Many novice traders may feel that a successful transaction requires a very high prediction accuracy. There is nothing wrong with this sentence itself, but if you spend too much time and energy on "forecasting the market", it is easy to lose more than you gain in the end. Spending time and energy on profit and loss management and risk control can get twice the result with half the effort.

It is difficult to guarantee a high winning rate. In trading, it is of course very important to keep a certain winning rate. However, we must be soberly aware that the market is complex and changeable, and no trading system can guarantee forever application, and misjudgment is a common phenomenon in the trading process. Spending too much energy on improving the winning percentage may have little effect. Therefore, if traders want to grow and progress, they must first get out of the misunderstanding of "pursuing winning percentage".

A high winning rate does not necessarily make money. In fact, what many people don't know is that excellent traders usually like to maximize the amount of profits in the market, rather than the number of profits, that is, pay attention to "profit amount" rather than "profit rate". Because even if there is a high winning rate and there is no reliable fund management, it will still fail, or even worse.

Reasonable profit-loss ratio is the key. Remember, there is only one ultimate goal of research direction and market potential, and that is to find trading opportunities. But more importantly: always consider the ratio of potential benefits to risks as the biggest consideration, and don't haggle over small losses in the middle. The establishment of the whole trading system is what we need to pay attention to most. So it is very important to set a reasonable profit-loss ratio at this time.

However, compared with setting a stop loss, the profit-loss ratio is a lagging indicator. Only after we have done a lot of transactions can we find out what our profit-loss ratio is. Therefore, when you first enter the market, it is difficult to guide the exit point with the profit-loss ratio. If the profit-loss ratio of compulsory machinery is set, it is likely to step out of the market and cause profit losses.

Then, how to operate after profit and set a reasonable profit exit point?

First of all, make a trading plan in strict accordance with the trading system, and take profit when the trend of the market changes in the trading system;

Then, after floating profit according to the trading plan, set the cost line as the forced exit point, or set a floating stop loss to at least ensure no loss. After generating a certain floating profit, you can gain a bigger market with a moderate profit, expand the profit-loss ratio, then match and choose according to your own account situation, and finally gradually improve your trading system.

Finally, insist on implementation to ensure the consistency of the transaction.

You can review and summarize your usual trading, analyze your current profit and loss situation, improve the trading system in time, and find an optimal position according to your trading situation, so as to obtain a higher profit and loss ratio. If you can do this, I believe you are not far from achieving long-term stable profits.