First, the trading market is a market with ever-changing information, and the information we get is lagging behind. So in the process of trading, we will encounter some situations that are completely opposite to our ideas. At this time, we must implement the original rules to stop loss, not to say that we are lucky, because people who are often deeply involved are lucky people.
Second, we need to plan ahead when we enter the market, instead of buying at will. Buying and selling without a plan is very dangerous. People with consistent transactions usually "plan my transactions and trade my plans" to make their transactions more reasonable.
So what are the rules of transaction consistency?
1. Do it according to the system, without making a choice. Everything that conforms to the system must be done, and you can't choose to do it. If you choose, it will be chaotic, that is, you will abandon the system.
Don't do or try anything that doesn't conform to the system. Outside the system is a restricted area, and any part outside the system is forbidden to try. If the system wants to repair the new operation, it must first repair the system, and operate it through simulation or real disk experiment under the strict control of the system and process. 3. Ensure consistency and eliminate inconsistency through process control. Through the process control of step-by-step guarantee and accidental fuse, the consistency of operation is ensured and the inconsistency of operation caused by the difference of one thought is avoided. (I will talk about process control later)
4. Insist on repeating systematic, simple and correct transaction consistency, that is, the transaction is successful.
5. Enjoy the boredom and unfriendliness of consistent trading. Consistent trading, everything is done according to the rules of quantitative description, firmly framed, without novelty, challenge and adventure, which is boring repetition. Through the cultivation of mind, let yourself accept, adapt and enjoy the boredom and unfriendliness of consistent trading.
Trading is a game with its own human weakness. On the basis of sober understanding, we must train, transform and stimulate ourselves to adapt to and promote the human nature of trading by formulating as detailed rules as possible, through a lot of hard self-deliberate training and through strict trading process control. Trading is constantly changing, and the constant is the trading system, which is consistent with the trading system. This is the network; What is changing is the market, which is a fish, and trading is a consistent trading network in the trading system. The fish waiting for the market swim into the net actively, and then close the net. It's just a repetition The fish in the market are not chasing the whole dish, but standing still, opening a net of consistent trading and waiting quietly.
Why do transactions need consistency?
This is a very good question. It is not only a technical problem, but also a strategic and cognitive problem.
First of all, from a strategic and cognitive point of view, why do you need consistency? Because the market is random and does not depend on anyone's will. No matter how clever your trading method and trading system are, you can't guarantee that every transaction will be profitable. Trading is a game of probability. Although you can't guarantee that every transaction will be profitable, as long as your trading system is positive, as long as your trading times are enough, and as long as your trading methods are consistent, you can guarantee and ensure the certainty of your trading results! In other words, the consistency of trading is a necessary condition to ensure the certainty of your trading results! Without consistent trading, you can't guarantee the certainty of your trading results. The consistency mentioned here mainly refers to the consistency of trends and the consistency of positions. However, nothing is absolute. I have observed and analyzed the operation methods of many trading experts and found many successful big coffees. Many of their trading methods are holding positions, not maintaining so-called consistency. For example, Fu Haitang, a beggar in the north, often trades heavily, even in Man Cang. Of course, they are masters, and they have reached the point where they can do whatever they want without crossing the line. We mortals should be honest and consistent!
Secondly, from a technical point of view, the so-called consistency! The first is the consistency of the cycle. Because we choose different cycles to trade, your potential is different from others, so be sure to stick to your consistency! Because only in this way can you follow the trend and your thinking and logic will not be confused. The so-called look at your cycle is the embodiment of consistency. Then there is the consistency of positions. When your capital has not risen to another height and range, you should ensure the consistency of your positions, such as 1 10,000 USD. If you trade with one hand every time, you must ensure that you trade with one hand every time. Unless your capital rises to the range of $50,000 to10,000, you can increase your hands appropriately. If you can't, you always have an account of10,000 dollars. This transaction is one-handed, and the next transaction is 0.5 or two-handed. It is difficult to guarantee that your transaction result is certain!
Because the temptation of the market is always there, it is very difficult to ensure the consistency of the transaction! In the case that your cognition has not reached a certain depth, you need the assistance of rules or external forces to ensure the consistency of your trading behavior! But to solve the problem fundamentally, you must improve your trading awareness. You really realize the importance of transaction consistency. Only when you reach a level of belief can you truly achieve transaction consistency!
Why do transactions need consistency? In fact, it is a way to ensure the unity of knowledge and action. In the current stock market, there are too few people who really understand value investment. Even if they do, there are not many people who can do it, which leads to a result that few people make money and most people lose money.
