Master master trader must-read
The definition of an excellent Forex trader should be that he can obtain stable and continuous compound interest returns for many years in a row, make money over the years rather than suddenly become rich, and often make money rather than make a lot of money. The high profits in the capital market should come from the continuous profits under the long-term accumulation of low-risk. Professional traders only pursue the most reliable, and only amateur underachievers only focus on profit maximization and are satisfied with short-term glory. This is also the fundamental reason why most people are easy to achieve brilliance and difficult to achieve. Heavy positions and frequent transactions lead to huge fluctuations in performance, which is the performance of amateur underhand, and the two interact and cause and effect each other. Perseverance, patience, confidence and perseverance to accumulate success is the professional trading attitude.
Whether you can clearly, quantitatively, systematically and fundamentally limit your single and total operational risks is the dividing point between winners and losers, and then talent, diligence and luck can achieve as much results as possible, which largely depends on the market, that is, "things happen in heaven". As for the losers, no matter how brilliant they are, they are just concussion. In the end, they cannot escape the fate of losing money. The qualitative change from subjective emotional trader to objective systematic trader is the result of long-term accumulation and Sublimation: unconsciousness - awareness - doing - doing well - persistence - habit - Mastery - forgetfulness - success.
Small money depends on Technology (Intelligence), big money depends on will (wisdom). Long term (wisdom) judge the direction, short-term (wisdom) find the opportunity. Wisdom is a great cause, but wisdom is a feast. If you are too smart, you will lose your wisdom (to be smart), so I want to be smart and give up small wisdom (to be smart as a fool). The will here should be understood as unshakable in adhering to one's own correct ideas and effective methods.
A stop loss is a series of small losses replacing larger fatal losses. It is not necessarily a "no" judgment of the market (that is, the completion of the stop loss may not continue in the opposite direction or even most will not, but it is necessary to insist only for that "real" time, and at most it is only a reverse stop loss and then intervene), but it just exceeds its own risk tolerance first, Therefore, the principle of maximum capital loss (must be absolutely less than or equal to 5% of assets) must be strictly observed. As for the loss of too frequent stop loss, it needs to be improved from the number of open positions and open positions, the rationality of stop loss position setting, patience and necessary abandonment. The large market should be light and cautious in overweight (due to the large fluctuation of the market, blind overweight due to greed will not only lose profits in the shock, but also lose direction and destroy the rhythm and fail completely).
Only in terms of single stroke and part, the correct method may not have the best result, and the wrong method may also have occasional victory or even brilliance. However, in the long run and in the whole, success must come from adhering to the correct habit method and constantly improving character cultivation. Nature itself is composed of regularity and most randomness. Any idea that wants to completely, thoroughly and accurately grasp the world is an expression of arrogance, ignorance and stupidity. The pursuit of perfection is one of the forms of expression. "Man plans things and God accomplishes things.", For people, we say it is fate rather than the best. For things, we pay attention to adaptation. What can be changed is ourselves rather than the outside world.
Profit is the product of risk rather than desire. Risk always comes first. It can be controlled and avoided by itself, but not avoided. Because any profit can only be obtained by taking certain risks. As long as the trading idea is correct, we should take the risks we should take calmly. Correct analysis and prediction is only the first step of successful investment. The basis of successful investment requires strict risk management (position management and stop loss management), rigorous self psychological and emotional control (not to be surprised by flattery or disgrace, but not by surprise).
Psychological control is the first, risk management is the second, and analytical skills are the most important. It is necessary to overcome the excessive attention to asset rights and interests or the reasons mixed with personal subjective needs in the transaction, which leads to the amplification of greed and fear, resulting in tactical confusion, and the strategy is out of shape, which ultimately leads to the complete failure of what should be done. Only when the transaction is in the state of no desire can we get more gains, and do what we should do rather than what we want to do most. The market is not your place to seek stimulation, nor is it your withdrawal machine. The stricter the definition of anything, the less its connotation and the stronger its practical operability. In the composition and formulation of our trading rules and trading plans, we must also understand and implement them from the essence and depth, so as to ensure the success rate.
