Preface

When it came up in December, it was a duel. On one side, it was a fire, and on the other side, it was a hell, which was extremely divided.

In fact, this kind of time is the most suitable for reflection and summary, because every day there are trends that are beyond your own forecast. I have been sorting out my stock selection ideas recently and plan to establish a medium-term trading strategy. Suddenly, I found that Bo Ge shared an article, and specially arranged and made nine reading notes in combination with his recently summarized problems. Welcome to communicate with us.

Before you read it, let's summarize three points in advance:

First, the famous trading masters who are recognized by the market analyze themselves more, without saying anything about K-line combination and reversal theory, that is to say, psychological factors are the main reasons that ultimately dominate everyone to make money or not;

2. Make a set of long-term trading strategies of your own, such as confirming whether you are a chasing style, a bargain-hunting style or a band style, and whether stock selection is technical stock selection, hot stock selection, capital priority stock selection, etc., and pay attention to recording, verification and review later. There are thousands of stock market indicators, theories and stocks, and the ones that belong to you and are most familiar with you are the best;

Third, pay attention to analysis beforehand, and make predictions and responses. For example, tomorrow, Li Sichen boldly predicts that the opening will be higher (nonsense). If it rises and opens up the offensive space, I will add 1% positions; For example, I generally feel that the atmosphere is not good this week, but the Internet has structural opportunities. Since it is not a trend opportunity, then 4% of the positions can participate in the Internet.

nine ace traders in the world

Marty Schwartz

champion trader. In the first ten years of trading, he often lost money and was on the verge of bankruptcy for a long time. After 1979, he became a top trader. He participated in the four-month trading competition in 1 national investment competitions, and won 9 championships, with an average return on investment of 21%. The money he earned was almost the sum of other contestants. He believes that the most important trading principle is fund management.

His opinion:

If I'm wrong, I have to get out quickly!

whenever you suffer setbacks, you will feel very uncomfortable. When most traders suffer heavy losses, they always want to recover them immediately, so they are getting bigger and bigger, trying to recover their disadvantages at one fell swoop. But once you do this, you are doomed to fail! After I suffered that blow (near bankruptcy), I would immediately reduce my business. What I did at that time was not to make up for the loss, but to regain my confidence in trading.

In fact, anyone who engages in trading will experience a period of continuous profit. For example, I can make a profit for 12 days in a row, but I will definitely feel very tired in the end, so I will reduce my business immediately after making a continuous profit or making a significant profit. The reason for encountering losses is usually that you don't stop after taking profits.

Note 1: Wrong stop loss is an iron discipline! However, this is based on the fact that most of us are at the right time, otherwise most of us may be the most miserable back and forth meat cutters if we keep stopping.

Michael Marcus

a genius trader. From 1969 to 1973, I often lost all my money, and I was in a circular formula of borrowing money-losing money-borrowing money-losing money. After 1973, it began to move towards a successful trading road. In August 1974, he joined the commodity company as a trader, and the company gave 3, US dollars as a trading fund. About ten years later, the yield of this fund was about 2,5 times, and it was expanded to 8 million US dollars.

His point of view:

The main reason why I keep losing money and losing everything is that I don't have enough patience, so I ignore the trading principle and can't rush into the market when the general trend is clear.

There are fewer and fewer trading opportunities in line with the principle of profit today, so you must wait patiently. Whenever the market trend is completely contrary to my forecast, I will say: I originally hoped to make a big profit from this wave of market, but the market trend is not as good as expected, so I simply quit.

You must stick to the good cards in your hand and reduce the bad cards in your hand. If you can't stick to the good cards in your hand, how can you make up for the losses caused by the bad cards? There are many quite good traders who finally spit out all the money they earned, because they are unwilling to stop trading when they lose money. When I lose money, I will say to myself: You can't continue trading, wait for a clearer market. And when you get a good card, you should hold it patiently, otherwise you will not be able to make up for the money you lost when you got a bad card.

note 2: it fully illustrates the importance of timing, and you should be able to wait patiently for the opportunity. For example, in December, Ermeng said more than once that he had been looking short. Seeing that there were more than ten daily limit in his own choice, he was afraid to miss the opportunity and bought some bottom positions, which in essence caused about 6% losses to reach the stop loss line. More seriously, if we continue to adjust to the end, we will miss a wave of bargain-hunting because there are half positions and many stocks, among which there is a slight loss, and it is basically impossible to have great courage to continue to add bargain-hunting to large positions.

