Chapter 3 step 1

Transactions can help achieve freedom, so they attract us. If you know how to trade, you can live and work anywhere in the world without having to deal with people. Transactions attract smart people who like this game and are not afraid of risks. Before you take a risk, you must understand that in addition to passion, you must thoroughly understand the reality of transactions.

　The fair frustrated you. To survive and succeed, you need to form an effective transaction mentality.

The fair will change your mind. To gain advantage in the market, you need to master excellent analysis methods.

Transactions require excellent mathematical capabilities. If a blind math cannot manage risks, it will be kicked out.

　　Transaction psychology, technical analysis, and capital management-if you have learned it, you will succeed. However, Let's first look at the external obstacles to success.

The purpose of setting up a trading market is to snatch money from most people. Stealing is illegal, but the market will help people who do not understand and frame people who do not understand. Let's look for obstacles to success and try to eliminate them.

External Barriers to success

An investor can start from nothing and buy several thousand yuan of stock. If he buys and holds it, the Commission and other fees will not affect his success or failure. Traders have more important tasks. It seems that a small amount of money can destroy them. The smaller the account, the higher the risk. Transaction costs will become insurmountable obstacles to winning.

Transaction Cost ?!

New users do not think of this problem at all, but the transaction cost is the primary cause of the loss of traders. By changing your plans and reducing costs, you are more competitive than the public.

I have a friend whose 12-year-old daughter recently suddenly came up with a good way to do business. She is called the Guinea swine factory. She printed a leaflet with her mother's photocopier and pushed it to her neighbor's mailbox. Guinea Pig is popular among children nearby and costs 6 yuan, but she can buy it at 4 yuan in the central market. This girl is dreaming of her own profit. Her mother is a trader. Her mother asked her how to get back from the Sydney suburbs where they live to the central market. The girl said someone could drive me.

A child may take a free car, but the market will not give you free things. If you buy a stock for 4 yuan and sell it for 6 yuan, your profit is not 2 yuan. A large part is the transaction cost. Amateurs always ignore the transaction cost, while professionals are very concerned about the transaction cost and try their best to avoid it-unless they want to get the transaction cost from you, they will like the increase in the transaction cost. The newbie started the guinea pig factory and couldn't understand why he bought it at 4 yuan. He sold it at 6 yuan, but the result was still a loss.

A novice trader is like a lamb walking into the Dark Forest. He is likely to be killed. His flesh-that is, trading funds-has been snatched by three people, including brokers, professional traders, and service companies. Everybody wants to catch mutton. Don't be the lamb-Think about your transaction costs. There are three types:Commission, slide loss, and related fees.

Commission

The Commission looks very small. Many transactions ignore commission, but if you add up the Commission, you will find that the broker has earned you a lot of money.

Brokerage companies charge 20 yuan for 5000 shares. If your account has 20000 Yuan, you have bought 200 shares worth 100 yuan, and the 20 yuan service fee is equivalent to 1 ‰. When you sell the stock, you have to pay the service fee, which is equivalent to 2 ‰ of your funds ‰. If you trade this once a week, you will find that your broker has earned 1% of your funds at the end of the month, whether or not you make money. If this is the case for one year, your Commission will be 12% of your funds. This is a lot of money. Professional fund managers are already very happy with the 25% annual revenue. If you want to pay 12% of the annual Commission, they will certainly not be able to achieve 25% of the annual income.

And so on.

Look at the small traders who can afford only 100 shares of 20 yuan. His purchase price is 2000 yuan, but he also needs to pay 20 yuan of service fees and withdraw 1% of his funds. When he closes his position, he will have to pay a service fee, and 2% will be unavailable. If he deals once a week, the service charge will become 10% of his funds at the end of the month, and the service charge will exceed 100% in a year. The average annual income of the Great George Soros is 29%. If his service fee is 100% RMB per year, he should not expect 29% RMB per year.

The more funds you have in your account, the less fees you pay, the higher your odds. A lot of money is a great advantage, but no matter how large your position is, do not trade too much. Every transaction and every seemingly cheap service charge are obstacles to your success. Design a system that does not require multiple transactions.

I have seen some futures traders who provide comprehensive services to brokerage companies with 80 yuan as a back-and-forth transaction service fee. They say this is a wise suggestion, but any professional will tell you that there is no chance to make money to pay a round-trip price of 80 yuan. Why does someone pay such an outrageous service fee? After the lamb enters the forest, it is afraid of the big wolf, that is, professionals. Therefore, he asks someone to protect him, that is, a brokerage company that provides comprehensive services. Once you calculate it by yourself, it is obvious that you would rather give yourself to the big gray wolf than let others protect your skin.

