1
Trading is a probability choice.
The judgment of direction in financial market is a random phenomenon, and the overall result has three aspects: upward trend, downward trend and shock trend. When the transaction is in progress, no one can guarantee that there is a 100% choice in a certain direction. Investors need to remember that our trading plan is based on the probability of exceeding or falling below 80% and above. This is determined by trading discipline, and daily position control and risk prevention must be in place. Looking back on my biggest loss, most of it was because I didn't abide by the trading discipline.
Know the three possibilities of market fluctuation, form a trading system through fundamentals and technology, analyze the direction of high probability breakthrough, and then establish a trading plan. This is the essence of trading. Understand this, your acceptance of stop loss will increase, you will not be nervous and anxious in the face of short-term floating losses, you will doubt and change your trading plan at will.
2
A correct understanding of the trend
Investors have been trading for a long time, and it is inevitable that they are familiar with the word "trend". However, many people's definitions of trends are vague and unclear. Simply put, the trend is the direction of price fluctuation in a certain period of time. A period represents the continuity of the trend and needs to be defined by the trend line and the inflection point line.
How to solve novice anxiety?
As shown in the above figure, the trend of corn 200 1 contract, at the daily chart level, fell below the low point of the previous bullish trend callback and turned into a short trend. Later, the fluctuation rebounded to near the pressure and continued to fall.
The meaning of continuation:
1. The price keeps going out of a new low. Among them, the rebound is to pave the way for further decline, and the high point of the rebound stops at the trend line of the moving average.
2. Brin's three tracks go down synchronously, and the short, medium and long periods of the moving averages all turn heads down. On the trend, technical indicators will also significantly indicate the direction.
If you can understand the above points, you won't stick to the temporary ups and downs of the market. What's more, you will see the rising and falling direction of 1 minute, and make orders rashly. In the process of "staring at the market", there is no overall situation, and coveting all price jumps will only take care of one thing and lose the other. After the loss was eliminated, the trading method was questioned, and in order to return to the original profit, the order was made at will.
three
Avoiding shocks is victory.
There are gains and losses in trading, which is a probability problem, so the probability of increasing profit is one of them. The key point that people often ignore is to reduce the probability of loss. Among the three states of the trend, the fluctuating trend is the most likely to cause losses. The reasons for this situation are mainly due to the following aspects:
The form of 1. must change during the oscillation stage.