After 8 years of trading career, reflections on money management

{}Posted in2023/2/24 15:34:26 | 3Browse

ForexrebateforExnessn recent years, I have been forexrebates a trading position in the face of many investors were asked numerous questions, but also a thous forexcashrebate of them, such as: "How do I do, what do I learn?" ; "How cashback forex I make a profit?" ; "What method do you use? Can you lead me to do it?" Why cant I choose the right species or direction?"; "Can you predict the market?" What news do you have? Can you also tell me next time?" ...... in fact, every stage of investors have asked similar to the above questions, and these questions and th Forex rebate for Exness article wants to express the content, we also see in the N many related to trading text, video, news, courses But, human beings are inherently a "trial and error creatures However, human beings are a kind of "trial and error creature", often curiosity-driven behavior, and will only reflect on it when they have suffered, no matter how much the sharer emphasizes, but the probability of things repeating themselves again and again about the above questions, we can find that basically want to find a way to get the "gold mountain", rather than become a search and find The purpose of the "gold mountain" is not right, the concept is not right, the natural perspective is biased, failure is certain to quote the "Ghost of Wall Street", "the ghost" of a sentence it: "No trader is not a loss of Half of the cashbackforexexness before knowing how to do in the hands of those who are experts! Knowing this alone is worth a thousand dollars," so please every investor who is lost in the trade to remember one thing! Self-trying and learning, is the only way to find Jinshan, and the past experience has forged the current self without regret, think about it, if not frustrated in the road of trading, you will resonate with what I said above? And this resonance, it has been better than tens of thousands of traders this article, the author also does not want to write a very comprehensive, I do not like to engage in academic simply want to put the idea little by little to penetrate your trading plan so todays article, I want to say is the most important aspect of the beginning of all trading need to do things about what is the most important point in the trading process? Staying alive! Live!!! Live!!! The important thing to say three times here "alive" means do not lose all, "lose all" does not only mean money, but also confidence, and your time, energy, do not lose your life only live longer, to meet those simple clear trend outbreak; only Only live, so that you can have a long trading career, to be eligible to mention "I have experience, I have their own trading ideas, I can share my feelings, I can use these to earn money"; only live, so that life is stable, your trading status will be good so the first need for all investors to think clearly is, you want to be a star If you want to be a star in the investment market, then I have some suggestions below, which may be of great help to you. Im going to talk about how to live for a long time and make money in the process of "living". Before I say that, please allow me to say two real things that I learned when I was actually teaching: an investor A, less than 30 years old, trading time of not more than 1 year, at the end of 2014, in the stock index futures continuous rise, turning losses into profits, earned the first bucket of money in life The first bucket of gold, 650,000 initial principal, through the predictions of a few "teachers", coupled with my very diligent, in early 2015, the account capital has reached more than 2.4 million accompanied by family, friends, colleagues boast, A feel that they are already a winner in life, buy a car, also did not hesitate to meet the mother-in-laws The wife, and then did the matching, fist, ready to follow the previous successful model and then do a vote at the end of 2015 appeared in front of me, has been divorced for 1 month, with a bus card, lax gaze, completely without the vitality of his age should have, but he still vowed to hope that from where he fell on the rise again According to him, his wife raised divorce before begging him to leave the market The companys investors B, more than 50 years old, a company engineer, family stable futures and stock trading full 15 years, 15 years total investment of more than 600,000, respectively, burst 4 times, the average deposit of about 150,000 each time, the average of every 3.5 years burst once, the current account funds, 85,000 B mentality is very good (or can be interpreted as numb to losses have been), they admit that every time they want to do as a lottery ticket, take a loss, feel hopeless to close the position to make money, enough for a months expenses to leave the field although the number of times to make more money, but a loss can swallow many times the profits and even once was a futures company phone call to fill positions before they knew they were close to blowing up and the recent because to buy a house for their son to prepare to make money from the futures market, but the more you want to make money, the more frequent the order and the more positions But the more you want to make money, the more often you place orders and positions, but also the faster you lose money Investor A, to meet the money and happiness, but not "live" for a long time; Investor B, to meet the "live" for a long time, but did not bring money and happiness from these two more characteristic investors, in fact, whether As first up and then In other words, they are with their own feelings to invest, rather than with the market trend and operation and if the money with the feeling of investment, it is a typical gambler behavior! Just like two people have asked me the same question: how to avoid risk? My answer is: How can risk be avoided? Cigarette box with "smoking is harmful to health", the car and plane seat belts, traffic lights and crosswalks on the road, pistols with safety pins, their role is not to avoid risk! Because it is impossible to avoid, what comes will eventually come, and why do not you think about how