Tom Baldwin

agrees that patience is the most important thing in trading.

His opinion:

The most common mistake made by many traders is that they make too many times.

they don't choose the right trading opportunity carefully. When they see the market fluctuation, they want to enter the market to trade, which is tantamount to forcing themselves to engage in trading, rather than waiting patiently for the trading opportunity in an active position.

we can make a profit because we have done a lot of work patiently before entering the market. Once many people make a profit, they will take the transaction lightly and start to operate frequently. The next few losses will make them unable to cope, resulting in huge losses, even losing their money back.

note 3: I agree. I made this mistake recently. It is tantamount to violating your own heart and forcing yourself to trade. On the one hand, patience will be lacking, and on the other hand, you will be nervous when you encounter a little trouble.

Bruce kovaner

a global foreign exchange trader. From 1978 to 1988, the average annual rate of return was 87%, which means that when you invested $2, in his fund, your investment could grow to $2 million in 1 years.

His view:

The most important thing in trading is risk control.

whenever I enter the market, I always set a stop-loss point in advance, which is the only way to let me sleep peacefully. I always avoid setting the stop loss point at the price that the market can easily reach. If you analyze correctly, the market will never return to the stop loss price. If the market reaches the stop loss point, it means that the transaction has made a mistake.

my worst deal was made on impulse. According to my trading experience, the most destructive mistake in trading is being too impulsive. Anyone who makes a transaction should follow the established trading signal, and never change the trading strategy hastily because of impulse. Therefore, not being impulsive is the first thing in risk control.

note 4: it is recommended that the stop loss of 5%-6% is too harsh and interfered by other reasons, but the retracement of more than 8% actually shows that the transaction has made a mistake. At this time, I have to ask myself, if it is now, will I buy this stock again? If not, stop loss and leave. If you can, consider adding positions when it falls by more than 15%.

Richard Dennis

Richard Dennis is a legend in commodity trading. At the end of 196, he entered the commodity trading industry. In the first few years, he often lost all his money. After 197, he started on the road to success. In 2 years, he turned 4 dollars into a fortune of about 2 million dollars.

His opinion:

He thinks that the most important thing in trading is calm.

Traders are like boxers. The market will give you a beating at any time. You must keep calm. When you lose money, it means that the situation is not good for you. Don't worry, take your time. You must minimize the loss and protect your capital as much as possible. When you suffer heavy losses, your mood will be greatly affected. You must reduce your business and consider the next transaction at intervals.

Almost everyone can list 8% of the trading rules we have taught, but they can't tell people how to stick to these rules when the market is unstable. Therefore, the calm implementation of trading rules should enable you to grasp most of the market outside history.

Kyle wystan

Kyle wystan, a winning trader. I used to be a real estate agent, and then I became a trader. At the beginning of more than four years, losing money is like losing money, losing money again and again, and saving money again and again. After more than four years of failure, he began to move towards the road of success, and has always maintained a very high rate of interest. A person familiar with the matter revealed that he had watched his 1 trading records, only a few of which were losses. He thinks that the most important thing in trading is to be cautious at all times.

His opinion:

Why can I achieve such a high rate of interest? That's because I'm afraid of the vagaries of the market. Successful traders are usually people who are afraid of the market. The fear of market trading makes me choose the right time to enter the market carefully.

most people don't wait until the market is clear. They always enter the forest in the dark, and I always wait until dawn. I don't predict the direction of the market change before it starts. I always let the market change tell me the direction of the market change. Choose and wait for a foolproof opportunity to attack, otherwise I have to give up. This is my most important trading principle.

note 5: there is no problem with this idea. the difficulty lies in whether you have the courage to catch up with a stock that grew 3% the day before yesterday, 1% yesterday and 3% today. Or did you dare to catch up when the upward trend was established yesterday? I believe that there are two types of investors in China. One is willing to chase after the rise, and the other is scared to enter when it rises, especially when the market opens higher. Everyone can respond to themselves.

