Successful traders will also avoid trades with poor risk-return ratio and prefer to skip them. Trading opportunities often appear like buses coming and going, and good traders will wait until the odds are high and the risk-reward ratio is better than their own. Today, Bian Xiao will share with you how to avoid trading with little chance of winning investment, for your reference only!

Through the historical track, we can find similar patterns to help you predict the profit probability of all different market transactions, whether it is the stock market, commodity futures, money market or bond market. These models are often tried and tested, because the basic assumptions of technical analysis are all induced by human nature, which is quite predictable.

Grasp the best trading opportunity

In Las Vegas, different casinos have different rewards, but the chances of winning are the same. Therefore, traders must also consider many variables when choosing different exchanges and brokers.

Different transactions have different rules and customs, especially foreign exchange. Before entering a new market, you should not only pay attention to how to "make big money" in this market, but also pay attention to important details. You must really understand the trading mode, time limit, margin percentage, trading limit, ordering procedure and how to ensure that your order is executed correctly. After careful exploration, you may find some obstacles, such as high margin ratio or inconvenient trading time.

Although online transactions are becoming more and more frequent, I prefer to execute transactions through brokers, and the speed of online execution is still slower than that through brokers. In addition, I still like someone who can help me confirm every buying and selling action and make sure that I am not going the wrong way, just like a pilot needs the guidance of a navigator to reach his destination. But you must find a suitable broker. The profession of the broker must meet your personal trading needs, and the two sides must have a certain tacit understanding in character. You must pay the broker, but you must make sure that the money you pay is a satisfactory service, including whether you want the broker to help you with your research, remind you of the price changes of stocks or commodities, and support and help you at any time. How much help and support do you need from him? If you need a lot of help, there is no reason to pay only the minimum fee; But if you don't need a lot of backing, you don't have to find an expensive broker to provide extra services.

The broker I am looking for must pay professional attention to the details of the transaction, and the tacit understanding between me and him is also very important. Life is too short to be with people who are indifferent, cynical and don't support you. So when I choose a broker, I will not only refer to their past professional records, but also pay attention to their personal lives, especially whether he is willing to share his personal experience with me. I don't care at all which school he went to. I care very much whether they come from a hardworking and honest family, whether they finish their studies part-time, what they have done in the past and how long they have worked. In short, what I want to know is the personality traits, work ethics and working experience of brokers.

Because we have a telephone transaction with the broker, I think the character of the broker is very important. When you choose an agent, you must know whether he is honest, enthusiastic or too self-centered. He will laugh at or complain about the number of orders you place, because he is jealous of the money you earn. Is he emotional? Is he always trying to squeeze brokerage fees to make himself richer, or is he willing to help you develop your strengths?

I will ask my agent frankly about his values and ethics. I like to work with brokers who have religious beliefs or some kind of spiritual sustenance. I usually go to three existing clients of this broker and ask them about their cooperation experience. For me, the spirit of "teamwork" is very important. If the broker can meet my needs, then the most basic profit conditions are complete. I also like to cooperate with top brokerage companies, preferably companies that have been established for more than ten years, with stable financial situation and outstanding reputation. At the same time, I will try my best to know whether the settlement company that cooperates with this brokerage company is trustworthy and has been practicing for many years.

Don't bet that you can't afford to lose.

Another important factor for traders to achieve long-term success is persistence, that is, the ability to stand firm in the market and not be eliminated. This is the same as what gamblers need. You must stick to it until the situation is favorable to you. This persistence consists of the following three elements:

1. Psychological capital: Don't be scared by sudden losses, and don't be greedy by sudden influx of profits, so that you can't implement the established trading and financial management strategies.

2. Material capital: No gambler can stay at the gambling table for 24 hours. Similarly, traders need to rest. You must arrange your diet, sleep and exercise reasonably, so that your body is in the best condition at any time.

3. Monetary capital: Regardless of winning or losing, we must stick to the original financial plan. The most important factor causing misjudgment is often due to the capital investment beyond the ability. If you invest too much and lose money for too long, you may play early before the situation becomes favorable to you.

Grasp the mainstream pulse

Skilled gamblers will increase their bets when they win and decrease their bets when they lose. If you have been losing money, you should consider reducing the number of stocks or futures on hand and reassessing your strategy. At the very least, never add more money when you lose money. Usually, amortized cost will be more and more flat. One of the main principles of financial management is to make a stop loss.

I stress once again that when the price falls, it must not be leveled all the way. For example, when you buy a silver futures contract, the price of silver begins to fall. At this time, you may want to increase the price and buy more and more silver futures in the case of falling prices. Your wishful thinking is that one day the price of silver will rebound and rise, and you will make a lot of money. You may succeed, but if the price of silver continues to bottom out, all your hard-earned money will go up in smoke in this transaction. When the price continues to rise, the emptying operation is very dangerous. If you short the silver futures contract and the price of silver rises, you may decide to increase the number of short positions, hoping that the price of silver will reverse downward before you are forced to make up the position, so that you have a chance to unwind.

Stop loss and make profits satisfied, which is the only rule of trading. Of course, it is not easy to learn when the situation is reversed. You must carefully observe the mainstream pulse of the market. Experience tells me that if you have to work hard to achieve your goal, it is usually impossible to achieve it in the end, whether it is interpersonal relationships, business contacts or transactions. Besides, we can't make a profit every day, just like playing golf, sometimes we can't play well.

When trading makes you a lot of money, this is definitely not the time to take a month off or go fishing. When the transaction goes very smoothly and the interference to your personal life or career is minimized, you still need to follow the established transaction analysis system and financial management strategy to continue the transaction.

Concentrate on implementing the correct rules of the game.

Good gamblers forget that the purpose of their gambling is to make money. They just focus on their gambling skills, and making money is just a by-product of the right steps. A good gambler will carefully analyze the probability of winning or losing, and then make a bet. They focus on the gambling they are facing now. If gamblers always pay attention to the money on the table, they will be distracted and unable to play their gambling skills. Paying too much attention to money in trading will also reduce the chances of success. Implement the correct trading and financial management rules, and money will naturally roll in.

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