I read a post about these articles the other day, and I know the difference between easy to do and difficult to see theater and theater, and I feel that what you say is very reasonable, I've been wanting to write this article for a long time, but unfortunately I can't always calm down, today I'll see if this article can solve these doubts in your mind.
Let me tell you again, I read many books before going to market, and although I still know only half of the technology and the market, I learned from my predecessors two basic principles of survival: strict stop-loss and smooth trade.
After three months, I looked back at what I had done, stopped losing, but the good deal was a mess, at the beginning I still remembered to do good, the first few notes were good, but after that heavy loss, I was as stubborn as the devil, thinking that the trend must fall, the principle of good trading was already thrown behind my head, all the analytical results were on the one side and the reverse side, thinking that the big fall must still be behind me, my continuous release, continuous loss, and after the loss, I finally found out that I was in a clear upward trend, and I suddenly thought of myself once again three months ago: I must be goodbye.
Then the problem is clear, it must be remembered again that the bullish bullish trading bullish, three months passed, indeed I tasted the sweetness of the bullish, but I also found out that I still have a reversal operation, and sometimes I do not know whether it is an uptrend or a downtrend, the problem is easily solved, I use a horizontal line as a boundary of more space, the price is above the average line only to do more positions, the price is below the average line only to do more positions.
There is also the problem of stop loss, for a long time after entering the market, I only knew the stop loss, but did not know that the stop loss must be a definite point, so I have several times when I found out that I could be wrong but due to hesitation expanded the loss that should have been very small, paying unnecessary losses. My character is very decisive, but why would I hesitate to delay the best stop loss time?
There are a lot of similar problems, but they are not difficult to solve, because the creation of the rules of yoga goes through the entire process of participating in solving problems, yes, the truth of the transaction I am going to say is the yoga rules.
The opposite of the rule-of-thumb is the rule-of-thumb, the rule-of-thumb is a neutral term, and the rule-of-thumb is unflattering, but in the futures market it is a little different. Analyzing market laws, analyzing one's own mistakes, analyzing the characteristics of excellent traders, etc. are the correct methods of applied analysis. And almost all of us make the same mistake of making the rule-of-thumb as our basic trading method. It can be said that on the first day of entering the initial market, we begin to adopt the wrong trading habits.
In contrast to what analysts often predict, good traders follow the rules and never make any predictions. Good traders are not good analysts, and good analysts are not good traders either. The two are fundamentally different because of their different locations, and the methods they use to deal with the market are also different. The use of analysis and the use of rules are very representative in these two categories of people.
Most retail traders are in between analysts and excellent traders, and the rules of operation are there, but at the same time they are full of a lot of subjective analysis and unreasonable speculation and speculation about the direction of the so-called dominant trend, and the most obvious subjective characteristics of the speculative speculation are the main root cause of the countervailing operations, and the bad operating habits of the speculators are not the result of the speculative speculation. The result of the wrong method of operation is inevitably a sustained loss, and for most retailers, the funds are untenable, the war is over, the losses are over, and the final loss of confidence can be as little as possible.
It is clear that almost everyone, even a beginner, knows some of the correct trading concepts: smoothly, light positions, long-term profits are better than short lines, etc., but the exact opposite of these correct perceptions is that in practice, counter-trends, heavy positions, frequent short-term operations are so common, if you are just a know-it-all and can't go for the short line, then you think you are right but still do it backwards, have the right understanding, and the result is not the same. Then is there really no way to connect the know-it-all with the know-it-all?
A friend asked me how to increase profits, and I said, stop-loss, stop-loss is difficult. It's hard to have that complex mindset of fear of falling back after winning, I'm sure everyone has that experience. My long-term turnaround experience is difficult not because of technical solutions, but because of overcoming psychological barriers, which are caused by one's own natural personality defects, but once one crosses psychological barriers, the technical solution is easy, still the rules, a simple tracking loss rule completely solves the problem, haha, some seemingly difficult problems are not difficult to solve if the method is used.
The topic of rules and analysis is rarely discussed, but it is the most important criterion that distinguishes the average investor from the best traders, and systematic trading is the ultimate trading idea of operating in a completely regulated, objectified, scientific way, without any mystery.
Two points need to be emphasized: first, the rules must be made in accordance with objective reality, I began to understand the use of rules to restrict entry three months after entering the market, unfortunately, I used a technical method that has serious flaws in itself, and failure is inevitable. The establishment of correct trading rules based on objective reality is a very key point.
In fact, by the first half of the year I had abandoned most of the predictive and analytical techniques, fully recognized and started to apply some important points of the Adam's theory in trading. After two months I understood the principle of simplification of trading, abandoned all the glib and untrustworthy tools and turned my attention to the study of a single price feature, which also marked the end of my introductory stage and began to move into the longer progression stage. Using rules to solve the problems I encountered was initially just a method I could use when thinking about how to solve the problem, only the method I thought was right at the time, completely touching the stone river.
This article is the last in the series I feel, compared to the previous ones, it contains the most gold, it is also the most difficult to understand, it is easy to understand the meaning of the article, but it is difficult to understand the meaning of the article, but it is not possible for most people to understand it, it is really easy to understand and it is already applied to trading.
Translated from the Tibetan Book of the Dead