The essence and core of trading is the trader himself

The essence and core of trading lies in "people". Sometimes when one's skills and trading habits are insufficient, one has to lower one's head and ask others for advice. Controlling risks is always the first priority, learning from each other's strengths and weaknesses, and improving the trading system becomes an instinctive reaction. To face various uncertainties in the market, improve one's comprehensive literacy, so that investment can be sublimated in a life with a good margin of safety, including your family, children trading, physical health, parents' pension, etc. This is perfect.

Trading itself is a game of probability. For a single trade, it is possible to win or lose. There is no 100% thing. In this way, our vision is enlarged. If we do not pursue the success of a single trade, but the success of the whole, then the answer comes out - opening a position is the least important.

Opening a position can be done without any conditions. Nothing can ever tell you that it is right to open at this point and wrong to open at that point. Your own trading habits and trading principles are the only reason to open a position. Opening a position is not the core of trading. The core of trading is how to optimize the processing of orders as much as possible after opening a position. What traders need to do is to make the wrong order lose as little as possible and make the correct order earn as much as possible.

Since the market is chaotic and unpredictable most of the time, traders need to establish their own trading principles. What kind of trades can be considered correct trades? In my opinion, trades that are quickly out of cost are the only correct trades! Only such trades can have the idea of making as much money as possible. The first thing to consider for other trades is when to exit. Although exiting is not necessarily a loss, I am still willing to call these trades that have not been proven correct as stop losses when exiting.

Many traders want to find certainty in the market, otherwise they will be insecure. But in fact, nothing is certain in the speculative market. The size of the stop loss depends on your expectation of the profit margin, and any step in the trade cannot be completely separated and discussed. In my opinion, the expectation of profit margin should be at least 3 times that of the stop loss. If there is no profit expectation, you should give up the trade.

To evaluate any part of the market, the prerequisite are that you have already participated, so the phenomenon fed back by your position can tell you everything you want to know, other than that, the analysis of technical charts only tells you the facts that have happened, and the reference value for the future is very limited. Thinking about it, but not executing it, the subsequent trend is often better than one's expectations, which is overestimating the role of opening a position. Knowing that opening a position can even be random, you should be fearless of opening a position in line with your own thinking.

What is the essence of trading? After the establishment of financial marekt, the essence of trading is actually exchanging risk. All traders enter this market by taking on other people's risks in order to make a profit. In the process of taking risks, losses are actually inevitable. That is to say, anyone who makes a trade does not have to feel guilty about losing money. It is very reasonable to lose money when you make a trade. Even if you have no losses, you have some transaction costs, because this market needs to operate, and it has a market operating cost. So how much is this operating cost? We say that the market cost accounts for 30% of the total market funds, and some say 40%, but in general, it is relatively large, that is to say, you bring 1 million funds into the market trading, if there is only 700,000 left in the end, in fact, you don't have to feel uncomfortable, you actually guarantee a market average.

So this profit is actually a change in the outcome, and it's very, very difficult. Why do I emphasize again and again that this is very difficult? It means that your judgment of a thing, the expected risk is closely related to your outcome. If you expect the risk to be lower, the higher the probability of you actually taking the risk. The higher the risk you expect, the lower the probability of actually taking the risk.

Let's think about it: We often see car accidents on good roads, but I have been to Yunguichuan, and we rarely see car accidents on such difficult roads, such poor road conditions and mountainous areas. The reason for this is that people's awareness of risk is different. So as a market risk-taker, we actually have different types. It is very important to recognize these types of risk-taking and reposition ourselves.

According to differences in attitude towards risk, investors can be divided into three categories:

First, active risk-takers:

1. Ability to classify different risks in the market.

2. Be willing to take the initiative to take on some of these risks.

3. Think of ROI as compensation for actively taking risks.

4. Believing in "what you lose is what you gain", you usually have a clearer view of your obligations to market behavior.

Second, passive risk-takers:

1. They usually do not have the ability to classify the risks that exist in the market, but they do have the ability to quantify the risks they are prepared to take.

2. Unwilling to take the initiative to take risks.

3. View risk as the price that must be paid in pursuit of return.

4. They believe in "what you gain, you lose," and are generally unconcerned about their obligations to market behavior.

III. Blind risk takers:

1. Neither understand the categories of risk nor have the ability to quantitatively analyze them.

2. Focus only on chasing ROI and completely break the relationship between risk and return.

3. View risk as an afterthought, external, and imposed market factor.

4. They are obsessed with "only gain but not lose", and market behavior usually reflects a strong desire to "get something for nothing".

