Admit the existence of probability, learn to accept probability, and be responsible for yourself and the result.
Establish a trading system that suits you and avoid arbitrary and emotional operations.
The primary goal of fund management is to ensure survival, survival and re-survival. Living is more important than anything else. Good money management can ensure that you are present when the market comes, rather than falling before dawn.
Learn to pay attention to the trading process itself, including looking for trading opportunities, waiting for admission, making plans, fund management, re-analysis and so on. Doing these things well and making money is only a matter of course and an inevitable result.
The following is an excerpt from the book.
The price of every transaction is determined by the buyer and the seller. Where there are people, there will be emotional and irrational things, and there will be subjective judgments.
The basic factor of victory is good self-control. If you can't control your emotions, it will lead to poor investment performance.
Successful trading is based on three pillars: psychology, market analysis and trading system, and fund management.
Don't attribute the loss to bad luck or find other reasons, learn to be responsible for the result. If you don't trade according to the established rules, you will enter the self-destruction mode.
The key to the problem is not your own trading method, but your own thinking. You can become a successful trader by changing your mind.
Successful traders must think independently. He needs to have enough anti-interference ability, so that he can independently analyze the market and carry out trading decisions.
Remember, your goal is to trade successfully, not to trade in the day. The advantage of individual investors over institutional investors is that they have flexible funds and can choose not to trade, while institutional investors must trade.
Lonely people are more likely to die and have fewer offspring. Group members are more likely to survive, so the tendency to join the group has long been rooted in human nature.
The greater the uncertainty we face, the stronger our willingness to join the group and follow the leader. In trading, because we can't control the price change, this uncertainty makes most traders look for a leader to tell them how to operate.
Plans are made by rational individuals, while impulsive operations are made by assimilated group members. Don't make decisions on the spot, because you will be easily assimilated by the group at that time.
Short-term trends depend on the mood of the group. After experiencing a sharp decline, prices rarely rise sharply immediately.
What everyone sees is the subjective picture in their own minds.
The logical defect of efficient market theory is that it equates knowledge with action. Some people may have knowledge, but the emotional demands of the group often lead to their irrational operation.
If the trend really breaks up, it should not be withdrawn, just as a rocket cannot fall back once it is launched.
When the weekly chart shows that a new upward trend is taking shape, it is the best buying opportunity for the daily chart to break through. The real breakthrough will be confirmed by the volume amplification, while the false breakthrough is often small.
Grasping the trend is the best trading strategy. In the trend, the operating frequency can be reduced as much as possible.
Volume is the steam that pushes the train forward.
The triple screen requires traders to look at the long-term trend chart first and find the entry point with waves against the trend. For example, when the weekly trend is upward, the daily decline will create buying opportunities.
The triple screen trading system integrates different time periods. It uses trend indicators to make long-term trend charts, short-term shock indicators to make medium-term trends, and special buying or shorting skills. It also adopts strict fund management principles.
The triple screen starts from analyzing the long-term trend chart, which is one level longer than the time you plan to operate. The original system used the tilt direction of the weekly MACD column to judge the market trend. The market direction is determined by the relationship between two adjacent pillars. When it tilts upward, it means that many parties are dominant, and more should be done at this time; When it leans down, it means that the empty side is dominant and should be short.
The triple filter tells us to check the weekly chart before looking at the daily chart.
Every time the weekly MACD column jumps up and down, it shows the change of trend. The upward turn below the midline gives a better buying signal than the upward turn above the midline, and the downward turn above the midline gives a better selling signal than the downward turn below the midline.
The second layer identifies waves against the tide. When the weekly trend is upward, the daily decline provides buying opportunities; When the weekly trend is downward, the daily rise provides an opportunity to short.
Adopt tracking payment stop technology.
When the weekly trend rises and the daily volatility index falls, the buying price is set above the previous day's high. If the price rises, the purchase will be automatically closed; If the price falls, the purchase will not be closed; The next day, the purchase price was still lowered to the latest high. The purchase price will be lowered continuously every day until the purchase price is automatically closed or the weekly indicator is reversed, and it will not stop until the purchase price signal disappears.
Stop loss should be set narrower, because the triple screen only operates in the trend direction. If a transaction can't take effect quickly, it means that fundamental changes have taken place behind the market. At this time, you'd better leave quickly. This is the best chance to escape.
Emotional trading is the natural enemy of success, and traders must trade with their own reason instead of following their feelings.
The goal of successful professionals in any field is to reach the best level of individuals. If you do this, the money will come naturally. Therefore, what we should care about is the right transaction, not the money. Treat every transaction seriously, happily, perfectly or cautiously.
The difficulty in sales lies in our attachment to the position. After all, once anything is owned by us, it will naturally become attached to it. Psychologists call this attachment to what they buy "wealth utility". It is everywhere in the financial trading center, just as we are reluctant to throw away the old clothes hanging in the closet.
It is human nature to be eager for quick success and instant benefit and delay losses as much as possible. When people feel stressed, irrational behavior will increase. The real damage comes from several big losses, or a series of losses caused by leveling. Good money management will keep us from being trapped.
People who lose money are often hopeful and unwilling to accept small losses rationally.
The primary goal of fund management is to ensure survival. You must avoid the risk of losing everything, the second is to obtain stable income, and the last is to obtain high income, which must be the priority of survival.
In order to avoid affecting the long-term development, the maximum loss of a trader's single transaction should be controlled within 2% of the total amount of funds.
Keep the monthly loss within 6%. Once the loss reaches this limit, it is necessary to stop trading for the rest of this month, conduct self-reflection and rethink methods and markets.
The reasonable method should be: when your system is synchronized with the market and makes money, increase investment. When your capital increases, increase your position according to the principle of 2%. When your system is out of sync with the market and loses money, reduce the investment.
Never add positions to spread.
If you must lighten up your positions, you must first subtract the positions with the most serious losses.
Admit your mistake at once, and the loss is minimal.
Pay attention to the quality of transactions, find meaningful trading opportunities, make a good fund management plan, and control losses. Concentrate on finding a good starting point and avoid gamblers' psychology, and money will naturally come.
Professional players are always studying the market, looking for opportunities and improving their fund management ability. He focused on improving his trading skills rather than calculating how much money he made in trading. As long as you do it right, you will naturally make money.
It is wrong to start to pay attention to money in trading, because emotions participate in trading and rationality will be blinded.
Closing the position does not mean the end of the transaction. The most important step in the growth of professional traders is self-evaluation and analysis.
Is this a good deal? How about the entrance? Is the initial stop loss set too wide or too narrow? Why? How wide and narrow? Is the stop loss adjustment too early or too late? Did you see the entrance signal? How do you feel at different stages of the transaction?
Get into the habit of making analysis records before and after trading. Just open the position, print out the trend chart at that time, and write down the reasons for buying and the handling plan of the transaction. Print the chart again when you come out, write down the main reasons and list right and wrong. It records the trading process and thinking logic. This process will help us find out the blind spots in our thinking.