So trading needs consistency, which means that you not only need to "know", but also need to "do". Only by "integrating knowledge and practice" in thought and operation can we obtain the qualification of sustainable profit in the market.
After entering the stock market, many people did not focus on learning how to invest. I feel very sad. Just like you enter the market, but you don't know what to do and how to do it, then the result must be "sad".
In the stock market, the real investment method is "value investment". Because the stock market has existed in the world for hundreds of years, only "value investment" is recognized as the most authoritative and influential correct investment method in the world.
Therefore, people who know how to invest in value can truly qualify for the continued profitability of the stock market.
And what is value investment?
In fact, value is a reference index to measure whether the stock price is risky or shows opportunities. The way to measure value is to judge valuation!
This can be analyzed and judged by various indicators such as price-earnings ratio, price-to-book ratio, company performance, authenticity and sustainability of profits, future development space of the industry, and performance growth rate. The more you know and see, the more detailed your judgment of value will be.
Judging from the fluctuation of stock price in any market in the world, it is all around the value. Maybe many speculative ideas will make a lot of money in the short term, but in the long run, only value investment is the most reliable.
Therefore, the first step in the integration of knowledge and practice is to understand the way of investment: the significance of value investment, and in the A-share market, value investment can be divided into:
1, based on the long-term investment strategy of bear-bull cycle, the bottom layout of bear market and the top profit of bull market;
2. Value investment with the strategy of finding growth stocks and holding them firmly for a long time;
When we understand the value investment and know the way of investment, we need to make an investment strategy.
Investment strategy is a kind of "skill" that can help investors to operate well according to the plan. It can be said that truly excellent investors have their own investment strategies and trade according to them with extreme self-discipline.
For most retail investors, on the contrary, they not only have no investment strategy that suits them, but also are easy to follow suit and lack self-discipline in trading.
For example:
For example, if you start to lose weight yourself, you always fish for two days and dry the net for three days, which leads to irregularity and no purpose, so losing weight always ends in failure.
But for excellent athletes or bodybuilders, they will make a strategy, arrange the time reasonably every day, control the right amount, and suit their own diet, so as to achieve the role of losing weight and shaping.
This is the importance of making a strategy.
So, how to make your own stock market investment strategy? In fact, it can be divided into several steps:
1, choose long-term or short-term investment mode; (Of course, as I said earlier, long-term value investment is gold, so what I say below is long-term. )
2. Choose the investment mode of bull-bear cycle or growth stock;
① Select the periodic stock layout in the bull-bear cycle, and study the indicators and methods of bull-bear judgment in detail;
The long-term investment strategy of growth stocks focuses on finding growth stocks and choosing the reference of buying opportunity;
3. Establish a portfolio, find out when to buy and when to sell, and allocate funds reasonably;
Investment is a risky and profitable way, but it needs to bear great pressure and external factors. Therefore, when investing, we must formulate an investment strategy to avoid wrong judgment caused by emotional and seductive factors, so as to win more effectively and with high probability.
Explanation: the correct deployment in the small military account determines the victory on the battlefield thousands of miles away. We can see that from ancient times to the present, the strategy formulated is always more effective than fighting on the battlefield. Therefore, decision-making determines success or failure. This principle can be applied in many places, and it is also true for the investment community. The second step of knowing and doing is to formulate an investment strategy!
Most people may be able to do the first two steps, but they will always be destroyed in the last step. This is the greatest feature of human nature: "laziness, lack of self-discipline"!
Let's look at an experiment.
The same is true of the investment community!
Because of laziness, your investment strategy may be difficult to stick to;
Because of greed, you may turn the original long-term investment into short-term speculation;
Therefore, when you know how to invest and have an effective investment strategy, the next thing to do is to develop the habit of self-discipline and do it strictly according to your own plan without deviation.
Why are institutions more powerful than retail investors? Not because they have a lot of money, nor because they have a lot of information to get a wide range of news. Compared with these things, there must be mountains outside the mountains and people outside.
Institutions are more likely to make money in the stock market than retail investors because they have their own strict trading strategies and are very disciplined in trading. Like when to buy, when to sell, when to be free, and so on!
This shows how important it is to cultivate the habit of self-discipline!
This is a good topic and an extremely important comprehensive issue, which involves the technicality, principle, discipline and mentality of trading. For an author who has been in the stock market for nearly 20 years, he has a very deep understanding of consistency through such long-term practical experience and baptism. In this regard, I think we should interpret and explain this problem from the following two aspects.
1, what is the consistency of the transaction? What is its value and significance?