Write a transaction log to make transactions more like business

Any trading method may seem simple on the surface, but in fact it is not. It contains many unique attributes of the trader, his knowledge structure, his habits, his personality, and many of the things he experiences in trading. These are all part of trading. So even if you get a very profitable method, someone does make a lot of money using this method, but you may lose money using this method, because you don't have a lot of things that others think are common sense or habits, and everyone's experience and cognition are completely different.

Therefore, the work of building a trading system can only rely on yourself, relying on this teacher who is stable and profitable in the market, and asking for advice and improving yourself humbly. People are the core of trading, and the process of establishing a trading system is not so much the establishment of trading rules and trading tools, but also the process of training traders themselves into a trading system. Whether it is rules or indicators, they are just tools used by people who are the core of trading. Learn to summarize the gains and losses of trading every day, and summarize according to the trading details after closing, "Why did the failed order fail, how to deal with it to pay the minimum price, why did the successful order succeed, and how to deal with it to maximize the benefits" and so on.

Learn to write a trading diary, write down these summaries, and be sure to write them down. Don't forget about it. If you have nothing to do in the future, you can often read your summaries. Part of your success can be copied. You can't make mistakes again and again. Stick to it for half a year, and you will know. This is a process of self-professional training. Many friends' self-learning process is chaotic, and their profits or losses are random. It has nothing to do with their rules, and they have not learned anything from their profits or losses. For a special profession like trading, to become a qualified trader, you must have professional and strict training, develop good trading habits, and cultivate first-class execution. Many people actually work very hard, but as far as I can see, most of them are not making the most of their efforts, so the same mistakes are always being made, and there is a lack of rigorous, professional, and brutal self-training process.

The reason why trading in the market is difficult is that there are too many random uncertainties, anything can be wrong or right, but many friends learn the process itself without a rigorous training plan, and the entire exploration process has become random. What is random in random? Chaos! So many friends after a few years of doing it, except for physical and mental exhaustion, other feelings are not much different from when they first entered the market, because you did not make good use of those failures and successful experiences in the process, and what happened did not imprint you.

Clarify the variety of your operation, clarify the market level you are pursuing, and clarify the profit margin you want to capture. Don't expect to take all, set goals and bottom lines. The entire content of your trading is to place your position between the target and the bottom line.

Take responsibility for your actions!

To be a successful trader, you must take full responsibility for your decisions and actions. There are many risks that can happen to traders at any time. Professionals have a steely exit plan, regardless of profit or loss. Write down as many trading notes as possible for each trade. Good trading records demonstrate good self-awareness and discipline.

Bad or no content trading records are often impulsive trades. If a trader has a good trading record, that trader is a good trader. A losing trader doesn't accept the fact that his funds are shrinking, he continues to trade without analyzing what went wrong? Keep buying and selling every day, a series of small losses turn into big losses, breaking his bottom line, and most newbies collapse and quit.

A speculator's life is measured in months, not years. A trader's trading process is a journey of self-discovery. The longer you trade, the more you will feel your psychological flaws - anxiety, greed, fear, anger, laziness. Self-discovery is not the end, making money is the only purpose of a trader. Traders must take full responsibility for every trade they make. No matter what profession you do, there will be rules of the industry or pressure from your superiors to ensure that you abide by discipline. You are a driver and must obey traffic rules; you are a teacher. You must strengthen your studies and attend classes on time... Speculation requires more discipline, but no one uses pressure to make you self-discipline. Everything depends on yourself. As long as you have money in your account, you can always make self-destructive trades. No one is stopping you. Think about what you are doing. In fact, other participants in the market want you to be undisciplined and impulsive, so that they can easily earn your money.

To be a disciplined trader must establish his own trading record system. A good trader makes an excellent trading record. It is not only for his account, but for learning and discipline. If there is no good trading record, how do you calculate your grades? How to score your progress? How to learn from mistakes? If you do not learn from mistakes, mistakes will inevitably be repeated. Whenever you decide to improve your trading level, making records will help you succeed. The joy comes from the realization of self potential and recognizing that mistakes are an inevitable process, even a part of life.

The essence and core of trading is in "people". Sometimes when one's skills and trading habits are insufficient, you have to bow your head and ask others for advice. Controlling risks is always the first priority. Learn from each other's strengths and weaknesses, and improve the trading system. It becomes an instinctive reaction to face various uncertainties in the market and improve one's comprehensive literacy. Make investments at the margin of safety and get a sublimation of life, including your family, children trading, physical health, parents' pension, etc. I think this is perfect.