is no trend, observe it and be still.
Over-trading operations are also the enemy of investment. Those traders who run the price difference can only earn a small sweet profit, but not big money. Let’s calculate the handling fees of over-trading: Today’s virtual currency exchanges are all According to the two thousandths of buying and selling, completing one transaction is four thousandths. If a trader operates once a day, and the year is calculated as 365 days, then the trader will lose 4/1000*365 due to handling fees. =140% You didn’t see it as 1.4 times. Think about it, Buffett is still working hard for 30%. Your transaction fees for a year are 140%; there is another thing that traders often ignore. The more frequently a person enters and exits the market, the more frequently a person enters and exits the market. The easier it is to change your mind frequently, as the saying goes, if you do more, you will make more mistakes, if you do less, you will make less mistakes. If you do not do well, you will also miss the big market trend due to too many transactions;
Make decisions before taking action, and determine the coming trend based on the obvious price breaking points, popularity atmosphere, trading conditions, and capital inflows provided by the market. You must maintain a broad vision of the market trend and do not be fooled out by short-term fluctuations.
4. Psychological quality is the core
Currency trading is against human nature. This is a game in which only a few people can make profits, while the vast majority of people just contribute funds to play along. In trading, you need to have excellent mental quality, and you must have a layout and mentality of a liquidation universe. If you enter the market with 10,000 yuan, and your mind is pounding because of the rise and fall of 100 yuan, then I advise you. If you leave this market as soon as possible, this will also ensure your personal safety. If you have a big mentality of wanting to make 100 million, then the increase or decrease within 1 million will not affect your mentality, because what I want in the end is 100 million, and 1 million is not within the scope of my consideration. Only in this way can I Opportunities for big profits.
Trading is not only a game with big institutions, bankers, and retail investors, but also a game with yourself. As the ancients said: It’s fun to fight against the sky, and it’s fun to fight against the earth. The highest state of struggle is to fight against yourself, and currency speculation is your responsibility all the time. In the process of psychological struggle, I keep asking myself, should I sell or keep it at this price, and what should I do? This has always been a process of psychological game, which requires a strong psychological quality and a little bit of psychology. To have good quality, you must also ensure good physical condition. Good health is the key. Why do people live? Living is nothing more than the process of having a healthy body and coming to the human world to continuously refine one's soul.
5. The trading method that suits you
Tao represents the logic of things, and art represents methods. As the saying goes: if there is Tao but no skill, skill can still be sought; if there is skill but no Tao, skill can still be found. The birth of a trading method represents the composition of a person's knowledge, insight, and courage. Through continuous ups and downs in the market, he finally understands the basic logic of trading, which is in line with the rules.
The biggest enemies of investors are: hope, fear and greed. If you have your own trading method, you also need to overcome the weaknesses of human nature, hope, fear and greed. When the market is about to fall, when it should be full of fear, investors feel that there is nothing and they are full of hope; when the market is rising, they are afraid of a correction, when they should have the greatest hope in the world, they start to be full of fear. This is These are all reasons why traders cannot make big money.
Have your own trading method, form a trading system, help yourself overcome the weaknesses of human nature, let the profits run when the market comes, and stop the loss when the funds are in losses. Only then can a person gain great wealth. fundamental.
Finally: Only this type of people make money in the currency market. It does not depend on the technology and methods used, but on your self-discipline. Sometimes currency market trading is not a battle of strategy but a battle of time and patience. .
