How to have a good trading mindset

1. Integrate your heart and hands, and don't let your positions affect your analysis and operation ideas. "Experts rarely stop losses, because the technical position squaring signal is always sent before the capital stop loss signal. In and out are smooth. And low hands frequently stop losses, because in order to expand the position artificially narrow the stop loss level, and ultimately cannot resist normal fluctuations." This is a paragraph from the post reposted by Shenzhong Forum Cloud Stroke. I can't think of a more concise explanation than this. 2. Do what you can, how much risk tolerance you have to make large orders. "Fund management" is a misunderstanding. The correct formulation should be "risk management". Make orders according to how much risk tolerance you have, not according to how much money you have. The loss of each trade should be controlled within a percentage of the total capital. The predecessors have various opinions, some say 10%, some say 5%, and some say 1%. In fact, the difference is that the risk tolerance is different. If I have a job with 50,000 annual salary and invest in 50,000 futures, I will set the loss of each trade loosely at no more than 10% of the total capital; (If I want to set 1%, can I still do it?) If I invest the 500,000 I have accumulated for many years in futures and hope to get rich, I will strictly control the loss of each trade below 5% of the total capital.

If friends entrust me with 5 million, I can also share the benefits of profit, I will strictly control the loss of each transaction below 2% of the total capital, because even 10% of the loss is difficult for me to repay; if I am a professional fund manager, the fund I manage is openly recruited to the society, I must strictly control the loss of each transaction below 1% of the total capital. Annual returns of more than 10% can be traded, 20% is simply excellent performance. If the average annual return is 30% over a 20-year period, then I have become a master. The above is just an analogy, risk tolerance is your mileage may vary, a 10 million person takes 1 million to do futures, and a person with all the savings 1 million used to do futures, although the same funds, but the operation of position control is definitely different.

3. Know yourself and know your enemy. The money we earn in the future market is paid by others. If others read the wrong market, we can make money by looking at the right market. Everyone sees the right market, so we have to see it better than others to make money. Let's make an analogy (I'm going to make an analogy again). If there are 10 people in the market who trade copper, and the same number of transactions, 9 people think that copper can catch up by 2030, and 1 person thinks that it should rebound and sell short by 2030. When copper reaches 2030, because everyone wants to buy it, of course, it is a whizzing pull, but the result is that 1 person sells short and loses money, 1 person buys more money, and there are 8 people who want to buy things that they didn't buy. This means that although you see the right market, you can't make money if you don't see it better. It's the same in any industry. You must have a core technical advantage in order to defeat your competitors. My old bag has a technical advantage in copper, so I will make copper. If I don't understand soybeans, I will touch it less.