Order from profit to loss, position squaring or continue to hold? Talk about swing trading and trend trading

A customer asked such a question: "Teacher, I want to ask a question that has always puzzled me. I have performed the stop loss better by myself now, but the stop win position squaring has not been well grasped. For example, the previous day's order was profitable yesterday, and today's rebound is close to the opening cost of the day before yesterday. At this time, should my position squaring be close to the opening cost of the position? Or continue to hold the position? If I continue to hold the position, I may face the loss of the original winning order, which will make the mentality worse. How can the teacher deal with such similar problems?"

The situation in this question is one that many foreign exchange traders encounter frequently. To answer this question, we need to start withTrend Tradingandswing tradingTo explain the differences.

We know that successfulTrend TradingIts advantages include having more time to decide when to enter and exit, not having to watch the computer all day, and the satisfaction of catching the main market; its disadvantage is that the stop loss point is set far from the current price, and once triggered, the loss is relatively large, and at the same time, it has to endure the pain of a sharp retracement of the main trend, and secondly, it has to endure a long period of market stagnation or consolidation.

whileswing tradingThe advantage is that there are more opportunities for operation, because the stop loss is set closer to the current price, so the absolute loss is relatively small, and the quick return can also bring emotional satisfaction to the trader; the disadvantage is that it is possible to miss the main market, which must be monitored every day. At the same time, the transaction cost is higher, and more importantly, the technical judgment requirements are more accurate.

The customer's questions are relevant toswing tradingperson andTrend TradingEveryone will encounter it. You placed an order today and started to win the next day, indicating that you did the right thing, but the third day was wrong. The price had a large retracement. At this time, every trader has to be tested, whether it is you or me. It is the same. Don't think that experts don't need to go through such a test. That is a wrong understanding. Everyone is also under this psychological pressure. However, the difference between beginners and experts is only that -Can you control your emotions and be fully prepared for the current events at the outset of trading?We can open the historical chart to see if those unilateral non-retracement trends happen often? It should not. Therefore, we will encounter such situations at every turn.

For example, my trading system isTrend TradingSystem, this also means that I have to give up many bands of profits. I already thought of a big price retracement when I placed the order, so I will only leave the market before the price hits my opening cost zone, and I will not regret the loss of profits. Because my original thought was that this could be a trend market, and I want to make the most of this market.

There are two sides to everything in the world, and no one knows the truth until the last moment. If you areTrend TradingIf the system enters the market, you must use the signals of the trend system to determine your exit. For example, short, we cannot judge that the trend will turn short until the price reaches a new low, so in this period, shortTrend TradingThe person is just trying to catch a short trend, but it may not be a short trend, just continue to rise after the shock, who knows? Since you want to catch the trend, then you have decided to give up the profit of this section; if you want to catch the profit of this section before the trend reversal, you may miss a big market. Some people may say how can you miss it? Can't you just position squaring first and wait for the rebound to end before going in? Of course, if this is the case, what else can you say? God bless you so much! But what if you jump into the gap and open low and go all the way down tomorrow? Chase or not chase? What if you chase and rebound sharply the next day? What if you don't chase and the price continues to decline?

In fact, while answering this question, I have told you all the possibilities. The truth is - the market is unpredictable. We can only formulate a trading strategy that is operable relative to the market trend, and according to this strategy, we can decide what you should do. You are doing the trend, and your strategy is to give up the profits before the trend completely comes out. Of course, try not to lose money, so you can leave the market as long as you keep the handling fee before the price reaches your cost zone. If you are doing the band, you will be bagged when the price starts to run in the opposite direction. Don't regret it, don't be sad, and find the swing time again. Forex trading experience skills

Whether you are doing a trend or a band, you must make a decision before placing an order, because only at this time will you be the most rational and sober.

I personally think that small capital accounts do not make much sense, the reason is that the absolute value of funds is too small. A 10 million account because of its large absolute value of funds, so 30% return is very impressive, but a 100,000 account even if the 100% return is negligible. So big funds do trend, small funds do wave This has become the general law of the futures speculative market. Unless you have a super strong mentality, willing to treat this as a career to do, ready to use 20 years, 30 years to achieve compound interest returns, otherwise small capital accounts are hard to bearTrend TradingPersist with the shortcomings.

But why do many small capital accounts claim to be doing bands but still lose money in the end? That's because they don't know what they're doing at all. Obviously doing bands against the trend, they made money but refused to leave, insatiable, eager to make enough money in one go, seven drags and eight drags to get floating wins, but they are not reconciled, they simply become trend orders, but the trend is reversed, and eventually you lose money and leave the market; obviously doing trends, a little bit of profit is afraid of losing, a withdrawal is scared to leave the market, and when the trend remains the same, they are not reconciled, and rush into the market again, washed up and washed up, the loss in capital is huge, and they simply don't do it. At this time, the big market has started, and you can only stand outside the market and regret vomiting blood.

The small capital account to do the band is to adhere to the principle of adding up more, adjust their mentality, miss the market without regret, not sad, calm down and start again, and can also make big profits. The key is mentality! To do the band, you must have the mentality of doing the band. The band bears less pressure, and the stop loss setting is also narrow. Of course, the profit is relatively small; the pressure of the trend to retract sharply is large, and the stop loss setting is wide, of course, the profit is large. Small capital accounts are not uncomfortable to miss the market, do not chase up and kill down, and wholeheartedly try to seize the profit of each band according to their own strategy. The profit is already very considerable! Large capital accounts do not follow retail investors around, give up the band profit, and steadily hold every wave of big market, and the profit is also extremely considerable.

What is the most important thing to make money in trading? Technique? Mentality? Money management? Stop loss? Entry? Exit?... Of course these are all important. But the most important thing is to understand as a trader: what do you want? Determine what you want, you can formulate a strategy according to the results you want, and then unswervingly follow the strategy to execute, and success is very close to you.