the trading strategy should be flexible to reflect the changes in the market, so as to show your highly cautious fighting style. The most common mistake made by most traders is that their trading strategies are always the same. They often say, "Damn it, how come the news is so good and the market trend is completely different from what I thought?"

why should it be the same? Isn't life always full of unknowns? When your important stop loss point is broken by the market, it is very likely that you have encountered a volatile market or changed the trend. How can you continue to operate this trend at this time? Therefore, at this time, you must be very careful to wait for things to become clearer, instead of rushing to continue the operation.

note 6: contrary to the previous person, it is time to stop loss. should we continue to wait for the trend to be clear or strictly enforce it? Different people have different opinions. The charm of stocks lies in it.

Paul Dude Jones

An aggressive operation artist. In September 1984, Jones founded the Dodd Futures Fund with 1.5 million US dollars. By October 1988, the fund had grown to 33 million US dollars. He has a dual personality, is quite easy-going in social situations, is an approachable, modest and polite gentleman, and gives orders as if he were a fierce and cruel chief executive when trading.

His view:

The most important thing in trading is self-discipline and fund management.

when I lost 7% of my funds at one time, I decided to learn self-discipline and fund management. During the operation, I will try my best to relax. If the holding position is unfavorable to me, I will play; If it's good for me, I'll stick to it.

Therefore, when you are in a bad trading situation, reduce or stop trading, and when you are in a good trading situation, increase trading. Never rush into the market without your control.

Note 7: You still have to believe that stock trading depends on your hand. The logic behind it is that the rising and falling logic of the market during this period is consistent with your potential logic, so pay attention to incremental operation when it happens continuously. When there is a mismatch, pay attention, leave the scene and wait and see, and make a simulation judgment. Making money is a lifelong career, even if you miss a short market, it doesn't matter

secota

genius trader. Sekota used the computer trading system to operate for his clients and himself. From 1972 to 1988, the return on investment was almost unbelievable. For example, one of his clients invested $5,, and by 1988, the capital increased to $12.5 million. He thinks that the most important thing in trading is to be willing to change yourself, otherwise you will never succeed.

opinion:

I think transaction and psychology are actually two sides of a whole.

The financial market is a good place to explore personal psychological barriers.

What happens to you must be a reflection of your mentality. It is difficult for a failed trader to become a successful trader, because they don't want to change themselves at all. In fact, every loser has a subconscious mind in his heart, so even if he succeeds, he will unconsciously destroy the fruits of victory. Everyone can get what they want in the market. The vast majority of people have a gambling mentality when trading, and they like to fight for a heavy position. Therefore, you must change yourself in this respect. Throughout the ages, there is no guy who is not finished with heavy positions.

when trading, you should take the initiative to be yourself according to the defects of human nature. For example, when I am unlucky in operation, in the face of losses, I will continue to reduce my business or even stop operating. Instead of emotionally increasing the transaction, I hope to save the decline, because this will definitely cause heavy losses, which is simply self-defeating.

note 8: continuous Man Cang operation is the mistake mentioned by secota, and we may feel that we can bear the risk of losing half of our own money in the operation. Of course, Man Cang has no problem with this situation. But when the amount of money invested in the stock market has made you sleepless, you should consider the control of the position. But every day, you have to struggle with yourself or regret why you didn't buy more, or regret that you really should buy less. In short, it's all wrong. This is actually very difficult.

Larry Hite

Hite established Mingde Investment Management Company. According to statistics, the company's annual return on investment is always between 13% and 6%. In April 1981, the company's capital was only 2 million US dollars, but by 25, it had grown to 8 million US dollars. The biggest feature of the company is not to obtain the maximum return on investment, but to maintain the sustained and steady growth of return on investment through strict risk control. Hite believes that the most important thing in trading is to follow the trading system and risk control.

His point of view:

Some people will change the trading system when losing money, while others don't trust the trading system at all and doubt the instructions issued by the trading system, so that they often go in and out of the market according to their own preferences, and I always follow the trading system.

I don't engage in trading for excitement, but for victory. This kind of trading may be quite boring, but it is quite effective. When I get together with other traders and they talk about their thrilling trading experiences, I always keep silent, because every transaction is the same to me.