The importance of establishing a trading theory in foreign exchange investing

This article is the reflection and exchange of several professional investment experts on the establishment of trading theory. The market is unpredictable, and in order to move forward steadily, only by successfully establishing your own trading theory can you preserve funds and obtain profits. The inner mystery is tied to one heart, please experience it carefully. No distinction: The analytical system and the investment theory are different in the initial purpose, content emphasis, and means of use. As an analytical system, it can be completed in a qualitative way. Since you think trading is an art, how do you evaluate and use subjective investment theory and objective investment theory?

What will you do during the analysis and operation process?

Intuitive trading is a well-trained operational instinct response, and purely objective trading is a mechanical behavior that eliminates human subjective mood swings. Different trading behaviors have their own inherent weaknesses. How can traders solve and correct them (especially at the time of the event)?

Mingzheng: You can enter the rules and go beyond the rules; you can integrate knowledge and action, and integrate the subject and the objective in unity; you are smart and unhindered, and you are good at changing and timely.

Trading is both science and art, a blend of the two; trading is neither science nor art, but a sublation of the two.

Intuitive trading is also acceptable, pure and objective mechanical trading is also acceptable, the key is that you need to be consistent. All have consistent entry and exit principles and risk management and risk control.

Everything has advantages and disadvantages. You can know its advantages and avoid its disadvantages.

Wujian: Maybe I'm a little dumbfounded, so there is an extra layer of confusion about the division and definition of the rules - where the rules lie, in the heart? in the thing? in the thing?

Of course, with your great talent, you must answer like this: Everything is there, and everything in the world does not belong to the Tao, which originates from the Tao. I also... If I want to answer like this, I might as well go to the Taoist priest to draw talismans and sing "rush as the law"

Everything has advantages and disadvantages. You can know the advantages and avoid the disadvantages. - How to determine the benefits at that time (if you can judge at that time, there will be no benefits and consequences)?

Seek advantages and avoid disadvantages, biological instinct, why say more?

Mingzheng: Some trading veterans say that the key to trading is twofold: one is to know how to abide by the rules and act according to the principles; the other is to know when to break the rules; the artistry of trading is reflected in this, and art is inferior to expressing in words.

How to determine the difference between interests at that time (in many cases, if it could be determined at that time, it would have no consequences)?

The form is the quality of the god, just start with the form, structure and trend.Seek advantages and avoid disadvantages, biological instinct, why say more?

No, speculation is a game of human weakness. Just like people can't swim or ride a bicycle. People's innate instincts are often wrong in the face of the market.

The best painters are free to play, but hard to describe, and may require an interview.

The three levels of indistinguishable: Tao are the first to be identified in investment theory. According to the size of the system target set by the trader himself, there are different criteria for judging: if the main trend is possible, the secondary inverse wave will be weakened and its influence will be reduced; while if the intermediate band is operated, the influence of the secondary inverse wave must be placed at the top of the standard; as for the short-term possibility, the focus of the interest standard is on the jump of intraday and intraday clutter. Therefore, there is a difference in the starting standard judgment.

The three levels of trading operation ideas sometimes produce conversions during the implementation process. Therefore, it also forms a standard conversion. Can the inconsistency of trading ideas be determined at this time? If the consistency of investment theory is to be maintained, will this standard transformation hide the crisis in the system itself?

Mingzheng: Brother's problem, I personally think it is easier to understand with analytic geometry.

For a curve, when you choose different coordinate origins, the parametric equations are different, but the curves it describes are consistent. Back to technology, the same is true. The trend you follow may be different, and the trading time can change, but generally you should not reach the opposite conclusion.

Of course, there are also special cases where the price change is facing sudden changes at some inflection points, and technical analysis may point out two or more possible changes. In this regard, you can either do nothing or make a good response first.

Frankly, I don't think technology can handle everything in the market. Skills are gray. There is never an absolute skill. All useful skills are always full of limitations and helplessness, compromises and contradictions; even so, good traders can still change their steps naturally and move gracefully in it.

An important criterion for judging the quality of a technology is its ability to correct or correct errors.

The trend is right under your nose.

Investment theory should capture the main paradigms.

The treatment of the state of mind can usually be placed in the advanced trend, the so-called good is like water!

"Skills are grey. There is never an absolute skill. All useful skills are always full of limitations and helplessness, compromise and contradiction." I feel the same way, fragile delicacy necessarily brings helplessness after vulnerability. The example of Long-Term Capital Management is too shocking - maybe it can be understood this way: the pursuit of the ultimate may be like running to the sun with wings made of wax on, and the closer you get, the closer you are to failure and death!

What I'm wondering is whether mechanical investment theory can really overcome the so-called small probability of mistakes by simply using the high probability of winning? Some people may say that a complete investment theory - especially a complete mechanical investment theory, itself contains the steel correction of mistakes. But if due to market reasons, the usual original investment theory is constantly corrected easily. This will undoubtedly increase the transaction cost and opportunity cost - such investment theory assumes that it is not an inefficient and inefficient system in the normal market, so please ask how to solve this problem?

Osprey: Investment theory is people. No matter how good a system is, what can it do for a person who is not in place?AohuiOn such a formal platform, traders also need to cultivate and match themselves.

People, combining softness and steel, persistence and agility, live elegantly in the market... endless life.