Money is everywhere in the futures market, which is filled with many exciting myths and also exudes frightening blood! In this fascinating market full of magic, the drive for profit makes traders fall into an irrational understanding of the market and make repeated mistakes.
However, the futures market has no memory, and similar mistakes always appear, causing people to make them again and again, and fall into the abyss. Therefore, clarifying the common problems of futures market operations, understanding the basic teachings of the market, and using this as a mirror will be issues that traders who are aspiring to succeed must often reflect on.
1. Loss is the cost and price of success. Learn to control and learn to survive.
In the futures market full of competition and risks, there are neither generals who always win, nor generals who always win. Defeated soldiers. To do futures trading, you must have the most basic mentality: face losses calmly and learn skills from failure.
In speculative trading, no matter how high-quality or experienced the trader is, there is always the possibility of losses. Even for some investors who are accustomed to using trading systems, it is inevitable that they will get into trouble for a period of time. And the longer the transaction lasts, the harder it is to avoid this dilemma. Profit and loss are the results of the objective rise and fall of market trends, and are not based on people's subjective will, nor will they be changed by our emotional expression.
Since the history of futures, no expert has always been victorious, and no analytical tool has proven effective every time! Remember: we are humans, not gods! People's understanding of things is always limited by time and space, and when faced with a changing and moving world, careless consideration and miscalculation are inevitable. Recognizing that your mistakes are inevitable is the first step towards success. Abandoning the dream of making money is the prerequisite for having a chance to make money. To treat losses correctly, we must first recognize that people tend to be close to each other. If you make a mistake, you must be brave enough to face the fact of failure. It is normal to suffer losses due to misunderstanding; to treat losses correctly, the second step is to strictly implement the principle of "do as much as you can afford to lose". Do not misappropriate the capital of your main business or use your living expenses, but use part of your spare money to invest. It doesn't harm the overall situation and is harmless, so there will be no psychological pressure of being unable to lose or losing.
In your striving for excellence, there will be times when you go astray and get caught up in mistakes. Challenges not only require facing countless difficulties, but also rely on an inner belief in one's own potential. Strive to transcend mediocrity - to feel the excitement and joy of realizing your ideals. As you continue to acquire knowledge and gain experience, remember that the skills and abilities you acquire are the continuing starting point for your lifelong endeavor. Yes, the road to becoming a mature investor is not smooth. After countless market blows, you may only see a slight glimmer of light. The experience of failure enables us to gain real trading ability, and only failure can ultimately improve our trading ability. The futures industry, like other industries, can only allow a few people to succeed. Therefore, we must have strong perseverance and firm confidence, constantly improve our trading level and ability, and use discipline to restrain the weaknesses of human nature. Life is like futures, and futures are like life. Greed and fear, pain and joy are always with us, allowing us to experience the ups and downs of life and the painful struggles of human nature in front of a small screen. However, all of this also enriches our lives. , red and green K-line charts, and ups and downs of curves make our lives full of passion and dreams. Maybe one day, we will reach the other side of freedom of wealth and freedom of life!
2. There must be victory or defeat in trading, and you must have the faith and confidence to lead to sustained victory!
Confidence is equally important for traders, but it is very difficult to be confident. There is a saying in the market: plan your trade, trade your plan. However, due to the uncertainty of the market, it is relatively easy to plan your trading, but when trading your plan, it is often difficult to execute your trading plan due to the uncertainty of the future. When you plan your trade, you are full of confidence, but when you execute the plan, your confidence is often lost to the uncertainty of the market.
I don’t know how many people have told me that if they can stick to their trading plan, they will achieve great achievements. However, in reality, they are still struggling in pain.
Maybe in fact, if he really persists, it will bring him success, but why doesn't he persist? Why wouldn't he stick with a plan that would bring him great success? Why would he not believe in a plan that would bring him great success? Executing a trading plan requires hard work and huge sacrifices, and requires a lot of costs. Only when you make honest efforts and are prepared to pay can you truly execute your trading plan. This is an important fact that many investors ignore. Trivial yet crucial details.
Only with confidence can you execute your trading plan. Confidence comes from certainty, and the market is always in uncertainty. Therefore, being confident requires a cost, and you need to pay a cost to eliminate the interference of uncertainty and make yourself confident. Another reminder is that you should be confident but not overconfident! Numerous facts over the years have proven that overconfidence often brings harm to investors. When you think about how great you are, the market always seems to magically bring you back to reality in a humiliating way. This is the dialectical unity of contradictions.
3. Diligence and accumulation are trading chips other than money!
I believe in strong goals and the power of enthusiasm. Genius is fierce enthusiasm. Every genius must be the product of enthusiasm! Success loves people who are full of enthusiasm. This kind of sincerity that can enable people to accomplish anything. This kind of self-loyalty is the most fundamental factor for traders to achieve success!
The futures market is a market that requires the most diligence and hard work. The acquisition of intelligence and skills is particularly necessary to survive and develop in this risky market. No normal person would let a doctor who has not received appropriate training and relevant qualifications operate on him, nor would he let such a lawyer defend himself in court. This is the same in the futures market. Do your best at all times. How much effort you put in now will be how much you will gain in the future. In the same way, the achievements you achieve today must also originate from your efforts yesterday!
4. The actively beating price is the market; personality, habits and emotions are also the market
The futures market is unpredictable, with big wins and big losses, which tests investors’ humanity and cultivates their character. , I believe no other industry can compare. There are many reasons why traders fail, but it turns out that 80% of losses are caused by personality and psychological factors. Only a normal mentality can produce ideal results. As in Jean? Agasrit said, "All your wishes come true. Success comes because of you."
