1
About the market
If the analysis of the market financial market is endless, the economic trend, political influence, historical trend chart, industrial prospects, etc. can be studied and studied in the end, which is very simple, just the final judgment of buying or not buying, selling or not selling.
The market is not the real world, it is composed of the minds of all participants, and investors enter the market with prejudice. And bias is the key to understanding the dynamics of financial markets. When bias has an interactive impact on the investor community, it will have a herd effect. The market is a result, he is beyond everyone's understanding of something, no one can accurately predict the market...
In terms of understanding the market, I very much agree with Soros's opinion. The so-called market is composed of the mind, that is, the market is composed of human emotions, and the seemingly rational market is essentially very irrational and full of prejudice.
Prejudice is the driving force of the market, there is no bearish bullishness, how can there be a market up and down every day? Essentially, there will be no market. Therefore, prejudice (human emotion) is not only the driving force of the market, but also the root of the existence of the market!
In this way, it is easy to understand that in the market, the long and bearish crowds are betting. No matter what system, those who have profits will inevitably have losing people.
We can't predict the outcome of the bet! Because the strength of both bulls and bears is often changing, the so-called more killings and short killings. But the inability to predict does not mean that we cannot grasp the present moment. Otherwise we will not be able to trade rationally. To achieve rational trading, it is necessary to jump out of the circle and keep a distance from the bulls and bears who are entangled in the circle, so that you can see clearly the strength of the moment, and then follow the strong side to easily make a profit.
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2
About patience
Many masters emphasize the need to be patient when making trades, perhaps rightly, and wait patiently for the opportunity to arise. But the problem is that they never mention what kind of opportunity arises to be considered an opportunity to appear. In this sense, the phrase "waiting patiently" has no guiding significance for operation. In fact, the education of investing, speculating or trading is full of specious and non-concrete nonsense.
To be honest, in trading operations, no patience is required. Patience is a conditioning emotion. In trading operations, what is needed is the word "meditation". Meditation is also an emotion, but it is also a realm, so such an emotion is not restrictive and is a natural manifestation.
The reason why most people cannot sit still in trading operations is because they cannot grasp the future trend of the underlying they are trading, that is, they cannot grasp the uncertainty (risk) of the future, which in turn produces subjective emotions such as fear, greed, and hope. Under the domination of these subjective emotions, the operation becomes unruly, which is the most fundamental cause of loss.
If you can grasp the future risks in trading operations, I believe most people will be able to do it calmly. For example, I promise someone that I will pay for losses, and I am very comfortable believing in this person's trading operations.
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Important things in trading
The most important thing in trading
One: Only hold the correct position.
Two: Increase the number of correct positions.
Three: Sell all of them within two or three days after putting a huge amount.
4
About trading positions
Trading under the action of leverage becomes relatively risky, many investors in the specific trading process will always suffer from gain and loss and lead to transactions can not be carried out smoothly. In fact, a more important aspect of this mentality is that the investor's position is too heavy, so in the subconscious, he is always afraid that if the operation is wrong, he will bring losses to himself. Then the wiser way to operate at this time is to reduce the position.
When the floating profit is first closed half of the position, the remaining undoubtedly the cost will be lower, if all flat, because we can not determine whether the trading market will continue to pull back or will go higher, so because the market trend is unpredictable, so the action of reducing the position is only to optimize the transaction cost and enhance the trading mentality.
We can understand the reason for the reduction in this way: if the investor's position will not lose a lot of money no matter how it falls, it is natural to have the best mentality and can be assured to sit on the mountain and watch the tiger fight.
An effective way to overcome the trade-winning mentality is to appropriately reduce your position, which is to give yourself time and space and more chips to find a more suitable position for yourself. In this way, the mentality of trading will naturally be relaxed, which can be said to be a good way to kill two birds with one stone.
Let the profits fly for a while
Learn to make profits "fly for a while"
Many investors always hold an extreme psychology when trading, always expecting one or several transactions to be able to make their own money full of pots, such a situation is almost impossible, because the market volatility is unlikely to allow investors to make large-scale profits without losses. Therefore, profitability cannot be rushed.
Let the profit fly for a while - this is another key factor in the profit of trading, small losses and big profits, we can make money, but we can not be too absolute, even if we have done small losses, not to make big profits, or losses.
The continuation of the trend is certainly not smooth sailing, it is certainly a continuation of the band. Many investors are often not finished by the trend, and they are shaken by the fluctuations of the market. Whether it is short-term or long-term, it should be in the case of no change in the trend, or in the case of no sharp reversal, let the profit list stay longer, unless the trend changes, otherwise, do not be affected by the fluctuations of the market, let the profit fly for a while.
We must learn to expand our profits as much as possible under the influence of the trend, so that it is possible to obtain a relatively short period of time to obtain a better profit effect.
Soros said: Financial markets are inherently unstable, especially in international financial markets, and international capital flows are both prosperous and dry, and there are many heads and bears. Where the market is chaotic, you can make money. Identify the chaos, you may get rich; the more chaotic the situation, the more courageous and careful investors will behave.
The more a situation becomes, the higher it will bounce upwards. The deeper the fall, the more chaotic the market, the more likely it is that a big market will occur. Many situations are often: the market is chaotic, and investors are chaotic. So we often see panic selling pressure, investors bravely chasing high news headlines. Chaos is a formal godsend for calm, objective investors, as it can be an opportunity to pick up bargains and a time for wealth redistribution.
5
Psychological barriers about trading
Psychological characteristics of a failed trader include an inability to cope with high levels of stress, a negative attitude towards life, a lot of conflict within, and a constant complaint about others when things go wrong. Such people do not adhere to certain principles as norms for their operations, and are more likely to become followers of the masses.
In addition, failing traders tend to lack organizational skills and patience. Of course, this does not mean that failed traders have all of the above characteristics, but only that they have at least some of them. The average person is often not mentally prepared before entering the financial market.
Financial markets are a great place to test individual psychological barriers. Most people will eventually stay away from financial markets, while only a few remaining people are determined to find effective ways to do it. The psychological obstacle that such a person finally has to overcome will shift from the market itself to finding a systematic way of operating.
The most fundamental psychological obstacle for traders is how to deal with risk. For example, the two most basic rules for successful trading are: stop loss and hold long, then you may not want to make a small loss, and the result will be a small loss into a multi-loss, and finally become a large loss. And in this case, you have conceded again. Conversely, if you make money on the books, you want to make a profit immediately, and the reason is that you hope that the money in your pocket will not lose money, that is, you will make a small profit but lose a lot of money.
If you think that financial manipulation is just a game, and it is a foul not to follow the above two rules, you will naturally follow the rules. You should reflect on these rules every morning and reflect on the day's trading at the end of the day. If you follow the rules at the end of the day, you should be self-vigilant so that you can take appropriate action in the future.