article originally from FMZ.COM
Jump in with trend and get out with the trend!
The market will be smarter than us at any time. The timing of a tremendous wave of trend, the form of development, the scale, the intensity, and the duration of the time are almost always out of our expectations. It seems that we will never follow our mood. The key to participating in this game is to maintain your initiative, leadership, and control.
The only thing we can control in the trading is the stop loss. We need to know clearly how much risk we will take and how much loss we will bear. When we know this bottom line, we will have the largest trading space. The amount of profit that can be earned in a transaction is never controlled by us because the market is uncertain and unpredictable. If we peg profit or market, we will fall into an environment that cannot be grasped and controlled, and let ourselves be filled with contradictions and chaos. So the only thing we can do is to focus on stop loss without considering profit, which is the best way to pursue profit.
"The only thing that can be done is to focus on stop loss without considering profit. This is the best way to pursue profit."
The real profits from speculative trading come from those positions that have been profitable from scratch.
Focus on the stocks that are most prominent on the day. If you can't win profits from the leading active stocks, you can't make a profit in the entire stock market.
Whenever I wait patiently for the market to reach the "key point" before I start, I can always profit from the transaction. why? Because in this case, what I chose is the psychological moment that marks the start of the market. I never need to worry about losing money. The reason is very simple. I happen to be decisive when the guidelines signal.
Move and gradually accumulate positions according to the signals issued by the guidelines. After that, the only thing I have to do is to wait and see, and let the market automatically expand itself.
I only believe in the trend of the market I saw in front of me, and I will never guess where is the top and where is the bottom. As for whether it is to follow the major trend or to open a position with sub-level trend, it is up to your trading system to decide, and the supporting stop-loss system is guaranteed.
In the futures market, profit and loss is a common occurrence of investment. If you have a loss in your futures position, what should you do? You will be like most other people, bet that the price will one day "come back (ie, floating losses becoming profits or loss reduction)." Now suppose that the futures position you hold has already made a profit. This time you will not bet again. Your approach is simple: immediately take profit and settle down. This phenomenon of "stopping profit is always simple, stop loss is always too difficult" violates the principle of "limited loss, unlimited profit". After long-term trading operations, the fund accounts of many investors are shrinking. What is even more frightening is that due to one or two big losses, the account be busted.
The Doyle Brunson said: most people who enter the casino have experienced the experience of winning money. The reason why most people lose money is because they don't know when to exit. This is also true for investors. "Exit" is "take profit and stop loss". We often hear people say that a stockholder who does not know how to stop loss is not a mature stockholder. The reason is that in a market with unilateral multi-mechanism, “stop loss” is the only “tool” that we can effectively control risk. If there are "weapons" that you don’t use, you can’t blame your failures on others.
The friend who told the story to the author once witnessed a companion in the "Randomly draw one card to compare the big or small" gamble, and repeatedly bet the fourteen "small" in a "double down" approach. On the spot, all the credit cards on this person were “exploded” and lost more than 100,000 Hong Kong dollars. From this we can see that if we don't have the consciousness of “can't afford to lose”, we will always “reserve the position” with limited funds and try to reduce the cost. The result is often that when the “bottom” really comes, we have no chance. Therefore, the author's suggestion is: When we start thinking about "can make up the position later", please select "stop loss".
Compared with the “stop loss”, learning to “take profit” is a more important step towards maturity. Because "Take Profit" requires us to overcome a greater psychological barrier, that is, to overcome the "greed", which is deeply rooted in human nature. People in the stock market are all want profits. It is impossible to not "greedy". However, everything has a "scale" and "insatiable greed" is the performance of "infiniteness", and ultimately it must be self-sufficient. We should remember: What is the word "greed"? It is the natural dialectics.
Speculative trading, giving up the subjective view of the self, following the footsteps of the market, and combining with the trend. Pull the hand of the price and follow the trend. It's that simple.
Friends When you trust the trend, you just find God, because the trend is God, there is no other God. When you trust it, drift with it, we are in harmony with the trend, in harmony, with the same pace. This game is eternal - with the trend, with the trend - this is an eternal game.
article originally from FMZ.COM