According to Dugan's Law, the strong may not necessarily be the winner, but victory must belong to those who are confident. And self-confidence comes from strength. Constantly surpassing oneself will form a powerful force originating from the depths of the heart. Once this force is generated, it will continue to strengthen and form a fearless and invincible belief.
"Caesar 368" is a professional futures trader in Haitong Futures' "Swordsman" long-term performance verification platform. It has more than 20 years of financial market trading experience: entering foreign exchange trading in 1994, and trading stocks in 1997. In 1999, he started trading the Hong Kong Hang Seng Index, and in 2002, he started trading domestic commodity futures. Years of investment experience have made him deeply aware that market risks are huge and unpredictable, and he must resolutely and strictly control risks and drawdowns. He believes that the simpler the method, the more effective it is. He must grasp the market rhythm and wait patiently for market opportunities. Once you seize an opportunity, you must be steady and ruthless; if you make a mistake in judgment, you must cut off your position decisively.
A market veteran once warned that only those who wait patiently can hear the footsteps of wealth. "Caesar 368" also fully agrees with this. If its continuous retracement reaches 20%, it will immediately stop trading, reflect and wait patiently for big market opportunities that it can seize. The waiting time can sometimes be as long as one or two months. Long.
"Caesar 368" has a deep understanding and understanding of risk management: some traders' funds increase greatly at a certain stage, but if they do not have a clear understanding of the risks, they are likely to lose money immediately afterwards. A relatively large retracement occurred. A large retracement will be detrimental to traders in three aspects: first, it will severely damage trading confidence, which will be difficult to restore unless the will is strong; second, it may take a long time for the account to recover from the retracement. , this is a waste of time cost; third, during the recovery period, if a big trading opportunity comes, due to the loss of trading confidence, investors may be cautious and worry about gains and losses, which is a waste of opportunity costs. Therefore, "Caesar 368" will control the stop loss of a single transaction within 5%, and the maximum account drawdown he can accept is within 20%. In this way, confidence and trading status will always be maintained in a rational state, allowing funds to grow steadily within the controllable range of drawdowns.
From March to December 2013, the "Caesar 368" account experienced a revenue consolidation period for nearly nine months, but since January 2014, the account revenue has continued to soar. This nine-month earnings consolidation period is a period of reflection and confidence recovery for "Caesar 368" after the sharp retracement. The transactions from 2010 to 2011 were relatively smooth, which led to a surge of self-confidence and a lack of caution about risks. As a result, the account experienced a sharp drawdown in 2012. During that time, "Caesar 368" has been thinking and adjusting - how to avoid major risks from happening again. Fortunately, during that time, he met Mr. Yan Guoxing, who had won many awards in national futures trading competitions and won the third place in the heavyweight national competition in 2013. Mr. Yan Guoxing gave him great inspiration in trading concepts, fund management and risk control, which made him clearly realize that fund management and risk control are the basis of trading strategy. When trading goes smoothly and confidence is overwhelming, you must not forget about it. At this time, you must have a clear awareness of risks and control the trading rhythm, otherwise large retracements will follow.
Everyone has different personalities, different styles of doing things, and different priorities in thinking about problems, which determines that everyone's trading model is different. However, no matter which trading model is adopted, as long as it suits you, it is the best. "Caesar 368" summarized the qualities that professional traders must have in his eyes: First, they must love trading and regard trading as their career, and they must be diligent in learning, good at thinking, willing to summarize, and never give up. Second, you must have a resolute character, especially when facing risks. Once you reach the stop loss line, you must decisively cut off your position without hesitation. Third, you must always be with successful traders and humbly ask them for advice. It is a shortcut to success.
Every investment winner has a shining point. Learn from their successful experiences, but also summarize the lessons of their failures, find a trading method that suits you, and constantly improve your trading system, you can gradually hear The footsteps of wealth. It may be easy to become a trading star once or twice, but to be a star may not be achieved even if we spend a lot of time and energy, but at least we can have firm beliefs, diligent thinking, and perseverance.