The key to richard 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. Richard dennis always seriously reflects after losing money, finds out the mistakes, and tries not to do it 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 accumulated over time, naturally formed its own unique method of making orders:

Analysis of psychological risk control against market by following suit technology

1. Follow the trend: never think that a price is a high-priced area or a low-priced area. Self-righteous "selling on rallies and buying on dips" is very dangerous. Richard dennis believes that the only thing that can be judged is the possible direction of the market, but how much to go in a certain direction depends on the market. Richard dennis occasionally makes an exception and tries to bargain-hunt or touch the top. In the sugar trade of 1974, richard dennis shorted sugar at the price of 60 cents/pound, but it rose to 66 cents/pound in 165438+ 10, and then fell to 13 cents/pound all the way. However, he later copied the bottom near 10 cents/pound, repeatedly copied the bottom and lost money. According to his own account, he sold short at the top and lost more money than he earned. Therefore, the result of going against the trend is still not worth the loss. Follow the trend when making a single order. 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 profitable, even when the market goes up and down, for fear that the money they earn will be wasted. Dennis always puts the list next at this time, and always makes a lot of money the next day.

2. Technical analysis: richard dennis mainly analyzes the market through technical analysis, and based on his years of experience, together with his partner Dr. William Eckhard, he designed a computer program automatic trading system with the principle of following the big market trend. However, when the automatic computer program and automatic trading system run counter to his inspiration to enter the market, he will choose to leave temporarily and not buy or sell.

3. Anti-market psychology: Don't agree with most people, because most people lose money in the futures market. There is a "market psychological index" in the futures market, which points out that if 80% of traders are bullish, it means that the market will fall if the head is not far away; 80% of traders are bearish, which means that the bottom is not far away and the market will rise. (But for beginners, the author should be cautious. )

4. Risk control. From the first time he made a mistake and lost the principal of 1/3, richard 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 take it back, you may still be wrong after so long. Always prepare for the worst after entering the order. What you think is impossible will often happen. Therefore, we must set a good bargaining price, and then resolutely bargain.

1978 richard dennis decided to leave the trading site and make bills 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 get more profits from the market, richard dennis decided to leave the exchange and make orders outside the exchange. In the first year, richard dennis lost some money because he was not used to it. Later, he found that: first, it is not so fast to leave the scene to make orders, so we should look farther and do longer-term work. Secondly, the direction of judgment is not the same. You can feel it on the court. For example, when the market turns, several people are always wrong. When you know that they are long or short at the same time (the United States still uses manual bidding), 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. (It is quite favorable for most domestic OTC investors. )