Trading exchange expert master escape plan
Ordinary investors often buy according to the entry suggestions, but are unwilling to follow the exit instructions. If this mentality cannot be improved, even the investment suggestions given by world-class foreign exchange traders can make you face losses. Professional operators always have "escape plans". If you always turn a blind eye to these escape plans, you will waste valuable resources.
Excellent trading masters never answer a question, that is, "where will it go up (down) Whether it is foreign exchange, index or individual stocks, this is an unanswerable question for them.
First of all, if investors are interested in studying the performance of price forecasters in depth, I suggest you make statistics on the forecast results of specific people to see how their forecast values differ from their real performance? What is the average error? What is the correct probability? You can see that most of the price forecasts are inaccurate. This has nothing to do with the ability of analysts, but prediction itself is an impossible task. As a responsible analyst, all he can offer is to suggest investors to operate in the current market trend under the conditions of clear assumptions. A good analyst can guarantee you a higher winning rate, but it is impossible to provide the magic of turning stone into gold. If you don't think you should ask the weather bureau to tell you how much rain will fall today, you shouldn't expect analysts to accurately predict where prices will rise (fall).
Secondly, as a trader, I never set any preset position for the market. In the decision-making process of professional operators, we should not spend time on forecasting the market, but should put all our efforts on measuring the actual trend. The preset target price range is not only unhelpful, but also often makes operators face the consequences of premature appearance, loss of potential profit opportunities, and even adverse operation, leading to serious losses.
In the system of global successful traders, there are clear entry and exit principles. But few people can really make a lot of money by predicting the price in advance. Every operator should be most concerned about whether he is standing in the same direction as the market trend. As long as he continues to observe the market trend fairly and objectively, he will not miss it when the market reverses.
Whether the price can be accurately predicted is not the key to the success of the operator. The real key is the sound approach strategy and operation discipline. I respect the courage of those operators who want to be prophets, but what we pursue is a low-risk, stable and profitable operation strategy. As for the work of guessing the top and grasping the bottom, let's leave it to the stunt experts to think about it.
Investment analysis is a science, not a metaphysics. In that case, we should get used to looking at it from the perspective of scientific research. In the scientific method, there are preconditions and assumptions for anything to happen, and then we use probability to analyze the various possibilities of things. So we often see various figures in our daily life, such as survival rate, crash rate, success rate, probability, etc.
First of all, we must make it clear that price analysis is also a science, so price change must have preconditions and assumptions, and it is impossible to be 100% accurate. When the current assumptions change or unexpected events beyond the expectation of statistical analysis occur, the original inference results will inevitably change. Therefore, no matter whose investment advice you accept and decide to buy or sell, you must have a risk control plan and stop loss strategy. If after the loss of the investment proposal you followed, your heart is filled with only anger, reluctance, reluctance and confusion, and you can't deal with it decisively, you may have regarded the analyst as a fortune teller with a crystal ball.
No foreign exchange trader can win every battle. However, the practice of earning more and losing less and stopping losses decisively makes the operational performance of professional traders and the general public quite different. In the rapidly changing modern society, information is the most precious resource, but if we can not make good use of it, it may cause negative effects. Every analyst is willing to share his research results with investors. However, if investors can reasonably expect these research results and maintain the concept of risk control, they will be able to maximize the benefits of the painstaking efforts of these analysts and help you go more smoothly on the investment road.