to control the risk? Yes, they both make money, no matter what method they use, no matter how much money they make, how many times they make it, but they let their losses go, which ultimately leads to the funds "unprotected" by the market volatility eaten Please allow me to emphasize once again the risk! Its for control! There is no size of risk, only whether it is controllable! The most important difference between a gambler and a trader is that a gambler uses his feelings and luck to get money without a plan, or often changes his mind, all based on personal preferences trader, with a plan and discipline! And the fundamental purpose of the development of plans and implementation of discipline, is to control risk, so that the funds safe! What is trading? You can literally go to the first look at the traffic, traffic, alternate, exchange easy more in-depth, you can look at this paragraph from the Baidu encyclopedia: Qing - Mao Qi Ling "Zhongs easy" that easy and five meanings refers to the mutual traffic and convection of yin and Yang, the interaction of yin and Yang, Yang has "first with the, after taking the" virtue, Yin has "first taken the". Yin has the virtue of "taking first, then with". The process of "taking" and "with", i.e., the traffic of opposites, is that "Yang", the root of all things in the universe, first emits its yin and yang to the world. The process is that "yang", which is the root of everything in the universe, first emits its element to "yin", and "yin" obtains from "yang" the required "yang The process is that "yang", which is the root of everything in the universe, first emits the element "yang" to "yin", and "yin" gets the required element "yang" from "yang", and "yin" mates and communicates with its own element "yin", thus giving birth to and reproducing everything, and then returns to "yang", and so on and so forth, never stopping. is trading itself? Want to make stable long-term profits? Then do each loss of money quantitative, loss after leaving the field to watch, there are profits in accordance with the conditions of the strategy to hold good, try to enlarge it, is not good? This is also investment science, the fundamental of everything: capital management policy you must have a scientific and wise capital management methods, usually most investors will ask to use a few percent of the funds to enter the market to do margin? Take out how much money to take the risk? Such a question is not comprehensive, but must be combined with their own account situation and their own expected situation below to say a most simple method: First: figure out how much money they have, how much they are willing to pay: a simple example: winter, cold, want to go to the mall to buy a down jacket, how to do? Isnt it first necessary to see how much money you have in your wallet and how much money you can spend in your card? For example, the final result is that you can spend 3,000 yuan, and then deduct the travel expenses, food and beverage expenses, other unexpected expenses after the budget, a down jacket you hope is within 2,500 yuan, you will buy 3,001 yuan of down jacket? Will the mall let you go? Will you buy a down jacket for 2600 RMB? Then walk home hungry. Every decision we make has to be paid for, and this is true for life, and even more so for trading. Before any trading action begins, plan how much free money you want to put into your futures account and then be sure to specify how much risk you can take! Then be sure to calculate how much you plan to lose your money in the worst case scenario, in how many times, or how much time on average. Immediately stop trading, exit the market and then hope to use 10 transactions to lose all the 60,000 yuan, then the account at the same time the position limit must be within 10, each loss of 6,000 yuan and the 6,000 yuan is your existing account and trading strategy of a single maximum loss value! Beyond this value, it means that your trading is out of control! With the number of quantitative methods finished, and then talk about the use of time, the same account can withstand a loss of 60,000 yuan, hope to do medium swing trading, set trading cycle is 5 trading days, that the average daily loss of 12,000 yuan or less set a good trading strategy, according to the stop-loss range and the average proportion of the entry, so that the entry of all the single loss, but also to control the loss of 12,000 yuan per cycle within the day Short-term trading strategy is easier to calculate, in accordance with their own trading system plan the number of times each day into the field and trading contracts, the same set a good daily loss can afford, for example, can afford a loss of 3,000 yuan a day, 20 trading days loss of 60,000 yuan; a day concern 3 varieties of contracts, each contract up to 3 times, that is 3,000 ÷ (3X3) ≈ 333 yuan that good each short term single Set a stop loss on the 333 yuan or less is not immediately understand why I have to say to lose it all? Very simple, we must quantify their accounts, as if each seat in a car will have an insurance belt, a companys every money to record the same we must first make rules for their accounts, no rules can not be squared, and this "rule" is the beginning of everything! Second, let your money management strategy to arrange what you can do, how to do in fact, the simplest way to say investment, is to figure out what you want? What are you afraid of? Operation is nothing more than entering and leaving the field! Integrate the two together is: in your expectations within the hold, come to expectations outside the exit that is to say, to meet the above capital strategy before, to first figure out, the purpose of the transaction and leave the field conditions, so be sure to use the stop loss that is to say, you should have known before you enter the field "my maximum risk of this behavior (what I am afraid of) "Or buy down jacket example, I hope the price space of the trading object (down jacket) is 1-2500 this is the conditions for me to buy the position, more than 2500 (I am afraid of), give up, looking for the next opportunity For example, I want to do soybean meal futures, the standard contract