The enemy in life is actually in our hearts. In terms of investment behavior, the faces of greed and fear keep repeating themselves! The Agama Sutra says: "Don't think about the past, don't wish for the future; the past is gone, and the future has not yet arrived. You should think about everything in the present and live in the present." There is a saying in the Tao Te Ching: "The crooked part is complete, the wrong part is straight, the hollow part is full, the disadvantage is new, the less is gain, and the more is confusion." Things in the world are unpredictable, but "things must be reversed at the extreme, otherwise they will be able to come to peace." This is impossible in the world. The natural force of resistance, the cyclical principle of "the sun rises and sets, the flowers bloom and fall" remain unchanged. The investment market itself is a zero-sum game arena. There are no absolute pros and cons, no absolute victory or defeat. Be cautious while being optimistic, but a turnaround is already brewing during pessimism. Without bulls, there will be no shorts, and without a decline, there will be no rise. If there is no ups and downs, there will be no market.
Investors themselves and their own emotions are the enemies of survival and development in this risky market. During trading, traders often use their own emotions as self-inflicted weapons to fight the market. In fact, the market is the market. The market has no feelings or emotions. It has never hurt you from beginning to end. What is ridiculous and sad is that most investors are defeated by their emotions.
Furthermore, you need to understand your own personality characteristics, whether you are stable, tenacious, and brave, or irritable, restless, and timid. This will help you develop good trading habits, and then establish your own trading system and form a good trading system. Your own trading style plays an important reference role. Just as humans are products of nature and cannot defeat nature, investors are also very small and fragile in front of the market. If the market can be accurately predicted by most people, then the market will lose the basis for its existence. As an investor, only by adapting to the market, following the market, and going with the flow can we survive in the market.
Laigen Tan mentioned: "The bamboo shadow sweeps the steps without moving, the moon wheel passes through the swamp water without leaving a trace, the water flow remains calm despite the emergency, and the flowers fall frequently, but the mind is at ease." If a trader If you can stand in a detached position calmly and calmly without being greedy or fearful under the stimulation projected from the outside world, you will naturally be able to move forward and retreat freely. Pursuing a world of inner peace is the biggest difficulty in crossing the investment field.
5. Trading skills and profit models are equipment. If you want to win first, you must first be undefeated!
In fact, friends, your entire trading life is running a battle, fighting a war that has a beginning and an end. I think each of us hopes that our war will end in victory. Way over. We can all understand that the entire war is composed of many battles. Every transaction you make is a battle and an integral part of the entire war. Therefore, we must fight every battle carefully, which inevitably requires Our actual combat skills must be excellent! In the futures market, it is not enough to rely on wisdom alone. If you are still making profits for more than a year, then you must rely on techniques-stable and disciplined trading techniques as your consistent backing.
If you don’t have your own trading method, it will be difficult to form a real market advantage. The so-called forming one's own advantages means that on the premise of establishing and owning a profit model suitable for oneself, one can give corresponding judgments and signals of participation direction in response to various market trends and market changes in actual operations. Lacking this, even with the best money management technology in the world, traders will struggle to win. However, in order to form a market advantage, traders must make great efforts to succeed in the futures market, which is inseparable from hard work. Especially before obtaining a successful profit model, they will definitely encounter ups and downs and setbacks. With market advantages, and then supplemented by excellent fund management and risk avoidance techniques, you can maintain long-term and stable high rates of return.
6. Marching and fighting requires formation of troops, and trading performance focuses on fund management
The book "The Futures Game" said: "The best way for traders to destroy themselves is to Investing too much money so that you can't get out of the dilemma caused by one or a series of bad transactions." Futures investors with a gambling mentality always hope to make a fortune. Like a gambler, he frequently raises his bets, wishing he could risk all his wealth and life on the futures market until he loses everything. When the futures market fails, they often risk all their money and put all their money on the line. Most of these people end up bankrupt.
Investment is a function of time, and it is also a long-distance race. So it's not about how fast you run, but how you finish the whole distance. We often see investors who have made very high profits over a period of time. Buffett’s investment income level of 23% over 50 years is nothing to many people. But he seems to be the only person in the world who has achieved this result in this time. Therefore, if you earn 500% in 3 months, it does not necessarily mean that you are successful. The important thing is that you can also have stable income in the "long-distance running". If you want to achieve this stable income, you must control money management.
Fund management is a skill as well as a knowledge: what proportion of funds are needed in the early stage of a trend; how to add funds to positions during the development of the market; how to adjust funds when the trend pulls back; When the market turns, how to take action, etc., must not only be scientifically allocated, but also consistent with your own personality and the requirements of the system! But no matter what kind of management is adopted, it is centered around the original intention of reasonably reducing risks and stabilizing returns. But if you don’t understand money management and do it blindly, you will inevitably fail!
7. Success depends on persistence, and success or failure all depends on execution!
Fighting in the futures market is just like the army on the battlefield, and special attention must be paid to discipline. Every step in your go-to-market plan is part of the overall deployment strategy and cannot be changed on the fly. All your revisions must be planned in advance and executed only when necessary. Any loss caused by violating discipline under any circumstances during the trading process is your own fault. The accidental and lucky profits should cause us to Objective hatred and whether you have a clear understanding of it is one of the differences between amateur and professional traders.
A sage once said this: Winning in the futures market has nothing to do with intelligence, but everything to do with investors' methods, principles and attitudes.
Especially the execution of discipline. A large part of traders in the market will eventually succumb to the two most common emotions of fear and greed, while professionals strictly implement their strategies without exception. Top traders seem to have amazing discipline. If everyone's discipline is so strong, more people will make money in the market, and the competition in the market will be even more cruel!
The futures market is a very risky market. When it creates high profits, it will inevitably be accompanied by high losses on the other side. Strict enforcement of discipline is the only way to avoid major losses and move towards profits. Two methods.