My trading history is close to 26 years, which is incredible! My first reaction when I think of this number is – I'm old!
At present, my trading profitability is stable, and there are often new people who come to consult some trading methods. I'd love to share with everyone what I've learned over the years. Trading needs to be experienced by yourself in order to have actual growth, and with the right guidance, you will not waste time and energy to take detours. Trading skills are easy to learn and will be taught to you online or in trading classes. What's really hard about it is the mindset and mindset of the trader. In my opinion, the next 10 lessons I share with you have been leading me to trade in the right direction.
1. Be a defensive trader
The mindset of novice traders can be wrong at the beginning, as they are bent on making money as quickly as possible. But the more realistic mindset should be: try to protect your money. The two mentalities cannot coexist, and if you just want to make money as soon as possible, the faster the money slips.
One rule of the sports arena also applies to trading: offense is the best defense. Here, it refers to trading only under conditions that are favorable to you, other times protecting funds and staying away from the market. The luck of a novice may be reflected in the first few trades, but the luck cannot last.
If you have a gun, don't waste bullets unless you're absolutely sure you'll hit your prey. By the same token, retaining financial strength allows you to seize a truly advantageous opportunity when it arises. In trading, protecting your own funds as much as possible is the key to success. As long as you can control the risk, then even if you encounter a strong signal and eventually lose the trade, you will not be greatly affected by the funds.
2. Constantly viewing charts and monitoring transactions will only hinder transactions
Most of life, interfering too much doesn't work out well. If you want to control the transaction all the time, it will give you a look.
How many times have you looked at it and couldn't help but add a position, or leave the market prematurely? In hindsight, did you feel too impulsive? Such unplanned moves are the reason why many people lose money.
The easiest way to do this is to set up a deal and forget about it. I stress this to newbies almost every time, because it's one of the biggest lessons I've ever learned: the less you interfere with trading, the better. Simply follow your trading plan and let the transaction finally present the result, which is the real trading principle.
3. The result of the previous transaction will not affect the next transaction
This is a very, very important truth, and many people often forget it. They are easily influenced by the outcome of the last trade. You know, every trade is very different, and the results of the trade are randomly distributed. Let's say you trade 100 trades, and the profit and loss may be half. But their distribution cannot be so even. There may be 5 or 10 losses in a row, and if they affect you, then the profits that may arise next are difficult to achieve because of your bad mood.
Also pay attention to the fact that after a profitable trade, your overconfidence will be the same as your fear after a loss. Overconfidence makes people willing to take too many risks, and in the long run, its negative effects are terrible.
4. Simplify trading and you will get more
Everything is measured. The problem with many traders is that they do things too much. They over-analyze the market, over-interpret the market, over-think about over-trading, and in short, do a lot of unnecessary things. There are also many things to learn to be a trader, including learning to be properly "lazy".
First of all, I would like to tell you that for a period of time, the favorable signals that appear in the market are limited, even rare. Most of what you see and hear is probably just "market jamming," which is noise and useless to you. You have to learn to filter these signals and then filter out what's really good for you, so there's usually not much chance for you.
Second, it is recommended that you learn the mindset of a hedge fund trader to trade. They control millions or hundreds of millions of dollars, but the transaction is very principled, like picking diamonds in the sand, and they only choose the opportunities with the highest return on profits. Specious signals such as "maybe" and "as if" persuade you to give up. In my 18 years of trading experience, the best deals are always the most obvious and intuitive ones.
5. There should be a clear exit plan before entering
There is no boss in the transaction to tell you what to do. You have to make your own rules, which means you have to discipline your behavior and hold yourself accountable for trading. Many people lack this self-control and often lose their way.
Before trading, our most important task is to determine where to play from. It took me years to realize that appearances are more important than admissions. As far as I can see, a lot of people's appearances are willful, and the result of this is that either the profit is small or the loss is large. The best thing to do is that you need to establish a strict take profit and stop loss plan.
6) Most of the time, you should stay away from the market
Keeping my words in mind, over-trading is definitely a good way to waste money.
I recommend that you use the big time frame to see the market. It's like a natural filter that filters out a lot of distracting information. Then you strictly follow your own plan to execute the transaction, which directly ensures that your trading opportunities are streamlined and efficient. In my opinion, intraday charts are the most suitable for technical analysis.
7. Do you sleep well at night?
The best way to judge how stressful your trading is is to take a sleep test.
If you invest too much risk in each trade, your mind will be captured by the deal and you will think about it for everything. Are you lying in bed, are you still worried about trading? Suddenly woke up in the middle of the night, and then couldn't help but check the market with a computer or mobile phone?
These situations indicate that there is a serious problem with your transaction. Risk management is critical to sustaining long-term trading and profitability. If you're already anxious to the point where your sleep is getting worse, it means you're already trading too risky. Quickly adjust your position and the investment of each trade. Everyone should be cautious about this.
8, before the real trade, you have to do these two things
In order not to let your trading become gambling, in real trading, you must have a trading strategy. And until you have full control of your strategy, you'd better not be busy trading. Remember, don't try to use several different trading methods at the same time, this will not help at all.
In addition, I must re-emphasize the importance of money management. Without money, you can't trade for long, let alone make a profit. Therefore, you have to understand the importance of money for trading. Don't waste your money at will.
9. What is your self-control? This is important
There are two sides to trading, one is the rational side, including the strategy, trading plan and money management I mentioned above, and the other is the psychological side. The trader's mentality can be said to dominate the rhythm of trading. Successful traders must be extremely self-controlling.
The most common thing to face in trading is not the problem of funds, but the fluctuations of people's emotions. In a negative mindset, good opportunities are also difficult to produce positive results, which is the biggest trap in trading.
Throw yourself away, and it will devour your sanity step by step. Traders need to be confident, but overconfidence is a very negative emotion.
A person who is principled in doing things must be a good trader. You don't need to show your personality in trading.
10. The more supporting factors, the better
If a trade can get more support, then the probability of profitability is higher. If the trend lines, important chart levels and trading signals are consistent in your trading chart, then the probability of trading profitability is relatively high.
Many traders want to avoid human error and opt for automated trading systems. However, I personally don't like automated trading systems. As long as you can find the trend, watermark and signal unity point, you are not afraid to make a bad trade.
Futures should not be gambled every day, and the wrong stop loss should be lost.
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Breakthrough
The flat breakout should be followed closely, and the breakout price should be stopped.
Once the wind changes direction, the backhand is resolutely false and true.
Trends
In the long run, it is necessary to look at the weekly and monthly line, and the inflection point intervention is the most critical.
The trend is formed without light change, and the wind must sail the sails.
Shock chapter
The long and short moving averages are entangled, jumping up and down to see the interval.
High throw low suction has a stop loss, and finally to the day of the box wear.
Information
There are thousands of true and false information, and the technical trend is included;
Both ears do not hear things outside the window, and only look at the signal.
Mindset
Intraday fluctuations are difficult to grasp, and it costs money to chase up and kill falls;
The avenue is very good for the people, and the long line is a joke about Jin Fei.
Against the trend of heavy warehouse sleepless nights, light warehouse homeopathic idle;
Long-term survival wins huge profits, steady profits and seek safety.