1
In the securities market, there is a famous saying: If you want to make money, first learn to fear the market!
This phrase is as familiar as "The trend is your friend.")
Almost all players who enter the securities market, whether you are playing stocks, futures, or anything else, will be repeatedly warned, and they will continue to warn others with this sentence.
But most people's fate with this sentence is like the slogan hanging on the wall of company culture, shouting it every day before going to work, but in fact, no one will take it seriously.
Only when the blow of reality comes, watching the balance in the account and their own wealth disappear overnight, may suddenly realize the meaning of "fear of the market".
Just two days ago, I just sent off an old friend who has been playing in the futures market for more than ten years.
Twenty days ago, this so-called "four veterans" with "experience, technology, news, and funds" still made huge profits in the face of the crazy behavior of coal bulls.
In fact, he did have these profits for a while, and billionaires in a frenzied market seem to be a small target.
But in the blink of an eye, accompanied by the crazy collapse of the black series, in the blink of an eye, all the heroic ambitions turned into the east flow, and the results of more than ten years of fighting became clouds.
The only thing that still belonged to him was a cold body in the morgue and a thin autopsy report.
There were no geese left behind, and there were no leopards to leave their skins, leaving only a pair of orphans and widows at the door of the morgue, and a huge debt caused by the account.
The lawyer's final suggestion was to let the widow give up the right to inherit the inheritance, because only by refusing to inherit the inheritance could he take the road of death and debt.
It is ridiculous to think that twenty days ago he was still worth tens of millions, and twenty days later, his wife and children were able to get out of the house, which was already the greatest protection and benevolence of the law for them.
Why bother?
2
I've tried to dissuade him many times and I said your position is too big and now the market is too crazy to really fit to continue.
Even if you don't want to go, don't add more positions! Leave a glimmer of retreat anyway, imagine your wife and children!
But at the same time that I said this, I also understood how pale these persuasions should be in the face of human nature.
When the goal of a huge millionaire is at hand, when profits seem to be at your fingertips, when the daily quotation board is like a mad dog inflating your wealth like a mad dog.
Driven by hormones and dopamine, can people's intellect control their behavior?
This issue has been discussed in the securities market for more than a hundred years.
From the bursting of the tulip mania to the collapse of the South China Sea bubble, from the Ponzi scheme on the California coast, to the end of Livermore's hate.
Human nature is always repeating yesterday's story, and he has finally chosen the path that most people will choose.
Not only did he not leave the market, did not reduce his position, and even threw more funds into the market one by one, after all, the market is too crazy, a day a stop board.
If you count 10 times the leverage, it is equivalent to doubling your wealth with the offer in one day!
Who refuses this temptation?
So his costs and positions are getting higher and higher.
Until suddenly, the exchange issued an announcement about increasing the margin ratio of coal.
That is really "a night of frost, a hundred birds mourning", the deposit was directly increased to 40%, what is this concept?
This means that if his leverage at that time was 10 times, then in an instant, the maximum amount of funds he could mobilize was reduced by nearly five times.
There is no need for any market to collapse at all, just the existing positions will burst his account on the spot like hot steam that expands in heat.
Of course, he is not the only one who was blown up on the spot in the market, almost all the brokerage investors in those days were frantically flattening the positions of their customers, and some of my friends in the circle could even receive calls from more than a dozen securities companies a day.
The content is either to make him make a margin call or to inform him that the account has been forcibly closed.
But to be honest, the buddies who were forced to close their positions before the day fell to a stop, they were lucky!
The brother's luck is obviously not so good.
3
You know, sometimes, what traders are most afraid of is really not what can't guess the future market, but a traffic jam!
A large number of long closing orders are like a refugee tide wrapped around you, and will put you dead on the stop price.
I don't know how many people here have experienced this kind of scene and experienced the despair of not being able to cut even the flesh.
You can only boil, boil, boil...
While staring at the quotation board with a sweaty head, he prayed over and over again that a receiver would come in and eat your order, so that you could successfully lose the money.
Until the next few days, there was a moment when the stop plate opened, but when you look back, you suddenly find that although you can cut the meat at this time, but...
You've lost so much that you can't afford it.
If "strong man breaks his wrist" describes the determination and fierceness in the face of extreme losses.
Then, at this time, you will face a more unbearable choice than "strong man breaking his wrist", that is, there is no choice!
You can only carry it to the end, hoping that the luck in the dark will take care of you one last time.
Because you can't cut off your whole body and leave only a finger on your feet, right??
At this time, to discuss human nature, greed, discipline, in fact, it is meaningless!
Because of life or death, it is already half a point out of the mind!
Only those who have not experienced such a scene can stand on the shore and discuss these empty topics.
But only the poor man who has survived this vortex of death will deeply understand why it is hollow.
Because everything, when you start to throw yourself into this big speculation, you are already doomed, and all the consequences now are only the price of the original choice!
Any remedy must be too late, and what is really useful is not to put yourself in these dangers in the first place.
Everyone says to "fear the market", but what exactly is reverence?
Reverence is to start by not trying to challenge each other's bottom line!
Reverence is to not consume the pulse of the other party in the first place!
Reverence is not to think that the other person is not good at the beginning.
Reverence is that it is more beautiful to think about what posture to use to be beaten at the beginning.
Reverence is to never believe any lies in the dangers of wealth!
Awe is, don't bet your life with someone who can kill you in a minute, no matter how high the odds!
Because you are facing the market, he is a tyrant with clear rewards and punishments!
Any right decision you make will be rewarded as you deserve, but you should not try to get a fluke in front of it, because as long as you make a mistake, no matter how small, you cannot escape the blow from the market.
Similarly, Market is a near-perfect teacher who can teach you everything, and as long as you can afford to pay the tuition, he will go out of his way to teach you.
However, his only shortcoming is that he does not care about the lives of his students at all...
So be sure to learn to be in awe!
Never feel like you can do it, because those who drown can swim!
If you want to play in this market, if you want to take the profit home, then you must use all your caution to fear a person who can kill you at any time, and never care about your existence!