However, how can we make big profits and make small losses?
Let's see how Michael Magaz, who has such a successful experience, did it.
Michael magaz is known as one of the investment wizards. After graduating from college, he worked as an information officer in a futures company. He deeply loved futures investment and trading, resigned from his paid position, served as a short-term market representative, and was finally hired as a professional speculator to manage funds for the company. Magaz has been a professional speculator for many years with outstanding achievements. His fund profits have repeatedly exceeded the combined profits of other fund managers in the company. However, Magaz's early speculative experience was not smooth sailing. At the beginning of his career, Magaz failed again and again. Repeatedly, Magaz's fund account has been cleared.
Magazi's initial defeat experience is vivid, but the most painful lesson actually comes from a successful battle. Magazi lost for no reason because of premature liquidation. It is equally important to boldly win the opportunity of profiteering and give up the peace treaty as soon as possible in the loss. It is an important condition to make the best use of opportunities to win huge profits. Don't rush to get cash from small profits, so as to avoid regret afterwards and lead to poor mood and health. Magaz said: "If you don't make good use of the election to win money, if you win all of them, how can you make a profit to fill the lost business?" . As a successful professional speculator, Magaz certainly has other advantages to win this battle.
In addition to adhering to the principle of winning everything, another important commandment of Magaz is to remember to put all your eggs in one basket. Magaz was impressed by the lessons of excessive speculation. He once met with waterloo on magaz's road to success. Since he started from a small account, his net worth has accumulated to $30,000. At that time, Margas thought that plant wilt might reappear, which led to the loss of glutinous rice. Wishfully used all the funds to buy rice futures contracts, and the whole army was wiped out.
In the second similar experience, Magaz bought the timber futures contract with all his wealth. Due to improper use of funds, the nightmare almost came again. It can be said that the price of the warehouse cannot be issued. In the end, although it can survive safely, it will also turn defeat into victory. However, the above two important battles made Magaz more cautious in the subsequent battles. Magaz's business philosophy is that each business idea only allows 5% of the loss amount. In addition, Margas believes that it is also very important to make a stop loss in advance before entering the market. If the entry fails, the contract will show a book loss. When the market began to feel confused, Margas suggested to close the position first, so as to minimize the risk and restore reason. The most important thing for speculators is to have their own opinions and consult other experts, which will only become more and more rigid. Everyone will have their own strengths and weaknesses. Margas believes that if too many people's opinions are adopted, the result will be a combination of personal weaknesses and shortcomings, and the consequences can be imagined.
Finally, Margas thinks that trading should not be too frequent, and it is best to seize the opportunity to attack, otherwise going in and out will become a kind of enjoyment, such as self-destruction of the future.
Magazi changed from a failed speculator to a victorious general, and his trading principle is trinity:
1. Basic factors
2. Chart analysis must send the same signal.
3. When the market tone should match the market trend.
Only when these three factors cooperate with each other will we begin to re-engage and attack. Most of magaz's profits come from Sany's transaction.
Finally, for speculators and friends who often lose money, you can look at magaz's valuable advice:
1. You can only lose 5% of the funds in each transaction, so you can make 20 mistakes before you are wiped out. As long as you can analyze the correct rate according to the normal 50%, you will make money as soon as there is wind.
2. Stop loss orders must be placed before entering the market. Stop loss orders should be practical, and you can't deceive yourself. Stop loss orders must have a stop loss order to leave the market, so as to ensure that you immediately lighten up your position at a certain price. Even if it's only five minutes after entering the market, when you feel dangerous, don't hesitate to close your position, even if your agent thinks you may be mentally ill.
You must act arbitrarily. In fact, many excellent speculators, each with their own strengths and weaknesses, decided to bet after visiting everywhere. As a result, everyone's shortcomings were added together, and the consequences were naturally unimaginable. Many experts themselves are not real speculators entering the market, and "children are not fish, knowing that fish is happy." Another disadvantage is to make your self-confidence decline, which leads to timidity and makes your trading system inconsistent, half-hearted and inexplicable.
4. At the same time, we should insist on limiting the number of on-site transactions. As the saying goes, if you get too much, you will eventually meet a tiger, if you do too much, you will make too many mistakes. We should seize the best opportunity before opening the market. Whether we can wait for the opportunity to enter the market is the key to the success or failure of investors.
In order to know their trading status, investors can draw a chart on their account net value every day, observe the trend of net value and know their advance and retreat. This is a feasible way. It is helpful and beneficial to speculation. When your net worth is declining, it will naturally constitute an early warning signal worthy of attention. There is no other way to survive in the speculative market. When you feel that the road ahead is vast and you can't agree, the best way to deal with it is to leave the market for a while, have a rest, and then join the battle after you regain your inspiration. According to past experience, there is no harm in this. After a short rest, you will be clear-headed and make good progress in most of your grades.