The truth about the deal: there was nothing on the top of the hill

Real traders will find that trading is so simple and repetitive, years of pursuit will find nothing on the top of the mountain, but you will still find the mountain climbers in the mountains! You tell them loudly that the deal is simple, you have too many equipment to climb the mountain!

What is the truth of the deal? Please see below ...

Trading is one of the truth: trading and market analysis of the relationship is not big!

Many people like to analyze the market, there are a lot of special forum like to draw lines, like to analyze the market, especially some veteran like the results of their own analysis published in the Forum. My point is: In the long run, your drawing is of little use. Because the real trader's trading basis is the same, that is, the open position of the transaction is expected to be consistent!

The second truth of the deal: The deal is "expected", and this "anticipation" is proven to open the position!

Why many people say "do not counter-trend to open a position", but the results tend to counter-trend to open a position (the loss of a position is called contrarian). Because in a market that is accelerating, his "expectation" is that it will fall next. But, without waiting for the real fall of the market, it began to open up empty! This is two ways of thinking: You "expect" will fall, but the eyes see the market does rise! The solution to the contradiction between the two is: Find a way to confirm "expectations"! For example, you "expect" The bean pulp will fall, but can not rush to open a position, you must be patient waiting for the bean pulp below an important position, your "expectations" before the confirmation, in order to open a position! In other words, there is a process between opening and "anticipating" that is "expected" to confirm!

Trading the truth of the third: trading "breakout" is often the safest!

"Breakthrough" represents the release of energy, represents the deduction of kinetic energy, also represents a trend of fluctuations! This is the most important, but also the most effective way to open a position!

Trading the Truth Four: Build trading rules!

The freedom of trading is often the most desirable for traders! However, the world of trading is not free, and the opposite of trading requires discipline and restraint! Building trading Rules is the first step for traders to mature, and also the necessary work to get started with trading! Trading rules are characterized as follows: open positions based on consistency, simple trading rules, the stop loss in line with the psychological ability to bear, take profit and the position of reasonable basis!

Trading the truth of the five: Stop!

This is the most important part of the trading rules! It's also a watershed for traders to mature! There is no reference to stop loss, but the tendency to limit the amount of stop loss in trading rules is always right! The stop loss standard must be set by itself, you cannot expect anyone to give you the standard, the trader must build his own stop loss standard, but the stop loss based on the pressure level and support level is often the most effective.

Trading the truth of the six: Stop loss controllable, profit is not controllable!

Trading includes both ends: One end is a stop loss and one end is profitable! In trading, we can really control the end of the stop! The end of the profit is always uncontrollable! So, in the trade, we have to stare at the stop loss. Always pay attention to stop loss and risk! As long as you control the stop loss and the risk, what is the end? Everyone understands! The biggest secret of trading and the Law of wealth: Control stop loss, the smaller the better. If you can control the stop loss, that success is not far from you! Trading on the other end, profit! When you do the right thing, the list floats as long as possible! Float as long as you can! When you want to close a position, be patient! When you want to be conservative, please be greedy a little more! However, you must always understand a truth: profit is not controllable, your profits can be swallowed at any time! When necessary, we should tighten the profit!

Trading the Truth Seven: trading is a simple thing, do not make it too complicated!

Real traders will find that trading is so simple and repetitive, years of pursuit will find nothing on the top of the mountain, but you will still find the mountain climbers in the mountains! You tell them loudly that the deal is simple, you have too many equipment to climb the mountain! However, trading is actually a simple matter, the forum of those who make the deal too complicated people actually do not understand this truth! Deal with complex people have many characteristics, in fact, the most important feature is the market analysis as the basis for trading, over-valued market analysis in the position of trading! To be honest, if you use market analysis as the basis for trading, then the market must be complex! Because the market analysis with too many subjective components, you are the subjective to deal with the market complex, the outcome can be imagined! The simple thing about trading: if you want to complicate the market, it's incredibly complicated, and if you treat it with a simple heart, it's an idiot! Using certain rules to deal with the complex market, the market is simple! Traders will also feel extremely happy.

The truth of the deal is eight: The trader's focus is on the financial curve, and all the goals are "draw the line"!