The consistency of trading mainly refers to the consistency of a mature and stable "trading system". Simply put, you should keep the same reason every time you enter the market. The entry reason corresponds to the entry reason, that is, what is the reason for buying and what is the reason for selling? The entrance and exit must be identical. Consistency not only refers to trading rules, but also includes fund management, trading varieties and trading emotions. If you break the opening rules, then the corresponding closing must be related to the breakthrough. After the breakthrough, this wave of kinetic energy will soon end, that is, the market will be exhausted, so you need to close your position. This is the corresponding relationship between opening and closing, which reflects the consistency of the trading system.
Based on the analysis of fundamentals and growth, then, as long as the management of the company has not changed, then you should always hold positions or short positions. Don't buy this company passionately because its price is stronger today, and don't sell it passionately because it is weaker. Strength is not the reason for your business, and it is not worth worrying about. Even for a value investor, there should be no such words as "strong" and "weak" in his dictionary.
If the operation is based on technical analysis, then determine your principles. As long as the stock price is above a certain price, or an indicator is above a certain number, or the trend is good, you should hold positions. As long as the stock price is below a certain price, or an indicator is below a certain number, or the trend is getting worse, you should short. Don't short the price of this company just because it goes up today, Man Cang, and don't short it just because it goes down. Strength is not the reason for your business, and it is not worth worrying about. Even for a value investor, there should be no such words as "strong" and "weak" in his dictionary.
To understand these problems, look back at the stocks you hold. The short-term trend of individual stocks will be affected by many factors. The candle chart keeps jumping up and down every day. Some stocks will be adjusted back by about 30% in the short term, but will those stocks that are adjusted back by 30% eventually hit a new high? Does the trading logic change when the callback is 30%? The trading logic has not changed, so we must firmly hold shares. At this time, there is only one key core question to consider: what are our specific consistency principles?
Of course, in the process of adhering to "simplicity and purity", mistakes will be made in the short term (this mistake is not established, but the profit and loss of the system are the same). For example, when the market is weak, your capital return curve will fall back, but the principle that makes you make mistakes today may be the principle that makes you succeed tomorrow. Tomorrow, because of your persistence, you will seize one bull stock or band market after another, provided that your trading system is scientific and can be tested.
Therefore, what we are thinking about is that for the trading system, there is no difference between good and bad, only whether it is suitable for you or not, and only whether it can persist. However, no matter what kind of trading system, top traders adhere to the principle of consistency in trading and do simple things well. Technical experts, appraisers and board makers all adhere to the principle of simplicity and purity and have achieved great success.
The principle of consistency in trading tells us that it is enough to grasp the most important one or two key principles in our trading foundation, and other details and indirect things should be redundant. Investment is to simplify complex things and then repeat these simple rules. Only in this way can we have inner peace, and our mentality will be stable and peaceful, and a peaceful mentality is the primary prerequisite for us to do a good job in trading. Only this tranquility can support us to survive the turbulent cycle that the market may come, so that we don't need to look at X with our eyes and think about Y in our hearts, but trade Z with our hands.
The principle of consistency in trading tells us that the simpler and purer things are, the more effective they will be. Of course, in this "simple and pure" process, there will be mistakes in the short term, such as the withdrawal of your funds during the market weakness or consolidation period. However, the principle that makes you make mistakes today is only a matter of short-term market, and it is within the control and redundancy of the trading system. The market is the most just God, and he will definitely give investors who understand him due rewards. Only by maintaining the consistency of transactions can we make long-term stable profits. Long-term profits will not be confused by short-term losses and huge profits in the market. They will stick to their own trading philosophy, their own trading system and their own trading logic, and trade according to objective principles, knowing that consistency and stability are far more important than profiteering. Trade according to your trading principles, and long-term profits will be close to you.
2. How to improve the consistency of transactions?
Trading is actually a process of execution, a process of improving execution and self-discipline. The consistency of trading rules requires opening and closing positions in strict accordance with trading rules. If you don't meet the buying conditions, wait patiently, objectively analyze and identify the market trend according to the trading rules, and wait patiently for the opening point of your own system after making a trading plan. In this case, you can stick to the opening rules.
Adhering to consistency is actually a cognitive process. If you can understand the profit of a transaction and ignore the gains and losses of a transaction, you can do a good transaction, because realizing profit is not a transaction. Achieving profitability is an accumulation process. We should learn to calculate the general ledger, which is the result of many transactions according to the trading rules.
For professional traders, the best state is to keep a stable mood to trade. Only in this case can the transaction be objective enough, and only in this way can the transaction be pure.
