1, an excellent trading system must include trade-offs.
It is very important to accept and give up. Just give up, the market will not give you a chance to survive; If you give up and don't accept it, you cut off your life. A healthy trading system with positive expected returns must include a choice.
For example, if you want to make huge profits, you must give up something in some ways. The premise of profiteering may need to be held in a heavy position and cannot be as safe as a light warehouse transaction. So, what you give up is safety. On the contrary, if you are safe, then you need a low position to run the transaction, and what you give up is to realize huge profits in a short time. If you like to check in with a bag and take the initiative to close your position on the premise of a certain profit, you will feel at ease and refuse the pain caused by profit extraction, while you give up the possibility of continuing to make profits in the future. On the contrary, if you choose to take the retracement, you may make more profits and feel at ease. If you choose a day and give up overnight, you will take low risk and take overnight safety, but you will give up a series of benefits of the big cycle, such as your scale will be limited.
Different personalities and characteristics have different concerns about things, so various trading methods have been born in the market. However, the trading mode chosen by most investors shows the essence of greed: low risk and high return; Want to copy to the end, want to play high; Want to follow the trend, don't want to suffer fluctuations. Therefore, under the temptation of various interests, everyone is exerting their intelligence, hoping to find a perfect trading method. Unfortunately, this happens to be the biggest lie in the market.
Most people are lost in the temptation of profit.
Some time ago, the commodity market rebounded sharply after falling sharply. I held an empty order and made a big profit in the process of a sharp decline in the market, but the final result was to give up most of the profits. On the contrary, due to the sharp decline at that time, a friend of mine who used programmed trading took the initiative to liquidate his position, that is, he stopped the fluctuation of rights and interests by manual methods, abandoned the respect system and retained most of the profits. Who is right and who is wrong is still inconclusive. But obviously, we all have trade-offs. I take absolute respect for the system; What I give up is the smoothness of the capital curve, and I am willing to bear the withdrawal of the capital curve. What he takes is a certain profit, and what he sends out is absolute respect for the system.
From this result, maybe he is right, because his profit is much higher than mine, but at some stage in the future, he may be punished for it, because his mind is mixed with some subjective fears about the extreme uncertainty of the market. He was anxious to stop the fluctuation of rights and interests, so he didn't have the courage to hold his position until the end when a bigger market appeared in the future. His tolerance and his tolerance for the trend market will be reduced as a result of this intervention system. Then, if the cycle is enlarged, his choice may not be better than mine.
3. Make your own choice according to the actual situation.
In the process of trading, it is normal that we will be affected by the gains and losses of interests at all times. Everyone has desires, and the size of desires is reflected in the amount of funds in your account. If you have a great desire, then the amount of money in your account should account for a large proportion of your assets. Because the changes in the rights and interests of small accounts and small funds can't arouse your desire at all, only big profits can satisfy your desire and give you the motivation to continue trading in the market. However, we need to know how to make a trade-off, and we must also make a trade-off. If we want to get more profits from the market, we must give up more things. For example, your total assets may fluctuate violently because of this, you may lose your composure because of the fluctuation of interests, your family will be unhappy because of this, and so on. On the contrary, if you reduce your desire, keep a balance, control your position and pursue profits, you may become more calm and calm, your understanding of the nature of trading may deepen, and your trading level may be greatly improved.
It is difficult to pursue buying at the bottom and selling at the trend high. Even if it is realized, it is not sustainable. The reason is simple: if you just give up, the market will destroy you. Therefore, traders should pay attention to their choices. Please tidy up your trading system, give up some unrealistic expectations, lower profit expectations, narrow positions, don't use excessive leverage, and don't pursue getting rich overnight, then you will get more things.