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Let me give you a brief introduction: richard dennis.
-a legend in the futures market (he is very powerful)
Richard dennis is now retired, but his legendary experience in the futures market is still praised by his peers. He personally brought out more than a dozen apprentices, who are the new force in the American futures market and manage billions of dollars. He started from 1600 dollars, and by the time he retired, his wealth had reached hundreds of millions. In the late 1960s, Dennis became interested in the futures market by doing odd jobs in the exchange.
In the summer of 1970, he felt that the time was ripe and was ready to try his hand in the futures market. He borrowed 1600 dollars from relatives and friends and wanted to buy a seat in the exchange. However, due to lack of funds, he can only buy a seat on a small "US-China Exchange", which costs 1200 US dollars, leaving only 400 US dollars in principal. It was this 400 dollars that Dennis miraculously turned into more than 200 million dollars. In his father's words, "Richard, this 400 yuan is a good roll."
Dennis was not born to be a futures trader. After graduating from high school, he found a temporary job in the exchange with a monthly salary of 40 dollars. Learning while doing, he quietly opened a futures account. At first, it was hard work and little pay, and the salary in January was less than an hour. But fortunately, he did a small amount and lost a limited amount of money. Many years later, when Dennis recalled that time, he felt that the tuition was a good deal and he learned a lot. At that time, he was under 2 1 year old and could not directly enter the exchange to make orders. His father stood inside to bid for him, and he commanded outside. So I worked on and off for two years, and I lost about two thousand dollars. On the day of his 2 1, his father breathed a sigh of relief and said, son, do it yourself. I know nothing about this industry.
Dennis's early experience in making orders is as follows: First, it is best to lose more and win less at first, because at that time you had little money and limited losses. If you don't start to lose money until you get bigger, the cost will be much greater. Secondly, don't be paranoid, be flexible, some people are paranoid. If the first profit is long, then he only likes to pay the bill all his life. On the contrary, they will only be short-sellers all their lives. In the 1970s, inflation was serious, and commodity futures only rose for a few years. Some people don't make money themselves, but when they see someone around them making a lot of money, they form the habit of being a cow. This is very harmful.
After Dennis entered the "US-China Exchange", he did a good job in the first three months, catching up with the corn pest that year and quickly rolled $400 into $3,000. He had planned to go to college, but after only one week of classes, he decided to drop out of school and become a futures trader. One day, he entered a stinking bill and lost $300 at once. He felt dissatisfied, turned around and entered another one, and soon lost hundreds more. He gritted his teeth and turned to get another one, so he tossed back and forth and lost a third of his principal in one day. From then on, he learned to master the rhythm. When you are not satisfied with losing money, cut the bill and leave quickly, go home and sleep, and then make the next decision later. The lesson of that loss was profound. Dennis will never add orders or be eager to make money because of the loss again. In addition, losing money will affect a person's judgment, so it is best to wait for a while before placing an order.
Another point of the Dunnis Society is to follow the trend when making orders. The stronger the situation, the easier it is to make money. He works as a trader on the exchange website, mainly making money with the market. Many people are always in a hurry to leave when they are making profits, even when the market is trading at a daily limit, for fear that the money they earn will be wasted. Dennis always makes lists at this time and always makes a lot of money the next day. On T8, 19, Dennis decided to leave the exchange and make a bill in the office. In the past few years, the futures market was relatively simple, mainly commodity futures. By the end of 1970s, foreign exchange, securities and other futures markets gradually matured. In order to make profits in more markets, Dennis decided to withdraw from the scene of the commodity exchange and make orders from the off-site. In the first year, Dennis lost some money because he was not used to it. Later, he found that: first, when you leave, you don't make orders so quickly. You have to look farther and make more long money. Secondly, the direction of judgment is not the same. You can feel it on the spot. For example, when the market turns, several people are always wrong. When you know that they are all bulls or bears, you will naturally have a more correct judgment on the direction of the market. After leaving the market, this information is gone, so we have to find another way to judge the market.
The key to Dennis's success lies in summing up experiences and lessons in time. He is basically self-taught, and all his experience and knowledge are learned from the market in practice. Most people are ecstatic after making money, and disheartened after losing money. They seldom think about why they make money and why they pay. After losing money, Dennis always seriously reflected, found out the mistakes and tried not to make them again. When making money, we should calmly think about where the right thing is and how the same method can be used in other markets. This has accumulated over time and naturally formed its own unique method of making orders.
The second is risk control. From the first time he made a mistake and lost the principal of 1/3, Dennis learned to control risks. Generally speaking, a good order will be profitable soon after it enters the market. If a single order loses money a week or two after entering the market, nine times out of ten it is in the wrong direction. Even if you go back and draw it, after all this time, you may still be wrong. Always prepare for the worst after entering the order. What you think is impossible will often happen. Therefore, it is necessary to set a good price for cutting orders and resolutely cut them after price reduction.
It's very dangerous to find the bottom and get the top. Dennis believes that judging buying is only the possible direction of the market, but how much to go in a certain direction depends on the market. Dennis occasionally makes an exception and tries to find out or touch the heights. For example, when the price of sugar rose to 60 cents, he went short and made 13 cents a catty. But then he made a bargain near 10 cents and failed again and again. According to himself, he emptied his pockets and lost more money than he earned. Therefore, the result of going against the trend is still not worth the loss.
Dennis thinks that the most difficult time is also the most promising time. Sometimes I lose money and don't want to ponder the market, but often the best single machine will slip away quietly at this time. Only when we seize the opportunity to make money and make full profits can we make mistakes. On the other hand, we should learn to choose the best time to make orders. Dennis estimated that 95% of his profits came from 5% of good orders. Missing good opportunities will affect your grades, but filtering out some lists that should not enter the market will increase your yield.