The premise of emotional stability is to establish objective trading cognition and pay attention to the process of trading execution, rather than the gains and losses of each transaction. If you do it right, the natural transaction result will not be bad.
Said a lot, the fundamental purpose is to establish a correct understanding of the transaction, through the "process control" to profit, not the result, this is the only correct trading concept.
If you want to make a good deal, you must fully understand and master consistency, which is the only way to make a profit. Through the above comprehensive explanation, I hope to help everyone.
The so-called transaction needs "consistency", that is, it is carried out according to the preset execution strategy, and the strategy will not be changed because of emotional excitement. Imagine that if you don't add positions when you should add positions, you don't reduce positions when you should reduce positions. What will be the final result?
In the end, there is a high probability of losing money. Emotional investment not only destroys the original strategy and scheme, but also may put itself in a very passive position. There is a saying in the stock market that "strategy is greater than trend". What does this mean? In other words, by formulating corresponding strategies, even if the stock market is misjudged, as long as the strategy is executed correctly, the risks brought by the corresponding stock market will be small.
I believe that many investors can't achieve the "consistency" of trading because of the influence of psychological fluctuations in the process of investing in the stock market. I think the process of stock market investment is more important, from stock selection to implementation strategy and response plan. These four steps are indispensable. However, what if we skip the strategy of stock selection and implement it directly?
What should you do in the face of more than 3700 listed companies in the stock market? Should all listed companies be suitable for you to implement strategic methods? Obviously not. Therefore, in the process of implementing the strategy, we also need to choose suitable listed companies and listed companies that meet the conventional conditions, rather than choosing them at will.
So, what's the plan? If you plan to invest 654.38+10,000 yuan, you have also formulated relevant implementation strategies, but you need to withdraw 50,000 yuan because of other things. This will be a heavy blow to the original implementation strategy. The blow will not come from the market, but from itself. Because there is no clear response plan at the beginning of investment, it is not enough to have an implementation strategy, but also to reach the controllable range of funds.
I think investing in the stock market requires consistency in trading. If consistency is lost, it is often the beginning of a loss. Although consistency cannot achieve 100% profit, the success rate can be effectively improved.
Many people don't understand why they lose money.
First of all, what is the consistency principle of transactions? This problem is actually the root of many investors' losses. The principle of consistency is simply: what is the reason for buying and what is the reason for selling? The entrance and exit must be identical.
Our investment in growth stocks is based on the analysis of fundamentals and growth. Therefore, as long as the management of the company has not changed, you should keep holding positions or shorting. Don't buy this company passionately because its price is stronger today, and don't sell it passionately because it is weaker. Strength is not the reason for your business, and it is not worth worrying about. Even for a value investor, there should be no such words as "strong" and "weak" in his dictionary.
If the operation is based on technical analysis, then determine your principles. As long as the stock price is above a certain price, or an indicator is above a certain number, or the trend is good, you should hold positions. As long as the stock price is below a certain price, or an indicator is below a certain number, or the trend is getting worse, you should short.
There is no good or bad trading system, only what suits you and only you can stick to it. Top traders adhere to the principle of consistency in trading and do simple things well. Technical experts, appraisers and batters all adhere to the principle of simplicity and purity and have achieved great success.
The principle of consistency in trading tells us to combine enthusiasm and attention. On the basis of our business, it is enough to grasp the most important point or two, and other details and indirect things can be completely ignored. Investment is to simplify complex things and then repeat these simple rules. Only in this way can we have inner peace. This tranquility has supported us through the turbulent years that may come in the future, so that we don't need to look at A with our eyes, think about B in our hearts, but hold C in our hands.
The consistency principle of growth stock trading is to adhere to the growth principle mentioned in our course, take valuation as the judgment basis, and quantify it with PEG and other indicators, so as to determine our trading strategy. Underestimate buying, overestimate selling, and adhere to the principle of simplicity and purity. This seems simple, but it is difficult to do. In our daily investment activities, we often see many pseudo-growth stock investors. At a certain stage, they are based on the growth stock principle. For example, stock selection and buying are based on the principle of growth stocks, but in the face of fluctuations, they rely too much on technical strength indicators, resulting in a very chaotic trading system, so that they often buy wrong and sell wrong.
The principle of consistency in trading tells us that the simpler and purer things are, the more effective they will be.
Of course, in the process of "simplicity and purity", mistakes will be made in the short term, for example, when the market is weak, your funds will be withdrawn. However, the principle that makes you make mistakes today may be the principle that makes you succeed tomorrow. Tomorrow, because of your persistence, you will catch one bull stock after another.