The advice of some brokerage firms that provide comprehensive services is valuable. They provide good news, and their service fees are not excessive. The key is that they only accept large funds, because large funds can bring great business. If they know that you have 1 million of your accounts and the transactions are still active in the past, they will love it.

If your account has five or six digits of funds and trades several times a week, do not waste time or money in expensive brokerage companies. Their protection is false. Find a cheap, reliable company that does not provide unnecessary services. You can contact the company over the Internet or by phone.

Slide loss　　

The slide is the price difference between the order price and the actual deal price. You may place an order for guinea pigs at a price of 4 yuan, but your transaction record shows 4.25 yuan. How can this happen? Then the guinea pig rose to 6 yuan, and you placed an order to sell it. The transaction price is 5.75 yuan. Why? In daily life, we pay by the price. At the guinea pig factory, you were all taken for sale. Even worse. For an active transaction trader, the amount of money to be deducted will not be small. Who took the money? For professionals, slide points are the secret to making money, and they will keep this secret strictly.

There are no fixed prices for stocks, futures, or options, but they have two fast-changing prices-the market price and the market price. The market price is a buyer's quote, and the market price is a seller's quote. Professionals like to satisfy Anxious buyers and sell them to him at a higher price than the market price. Greedy traders worry that the market is going up and immediately buy stocks from professionals at high prices. This professional deals with sellers in the same way. If you can't wait to sell-sell at a lower price than the market. Anxious sellers are willing to accept excessively low prices. The slide is caused by the sentiment of market participants.

A professional is sold to a buyer and bought from the seller. He is not a volunteer. He is doing business, not a charity. Make slide spreads in fast-moving markets. A professional also needs a high cost to find opportunities in the purchase and sale orders of the market. He needs to buy or rent a trading seat and install expensive equipment.

Some orders do not slide, and some orders intentionally slide. The three typical order types are price order, market price order, and stop loss order. A price order limits the price, that is, "buy 100 guinea pigs at a price of 4 yuan ." If the market is calm and you have to wait, you will wait for the price. If the stock price falls below 4 yuan when you place an order, you can buy at a lower price, but don't expect this. If the market has risen to more than 4 yuan, your price order will not be sold. The purpose of a price limit order is to control the price you want to buy or sell, but it is not guaranteed that the deal will be made.

A market price list allows you to buy or sell quickly, that is, deal immediately regardless of the price. Yes, but the price is the real-time transaction price. If you want to buy or sell it right away, it's hard to get the best price-giving up control means losing money on slide points. The market price list of anxious traders becomes the bread and cheese of professionals

When the market reaches your price, the stop-loss order becomes the market price. If you have bought 4.25 guinea pigs at 100 yuan and want to raise it to 7 yuan, you can set a stop loss at 3.75 yuan. If the price falls below 3.75 yuan, your stop-loss order will take effect and immediately become a market price order, and the deal will be made immediately (Zhang Yu Note: China does not have, only futures are acceptable, but China's futures do not have a stop loss function ). You will be playing, but in the fast-moving market, you will suffer a slide loss.

Generally, slide loss is more serious than service fees. In transactions for a living, I estimated the loss of two people. I thought this was an explosion in the book, but few people seem to have noticed it. Because of greed and fear, people like to deal immediately, rather than focusing on long-term financial interests. The theory of market effectiveness still makes sense.

When you place an order, you need to know what you want to control-price or time. A price limit order allows you to control the price, but cannot guarantee a deal. If you place a market order, the transaction can be guaranteed, but the price is not guaranteed. A cool and patient trader prefers a price limit order, because those who prefer a market price order often suffer a slide loss.

Some trading companies promise to teach traders the advantage in market quotations within days. Their technology is not guaranteed to be successful, and the handling fees produced by frequent transactions result in no advantage. People spent a lot of money on buying deep fluctuations (Zhang jiannote: similar to the top view in China), but I didn't see their trading level improving.

Making a transaction is like jumping into the river. Both opportunities and dangers are in the water. If you are standing on the shore, you can jump there, but it is more skillful to come up from the river. Maybe you will find a good start point-your profit target price, you can place a price order. You may want the river to take you where you want to go. It is best to use a stop to protect your position. Doing so may increase your profit, but it will also increase your slide loss.

The best price order. There may be opportunities lost sometimes, but there are many other opportunities. The river has been around for centuries. A serious trader uses a limited price order to access the site and cash profits, and uses a stop loss order to protect his position. We should try our best to avoid slide losses and improve our long-term success opportunities.

Chapter 3 step 1