is 1 yuan per point of fluctuation, 10 tons per lot, that is, each fluctuation of a point per lot value is 10 yuan for example, the current price of soybean meal is 2400, ready to do more, I hope the price comes to 2500 (what I want, target level), I do not want the price to come to 2380 yuan (what I am afraid of, stop loss level) my current account capital is 300,000 yuan, according to my capital management policy, I can lose 6000 yuan per transaction I must not be clear now the results of this transaction into the field, but I am clear that I If I enter now, my stop loss is 20 points, the maximum risk per lot is $200, according to my money management policy, I can do 30 lots because there is a possibility of overnight jump, so I better leave some price shock costs, just in case, so the final entry may be about 28 lots if the above trading strategy, the final result If the above trading strategy, the final result is a loss of 5600 yuan, or come to the target level of 2500 profit of 100 points, 28 lots, the profit is 28000 yuan or account profit in more than 10000 can move up the stop loss or early position reduction to protect profits will not find that every time before entering the plan to do, understand clearly the "cost" after the heart is very You will feel more secure? Its better than asking yourself or others what to do after entering the market, right? Imagine, at the beginning we set the number of transactions is 10, if all according to this method of trading, you lose money to your expected risk, there are only two possibilities, the market systemic collapse, or all 10 transactions stop loss so from the safety point of view, we recommend that you leave a certain risk impact cost each time, that is, each time you enter the market, leaving a few hundred dollars of volume, do not calculate the number of lots can do A few hands to do a few hands second, each time the position at the same time, must be less than the number of plans with these two points, I am afraid that you can lose the expected risk, only your trading method and trading method, is available through the accumulated experience and learning unilateral improvement! Account funds will not! People who enter this market, I believe are not stupid, will not design a plan where the expected risk is greater than the expected profit So, when the money management program is reasonably designed, you will find a thing: money management is used properly, even if only 40% success rate, you can also reap the benefits of not bad; money management is very poor, even if there is a 70% success rate, you will end up losing Yes, from the above example, you not only From the above example, you can not only protect your account losses within their own expectations, but also if the trading strategy is formulated reasonably, you can also keep your mind stable and healthy operation of this is the most basic point that can determine whether you will become a winner! I have never seen any "trader" worrying about what he should do! The root of everything lies in the fact that he is in control of his account while the gambler, always guessing, is thinking about how to predict the market! And again, the importance of a more practical money management: did you feel terrible? So forget about the word "return" loss, is a loss, it is already someone elses money financial markets are inherently liquid, no one can avoid the withdrawal of funds! All you can do is just to make the retraction quantitative! The reason why winners are winners is because they will make the money profit and loss in degrees! That way you dont damage your account itself and make it harder for yourself! Regardless of how much money is left, please start making money management programs from now on its not too late because as the money becomes profitable, in the money management policy, the number of positions that can be opened will increase remember! Losses are diminishing funds, while profits, are compounded funds If you did not plan how to use the funds at the beginning, then control the risk now! The best time to plant a tree is ten years ago, the second best time is now you need to think from the perspective of a winner, trading is fundamentally the embodiment of behavior, and the root of the behavior in the mind, so want to change behavior, first to change the mind, behavior will naturally change "God of stocks" Warren Buffett once said: the laws of investment First, try to avoid risk, preserve the principal; second, try to avoid risk, preserve the principal; third, firmly bear in mind the first, the second to protect the security of the original input funds is the fundamental investment, in the case of the original capital security to obtain the inevitable investment profits, is the science, sound investment strategy The following are some recommended books on money management program for your reference: investment https:/ / books.douban.com /book.douban.com/subject/25823511/investors-and-markets https://book.douban.com/subject/5419138/-http://www.douban.com/ subject/1089991/Futures Traders Money Management Strategies http://www.douban.com/subject/2253867/http://www.douban.com/subject/4188908/http://www. douban.com/subject/2568149/ I hope everyone will examine their own specific situation and develop a money management plan that suits them At the same time, during the reading process, it is important to understand the background related to the content described by the author, copying the plan in the book, generally speaking, does not apply to everyone So, what we have to figure out is: combine the methods in the book or article At the end of this article, please put your hand to your heart, close your eyes and ask yourself, can you afford to lose every penny you have? If you want to be a good trader, ask yourself, if you are a capitalist looking for an investment advisor, do you feel comfortable giving yourself a million dollars? If you cant give an affirmative answer, please tailor a money management program for your account now! This others can not help you, because only you know your own situation best Author: Yang Chao analyst

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