The market is the most just God, and he will definitely give investors who understand him due rewards. Only by maintaining the consistency of transactions can we make long-term stable profits. A long-term profiter will not be confused by short-term losses and huge profits in the market. He insists on his trading philosophy and trading system and trades according to the principle of objectivity. He knows that consistency and stability are far more important than profiteering.
Trade according to your trading principles, and long-term profits will be close to you.
Consistency means that there are rules to follow, emotional stability and system stability. For example, when you can't buy stocks, you will follow the value investment, and when you sell them, the technology will flow.
Different trading systems will deny each other. When you can technically open a position, the financial data of the stock is not necessarily good, and the value is not necessarily worth holding for a long time. When the value angle is suitable for investment, short technically.
So what kind of trading system to choose must be explored through long-term trading. Once selected, it must be strictly observed and cannot be changed by personal emotions.
Trading consistency means that you must have your own trading style, which is not influenced by other people's stock pushing, including the "research institutions" of brokers. Well, what do you think of this question? Personally, I think that the promotion of stocks by brokers does not mean that the recommendation of stocks is to hurt retail investors, who mainly set themselves up; The specific deduction process is as follows. Let's see if this is the case:
What general brokers dare to recommend should be that the dealer has absorbed enough chips to prepare for the staged stock price, but retail investors don't think so. Retail investors will think that brokerage recommendation is to find someone to take over, but he will still include these in stock selection. I often have a look. After a while, I found that these stocks are really rising, but retail investors are still very careful not to buy them. After a while, they found that it was still rising, so they began to buy it little by little and tried it. After a while, they found themselves so fierce. They all went up by 30% or even 50% or even doubled, and they began to regret buying less. Under the psychological effect of chasing up instead of down, Man Cang began to chase up, even raising money and leverage to chase up and buy and then wait for a higher price. Out;
As everyone knows, your psychology represents the psychology of most retail investors. When most retail investors are in Mumbai, who is losing chips? Of course, the dealer sends chips, so the dealer sends them while pulling up. As long as the dealer sells less, he can reduce his position as planned and complete the delivery plan.
How is the dealer's delivery plan determined? Of course, it is not decided by patting the head, but by the current chip activity, that is, by means of temptation, shock, sudden rise and fall. , we can roughly calculate how many retail investors we can attract to take over, and then calculate the total amount of this installment shipment. Of course, we must also cooperate with the international and domestic situation. After all, the situation is better than people, and these people in charge of the village know it;
If it is not a super bull market, then when the phased shipment plan is completed, the dealer will generally start to suppress the stock price, and then come to the second wave; And those retail investors who are still dreaming after chasing high will suddenly find that their stocks have not risen much or even fallen a little for a while and start to lose money, but retail investors will think that this is only an adjusted high, so they will not rush to sell. After a while, retail investors find that their stocks have fallen by 10%, and they will start to be a little worried, but they are reluctant to cut their meat. After a while, they will start to panic but still can't sell, and eventually fall.
If retail investors don't sell, then the banker can't make a second wave by adding chips at the low position, so the banker will use various means to let retail investors cut their meat desperately, thus starting a new band. Blocking the field is like this wave after wave. Like a wave, open your mouth and devour retail investors who try to make money by chasing waves, and finally form a pattern of alternating bulls and bears; It is human nature to block the field endlessly and have nothing new;
The above deduction process is pure fiction. It's a coincidence if it's exactly the same as or similar to the previous experiences of the big brothers!
Transactions don't need consistency. If there is too much consistency now, it will easily lead to big differences, and then there will be opportunities. This is the problem that differences turn into consistency. Every time the market starts from freezing point, it rises in hesitation, climaxes in agreement and ebbs in agreement. Therefore, there is an opportunity in disagreement, eat meat first and then pay the bill.
The consistency of transactions is a very professional issue. Those who can understand are basically experienced traders.
The understanding of this problem is based on probability first. For example, we use the buy signal of the gold fork above the MACD zero axis. When it is accurate, when it is inaccurate, this signal will have a winning rate for a long time, such as about 60%. Then this is consistency, that is to say, the quality of an indicator or a trading model should be verifiable for a long time, and only in this way can it be judged. But most beginners often don't think so. They are easily influenced by the market. They hate mistakes and losses, so that they constantly change index tools or trading systems in a short time, which violates the principle of consistency. Because, even for a long time, they don't get consistent results, and this kind of transaction feedback is naturally not ideal.