The trader's goal is to "draw the line" and draw a smooth upward curve of the capital, which is the trader's goal! Analysis of the market, talk about Buddhism, on Zhouyi, painting line master, forum painting Line celebrity Jiangshan, you ask them can draw their own financial curve? Ask them what the financial curve looks like. How does the financial curve relate to these so-called analyses?

Trader, please focus on the analysis of their own financial curve, put on their daily drawing of the money curve! On a line that accompanies us every day to keep us awake and struggling. No matter how you draw, this is your own money curve! Only you can correct the angle of the drawing line, only you can correct the way to draw the line! Take your attention away from the ugly faces of the celebrities who draw the line to analyze the market, focus on their "line", this is the key!

The capital curve focuses on 2 characteristics:

1) Does the curve rise or fall? The curve falls, there must be a reason, what is the reason? Find yourself!!! The process of the search is the process of progress, what may be the reason? A) do not know the stop loss, the stop loss when there is no stop? b) Do not understand the win, the time to win the game did not win; C) when should stop loss, when should let win? Find your own list, and look at your own financial curve to see which list is causing the financial curve to fall? See which list is the ascending curve? Are these lists in line with the entry/exit basis? Can I repeat the next time I come in and out of the warehouse? Why

2) is the curve smooth? Smooth curve means a small drawdown rate! Drawdown rate, this is a very important factor! On the curve, what is the reason for the analysis of the large capital drawdown? Is the stop loss big? Are the positions large in size? Or is there a continuous stop loss? Or is the mood out of control? Analyze the financial curve steep down when the mentality and trade, this help you the most! This is more than looking at the forum so-called celebrities of the line master of the analysis of your help much, much bigger!

The truth of the transaction nine: The trader should pay attention to "you", your own!!!

Focus on yourself, and this is the best thing a professional trader should do! Focus on the market and focus on yourself, which is the most important? Which is the most important? It might be a difficult thing to figure out the problem. Because both are important, what is more important if you want to distinguish between them?

I choose to focus on their most important! Reason: Oneself is controllable, the market is uncontrollable! For a market that cannot be controlled, it is more realistic to take control of yourself! Controlling yourself means facing an unrecognized market, and I can choose to take control of my coping skills! I have no control over the market, but I can choose to wait and see, I can choose to look at the market, I am only in the market that I can understand, the unfamiliar market or the market that exceeds my cognitive ability means that I have no control, it means risk, I choose to take control of myself-not doing or watching the play! Do you understand? Focusing on yourself is more important than focusing on the market!

But it's also very important to focus on the market! After all, the process of trading, in fact, is an unknown field (market) to take a rationalization approach to the process! What form or behavior of the market can cause us to react, and thus inspire us to want to trade impulse, this is need attention, also need training!

Trading the truth of the Ten: a deep understanding of the process of trading, trading is trading!

Trading is a trade, what is a trade? The process of trading: the form of a market (market behavior)-"expected" (trader behavior)-Expected confirmation (market behavior causes a trader's behavior)-open position (trader behavior)-Set stop loss (trader behavior)-Add Jiancang (market behavior causes trader behavior)-closing (market behavior causes trader behavior)! The process of trading, in fact, is the process of interaction between traders and market behavior! Remember: The process of joint action!

In the two behaviors of trader behavior and market behavior, who is active and who is passive to the trader? Will the market listen to us? Will the market respond to our likes? No, never! For us, we are passive at all times, and the market behavior is really active! We can only follow the market behavior to make the most appropriate and reasonable response, such as stop loss, open positions, Jiancang, or close the position! In fact, the process of trading is nothing more, like a leaf falling into the water, following the flow of water, according to the flow of the market, to make the most appropriate response, is the trader's most should do!

The crux of the matter: how to make the most appropriate and reasonable response according to the behavior of the market? What is the most appropriate and reasonable response? There's no use for the most appropriate and reasonable response?

As far as I am aware: no, never can you make the most appropriate and reasonable response? Because our perceptions are always limited? However, we can make "appropriate and reasonable" response!!! What is the "right and reasonable" response? What characteristics should these reactions have?

We give these "proper" responses, defining a nice name: trading rules, trading systems, and everything involved in trading! When I have time, I will thank you for these "reasonable" reaction processes, as well as the construction and basic rules of some common trading systems!

The truth about the deal: there was nothing on the top of the hill