Command can talk, it can tell you these points:
Position management
From many records, you will find that the core reason why most traders suddenly lose money is that the risk is magnified several times or even dozens of times because of out-of-control position management. In the case of putting all your eggs in one basket, the fluctuation at ten o'clock may bring a fatal blow to the account.
According to the unwritten rules in the industry, 1 US$ 1,000 1 hand is the position size that professional traders regard as gamblers.
Selection of transaction object
From the long and short point of view, the choice of objects is nothing more than homeopathy and contrarian.
Pai Ge has read books for many years and reached a conclusion that it is difficult for you to make a fortune against the trend.
Why? First of all, compared with the megatrend, the space for callback is relatively limited. Secondly, the situation is better than people. If you refuse compensation in the wrong direction, it will take you a lot of time if you spend months or years. Besides, it won't be worse if I don't fight back. For example, in 2007, the high point of GBP/USD was 2. 1 159. If it is more than 2.0, now 10 years have passed, and there is no dawn for the price to return.
According to Charlie Munger, winners must be very picky when betting, and diversification is a crazy concept. (There is no rule out that the endowment effect is playing a role-Munger prefers concentrated investment. I think he is right.
Opportunities for entry and exit
"Timing is everything." This is what David Livermore said. Of course, the wrong time can be remedied in time with a reasonable position and the right object. However, most people probably don't like the scene of running away and watching the market go on forever.
Look at the market and you will know whether this is a position worthy of layout.
Overweight or not
Most people like to be overweight, which may be related to psychology, avoiding inconsistency, doubt, disgust and loss, and even more extreme is the tendency to hammer people. It is terrible to get the wrong idea from the limited knowledge inventory and stick to it.
Of course, the pursuit of victory can be icing on the cake, but it is a bit problematic to fall in a pit for more than a dozen times and still enjoy it.
Set stop loss and take profit.
Do you want to set a stop loss, how many points? Different people have different opinions. However, if the nature of trading is small and wide, then indulging in risks leads to hundreds of losses, which may not be wide.
Set a take profit and leave early if you don't reach your goal. Fear of profit-taking or other reasons can be judged according to the market. Secondly, if it is often the case that take profit equals to earn nothing, then we have to doubt the execution.
Of course, the indicator that can also reflect the risk awareness of traders is the net retracement.
Mark Twain once said that there are three kinds of lies, lies, damn lies and statistics. The data can speak, but it has the characteristics of survivor bias, and can only be used for reference, but it cannot guarantee the future.
In other aspects, Weibo and homepage information can also reflect the behavior of traders.
There is a trading birthday girl who thinks that if a trader's character is not up to standard, his trading level and realm will not be too high. Looking at the time, the mismatch between virtue and periodic rotation is more destructive to wealth appreciation.
Risk is directly proportional to income, which is a cliche and a wise saying. Under conservatism, the decrease of yield may be a high probability event. Investment is risky, and what is more important than the willingness to make money is the willingness to be prepared. The bad result may be the result of the same source of profit and loss, but insufficient preparation and hasty decision-making can be avoided.