What is taboo in the transaction? Avoid these three behaviors

Classic sentence in a transaction:Those who do the trend die in the concussion; those who do the concussion die in the trend.It is often difficult to distinguish between the shock and the turning point of the trend, and the nesting and conversion of large and small cycles is a difficult problem. For a reversal of the market, it is often accompanied by a trap of breaking positions.

Concussive market, if the position is too large, it will be tied up at both ends, continue to stop losses, losses. Concussion is a favorite of Martin traders, a small level of concussion, suitable for Martin to increase positions, extremely efficient, but once the concussion turns into a big one-sided, there will be an overnight crash. That's why shocks and trends are hard to do.

The short-term has the advantage of the short-term, and the trend has the specialty of the trend. What are you afraid of in the short term? Fear of a sharp rise, because short-term people tend to close their positions quickly. They are unable to grasp the main trend of concentrated rising profits.

The advantages of short-term should not be easily ignored. Successful short-term traders can be found everywhere. But the main problem in the short term is that traders should realize that the profit list only holds a small profit, while the loss accounts for a large one.

The crux of the problem is the lack of a trading system. Chaotic transactions can not withstand the sharp fluctuations of the market. Random chase into the site, random operation, not to mention position management.

Strict implementation of the plan is the premise of the trading system. If the system is not implemented, it means that there is no system. This is the problem of quite a few traders. What do you mean the transaction is getting better and better?Progress is to sum up the laws and avoid repeated mistakes. Avoid detours in repeated transactions.

Trade on the news? Some readers ask that trading can be done better if we only look at the macro analysis and do not need to look at the technical analysis. Do not deny this point of view, nor affirm this point of view.

It is necessary to define that the occurrence of news does not necessarily mean that the market is going in a certain direction. The so-called short profit is often found in the stock market, and it is not uncommon in the foreign exchange market. Some trends are based on market messages, while others are often incomprehensible. Otherwise, how many macro analysts in the world can trade perfectly according to the macro trend?

At the same time, technical analysts should not deny the impact of macro analysis and news on transactions. Taking the recent currency movements in emerging markets as an example, the falling exchange rates of countries such as Turkey, Argentina, Brazil and India generally mean that the volatility in emerging markets is increasing. In that case, it should be said that the probability of the decline of the New Zealand dollar and the Australian dollar is on the high side. To a certain extent, shorting the Australian dollar is an ideal choice under macro analysis.

The combination of technical and macro aspects should be taken into account by traders. Trading is a long-term business. Without experiencing all kinds of market turbulence, accumulating huge profits, and keeping profits, it is difficult to say that you have won in this market. Extreme prices can always wipe out major accumulation and wealth overnight. This has been proved countless times over the years.

During the European debt crisis, for example, gold plummeted, its biggest drop in 30 years overnight, unheard of. In that case, those who are long on gold will lose a lot of money. Not to mention the black swan, such as the Swiss franc, and the pound flash crash. These are the huge potential risks in the deal.

It is difficult to give an absolute trading system to tell traders what are the winning indicators and position management. His view is that trading is a high probability behavior, we do not pursue the absolute correctness of transactions and indicators, we only pursue relatively correct behavior in high probability.

What is relatively correct behavior? The definition is very difficult, each has its own point of view. But we have a good reverse derivation, that is, try to put an end to the behavior of high probability of error. There is a high probability of misbehavior in a transaction, such as:

Typical misbehavior 1: chase the rising market, chase into the larger position, directly trapped.

This figure, which often happens in trading, pulls up in one minute and continues to rise in the next few minutes. What's a good deal at this time? It is by no means buying after the rally. In fact, this is the one-minute trend of the pound when it is close to 09:00 on Monday.

We have made a lot of similar mistakes in the past, and after the breakthrough, we felt that the market was going to soar for fear of missing the opportunity. In fact, such short-term violence often occurs. So, as you can see, there are many traps. Chasing after the rally is the most likely to lead to wrong behavior.

The rational approach is to observe and wait for a considerable correction, and then choose the opportunity to buy.

Typical error behavior 2: inconsistent positions and chaotic transaction logic.

In the transaction, we emphasize that the trading thought and behavior should be continuous. Within a range, your opening, closing, profit points, entry and exit judgment, all rely on a set of fixed logic, within which your behavior has a certain degree of certainty.

This is the certainty in the uncertainty of the transaction. This is also the logic of trading philosophy. Some people say that when trading reaches a certain extent, it becomes a philosopher. Soros' theory of conditioned reflex is also based on his philosophical logic.

Simply understand, trading philosophy is a set of code of conduct. It is an abstraction of self-discipline. If traders want to rise to complete self-discipline of behavior, it depends not only on simple willpower, but also on the understanding of the world. Zhou editor-in-chief believes that this kind of cognition is the philosophy of trading. Cognition is a high level of self-discipline.

So you have to think clearly about whether to open a position of $10,000 with one hand or 0.1 hand. This is not a simple math problem. No matter how many hands you use, it is reasonable and successful, but the problem is that you should not do one hand at a time and 0.1 at a time, which will lead to logical confusion.

Typical misbehavior 3: constantly hesitate to hover between increasing positions and stopping losses.

Increasing positions and stopping losses are eternal topics in trading. When the trade is wrong, some people like to increase their positions; others like to stop losses. In our opinion, there is nothing wrong with this. As long as there is a set of trading logic, every kind of behavior can turn defeat into victory. The problem is that people are most afraid of indecision. At some times constantly increase positions to do Martin, or slowly increase positions and other callbacks; at some times, because of fear, to do a stop loss. When the market came back soon, I began to regret it. The next time it is time to stop the loss, it is a fatal trading habit to increase the position and carry it to the death.

Some people say that it is difficult for us to judge when to increase positions or to stop losses decisively. Of course, it depends on the specific trend and scene of the market. However, these are not fragmented behaviors. You need to establish your own set of behavioral logic and standards between increasing positions and stopping losses. It is important to have effective standards. You can understand that they are pre-plans, trading philosophy, trading system, which is no problem.

When trading, why are 97% of people gradually eliminated in the long-term baptism of the market?In the long run, the uncertainty brought about by market fluctuations will make people lose all their previous efforts; from the perspective of specific behavior, it is also because the rules, logic and philosophy of transactions have not reached a unified height and the intensity of implementation. it has brought about long-term and continuous trading mistakes, and the correction mechanism has not been able to play its role effectively.

Therefore, if you want not to be defeated by the market, it is fundamental to start with rules, logic and philosophy and put an end to high-probability mistakes.