Long-lasting profit formula for the stock market

As we all know, it is very difficult to survive in the speculative market for a long time. Speculators who can continue to make profits for a long time are indeed rare. many speculators in the market finally left the market with their tired bodies and wounded money pockets. especially the stars who once looked as brilliant as a meteor, they rose fast and fell badly.
How can we define the success of speculators in the market?
First of all, in a long period of time, the profit of a profitable transaction must be greater than the loss of a lost transaction. Success = Profit-loss> 0.
This formula is so simple that it is often ignored.
Stock market investment is a long-term task. occupation. it is not a sprint of 50% meters, but a long marathon. It does not mean that you can earn 100% or yuan at a time, but that you can survive and make profits in the market for a long time. american investment guru Buffett's annual return on capital of about 30% has laid the world's second richest. lee Sen of Bahrain Bank, when it first arrived in Singapore, had a high return on funds, but led to the bankruptcy of Bahrain bank.
Success = Profit-loss> 0. the success formula requires speculators to pay great attention to their own principal, and each transaction cannot suffer a major loss. If there is a loss, they should get rid of the loss position as soon as possible. on the contrary, profitable transactions should be expanded as much as possible.
How can we control the loss of each transaction?
First, investors should not consider how much money they will make before entering the market. First, they should consider how much risk each transaction will bear and how much money they will invest, the amount of money lost to the principal. here is an empirical indicator. Each loss cannot exceed 3% of the principal. if a loss occurs, the next loss cannot exceed 3% of the remaining principal. in this way, even if you fail to judge for 10 consecutive times and cause losses, you can retain nearly 80% of the principal, with full capital to come back. in addition, the probability of 10 consecutive losses is very small.
How can we maximize profits?
Keep in mind that a profitable transaction cannot end with a loss. when you determine the trend correctly and intervene in the market at the right time, you will soon enjoy the profit. At this time, you should not be concerned with the security of your bags, do not be afraid that the market will suddenly fall, this fear is often a strange emotion. You should expect your profit to grow and watch the market rise with joy.
At the same time, your profit stop should be at the recent low point of the market, rising along with the market. never consider selling the highest price. You only need to consider your appearance point when the market trend is reversed. don't be greedy, don't expect the market to return to its highest point and sell again. do not let profitable transactions lose money. This principle serves this purpose.
To make a profit for a long time, you must keep in mind the success formula to reduce the number of visits to the market and increase the success rate of your judgment. you need to know that you are involved in the market, not to prove that you have the ability to do, but to get profits at a low risk.