Impeccable – systematic thinking on the stability of profit models

How to improve the system, eliminate loopholes and defects, and overcome the weaknesses of human nature? It is mainly composed of the following points: model refinement, position allocation, buying and selling procedures, execution, discipline and risk management.

First, the refinement of the model refinement model, the core is that this model is based on the trend, theme, value, emotion, cycle, the leading of those factors and the establishment of growth, this is its core element, that is, its origin, and then based on this core how do we improve, what is the type of model, the buying point of the model is there, the selling point of the model is there, how to configure the position of the model, and what are the uncertainty risks that the model may encounter?

What conditions the model needs to meet to establish, how to avoid, through the market stage configuration, or through position control, or both, and then, whether you have absolute confidence in the success rate of the model, whether you are absolutely executing when operating this model, and whether you are still swayed by market fluctuations and profits and losses during the implementation of the mode between profits and losses.

Absolute confidence in the model, absolute execution, is necessarily needed for success, the use of troops in the market to fight the most taboo wavering, attacking everywhere, and finally waiting for the result is to miss the fighter, encounter various traps, be broken by each, surrounded and annihilated.

Second, position configuration

Position allocation is essentially a strategy of capital management, such as the weight of the position in different markets is not the same, in order to balance the ratio of risk and return, there are also conditions that can not fully determine the certainty of its model buying point, in order to get the first hand to continue to observe and confirm after part of the position intervention, in order to achieve more than enough, or for each holding on the position of the balanced matching, which also helps stability, to avoid heavy position losses, light position small profit special situation.

Therefore, the management of funds and the matching of positions can help investors solve a lot of unstable factors, in the market, there are too many investors when the market starts due to hesitation, at the end of the market due to greedy luck heavy positions lead to a large retracement, there are also many may do a lot of success, but are small positions or small profits selling, when more than successful, begin to ignore the risk of heavy positions into new operations, just a heavy position loss can completely swallow up all the profits of successful operations, Money management and position strategy should not be ignored in any way.

Third, the buying and selling procedure

According to their own operating mode and the generation of buying points in the mode, some can be intervened at one time, some need to be confirmed many times and then intervened in parts, some low suction can participate, some can be confirmed by playing the board, and some can be intervened in the process of time-sharing, and the key is to see the standard that the mode should follow.

For example, some stocks can participate in the low suction, at least the premium after participation can be determined, and the board may not be possible, because the low suction has a premium, but the board is not necessarily, then here in fact, the low suction is good, the board is good, in addition to the buying points that meet the conditions in the model, the premium that should be enjoyed in the model should also be analyzed.

Playing the board, not obsessed with playing the board and playing the board, but some low suction can not confirm the probability of its rise and stop, but the board can be based on the emotional fermentation of the market and other conditions of the production can be hit, low suction, it is not low suction and attachment to low suction.

In the whole dynamic process, the resonance of various conditions will form the conditions required by the pattern, of course, some of the participation conditions with the volume price form as a condition are also one of the conditions, but it is also necessary to cling to the form and form, your pattern, the conditions that meet, is the operation within your system, the same, the sell is also common, for the emotional divergence or consistency, climax and decline, greed and panic should be foreseen.

Especially for some popular stocks, in the divergence, low open to strong sealing board, earth board, large long legs, etc. abound, in the climax, many collective stops after not undertaking to lead to the fall of the fried board, causing emotional panic, the sky floor, the fall stop, etc. is also the norm, the market is good when the morning session should be up and down the limit has been up and down, when the market is poor, the first up and down, a word up and down, the afternoon back to the fried board, and the afternoon after the market considers undertaking but in the divergence of the strong sealing board.

Therefore, the understanding of these helps to hold shares, buy and sell, add or subtract positions, you can integrate it into your conditions to participate, coupled with the understanding of emotions, in fact, is the understanding of human nature, will help to improve the operating system and maintain a good operating mentality, follow the market, is to see the mainstream direction and emotional evolution, but as people follow the clouds, in fact, follow people's emotions in motion, it is not really following the market. Understanding emotions and using them should be integrated.

Fourth, execution

When the market opportunities and conditions meet your mode conditions, execute the procedures of the trading system, buy or sell, increase or reduce the position, take profit and stop loss, when the market meets the conditions in the dynamics, it is natural to perform the operation within the system, so that you will always grasp the initiative of the operation in your hand, not because of the fluctuations of the market and follow the market fluctuations, you can not control the market, but you can control your behavior, you grasp the initiative, the fluctuations of the market will not bring you into a passive response state.

Fifth, risk management

After the extreme climax of short-term emotions, there is often no immediate risk of a big fall, experienced people will begin to control the position and withdraw, when more people gradually realize, panic will come as scheduled, so risk management awareness is equally important.

The important conditions of risk management are roughly such as position management, through the position to balance the risk, of course, the short position is also the best avoidance behavior, secondly, is the stop loss point, when your shareholding target has destroyed your mode system, you should make a stop loss, your largest acceptable point will be established, especially when the market goes bad, even some of the lower the more to make up, and finally re-positioned, completely in a passive or even unable to move state, which is very undesirable.

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