To all those struggling in China’s stock market: Trading is lonely!
Trading is lonely, and your trading system is the outward form of your understanding of trading.You build it step by step, with all your ideas, all your ideas, and your personality.After the theory of the trading system is formed, test your system in the actual practice process, constantly improve your theory, improve some details, find loopholes, plug every possible risk exposure you can think of.In the process, your understanding of trading will grow, and so will your understanding of human nature.You will know that this is a path that no one else can participate in because they don’t know your experience, don’t understand your mindset, don’t understand your understanding of risk.The limits of human cognition will be fully reflected in this process.In the end, you will practice alone, practicing your own way of trading, practicing your own mind.You become accustomed to the existence of some of the noise around you, you begin to appreciate the trading methods of others, your understanding of the world, your understanding of the trading philosophy, becomes deeper and deeper.As a result, master traders will write about philosophy in their books, and interestingly enough, many people who have read the books will lash out at the authors for saying nonsense and failing to say the main thing, when, on the contrary, they have already said it all.In short, trading is not to see the results of the moment, as long as you do not leave the market, ultimately to see who can go to the end.And can go to the end, is destined to be a lonely trader.Greed and fear are the worst traits of every trader.Without experiencing significant pain, frustration, and failure, the trader will not be able to fully understand the terrible nature of these bad habits and will not think about them seriously.After experiencing major setbacks and failures and experiencing the pain of huge losses, traders will seriously sum up and think.Almost all traders have this process.For a novice, it is better to spend more time learning about trading than to wait until he or she suffers a great deal of pain to summarize and think about it.It is said that people are born with two fears, one is the fear of falling.When I was a child often do a kind of dream, perhaps the person had done when the child, fall down from upstairs carelessly namely, often be such, of full head cold sweat wake with a start, afterwards adult say is because grow a head the cause, grow a head why want to grow so?Today don’t know, but this dream may be references is changed from the monkey, the monkey lives in the big tree, and under the tree is the domain of the beast, the monkey, of course, the most afraid of accidentally fell down, so practice special over time in the tree, but falling dream, forever in the mind, even if evolution adult, still holds the fear.There is a challenging sport called cliff jump, a man climbing to the extremely, and then leap, at the moment close to the ground to open the parachute, it’s such a life and death game, but someone must try, have a kind of people is like this, he wants to challenge the life, the leap to fly his feeling, have the courage to feeling the need to get out in the face of death,And that courage is hidden in the human secret in the face of the moment of death of the strong desire for life and persistence, that desire and persistence is the meaning of life, he just want to understand more than usual really deep.Another kind of fear is loneliness, and loneliness can be a very serious fear, and one is afraid of it, especially when one feels various kinds of emptiness.Because of vanity and lonely, who can be explained by vanity, the nature of vanity, is living not bring, popular pockets, as the two head such as only using the middle to the vanity, so that their symbolic meaning of eternity is the common pursuit of life, big to khalid, sets, contributions, small to live, all sorts of greatly small memorial affairs,It can be said that the void allows people to give life, to see, to hear, to do, to give purpose and meaning of one kind or another.No matter rich or poor, people in the escape from the object like desire at the same time, but also in the instinct to break away from the emptiness of the mind, the establishment of power and faith and other symbolic ideas.However, it is still possible to escape from the desire part of the object that does not belong to the heart, and it is still the heart that has the ultimate nature.Market opportunity judgment method, investors can accurately judge the market and the opportunity of the stock, and according to their own grasp of the method to choose the opportunity, so as to make their own buying and selling basis, clearly, and accurately grasp the opportunity of buying and selling!1.(1) The opportunity of bottom making process: after the stock price falls, the technical factors are at a low level, and there is the process of bottoming after stopping the fall.Belongs to the short – term opportunity, the rise and fall in the operation space is smaller, longer time, mainly with repeated shocks.Risk is small, the method of risk control is to break stop loss.Applicable to arbitrage speculators, value investors in line to be able to withstand shocks and even lure short risk.(2) The opportunity of rising process: the stock price breaks through the downtrend and bottom form, forming the process of rising trend to uptrend destruction.Belongs to the midline opportunity, the operation of the biggest room for rise, a long time, mainly to rise small fall.There is no risk in the medium term, there is adjustment risk in the short term, and risk control is covering positions.For trend speculation and trend investors.(3) The opportunity of head process: it refers to the shock head process after the stock price rises sharply and the technical factors are at a high level.Belongs to the short-term opportunity, the rise and fall in the operation of the space is small, the time is longer, mainly with repeated shocks, more complex.Risk is bigger, risk control is break stop loss.Scope of application: arbitrage speculators, trend operators in this process to reduce the main position.(4) Opportunity of decline and rebound process: the decline and rebound process refers to the short-term rise in the stock price on the way down due to the short-term oversold after the stock price broke down.Belongs to the short – term opportunity, the rise space is relatively small, the shortest time.Risk is the greatest, risk control is break stop loss.Scope of application: arbitrage speculators, trend operators do not buy at will, to the short position wait-and-see.2.Different nature of the market opportunity classification of different nature of the market, the space and time of the rise and the way of operation are different, so the nature of the opportunity and the use of the method is also different.(1) big bull market opportunity: refers to the formation of a cycle on the weekly line, from the weekly line can see the bottom, up, halfway finishing, head, down process, it contains more than two intermediate market.Domestic market this opportunity is not every year.It is a long-term opportunity with the largest upside space and the longest running time, about more than a year.Operation mode is: after the long-term plunge, the bottom process is complex, with the composite form of the bottom.Rise in a variety of ways, there are more than two stages of finishing or morphological finishing halfway, head to compound shape head, and most of the head have induced more process.Risk, do bottom after long term without risk;There is a line finishing risk, risk control is to fill positions.Suitable for: trend speculators, trend investors and value investors.(2) Intermediate market opportunities: intermediate market refers to the formation of a cycle in the daily line, it forms a bottom, rise, halfway finishing, head, down process in the daily line, including more than two secondary market.From the daily line, can obviously find 5 waves up and 3 waves down, in our market every year at least a midline opportunity.Chance belongs to the middle line chance.In terms of space, the room for rise is large, with a chance of 30% ~ 50% rise.In terms of time, the running time is relatively long, about 3 months or more.In the way, after the middle of the fall to do the bottom is simple, given priority to by a single bottom shape, the rise of the process of running in a variety of ways, rise and small fall, there are two forms of finishing halfway, do the head to a single form of the head, the head also has induced process.On the risk, the middle line without risk, short – term collation risk.Risk control is covering positions.Suitable for: trend speculators and trend investors.(3) secondary market opportunities: the so-called secondary market, refers to the formation of a cycle in the 60 minutes chart, it forms a bottom in the 60 minutes chart, up, halfway finishing, head, down the process.From 60 minutes, can obviously find 5 waves up and 3 waves down, secondary market contains more than two technical market.Opportunity belongs to the short – term rebound opportunity.On the space, the rise space is small, generally rise in the range of 30% below.In terms of time, the running time is short, generally 1-5 weeks.In terms of mode, it is simple to make a bottom after stage oversold, and the bottom is mainly in a single form. In the rising process, it is mainly in shock rising. There is K line finishing in the middle of the process, and the head is mainly in simple form and K line, which will not effectively break through the substantive pressure level.Risk, short – term K line finishing risk, medium-term risk.Risk control is the factor that determines the trend of the stock market. Just as Andre once said: 90% of the rise and fall of the stock market in the short and medium term are affected by psychological factors, while the fundamentals are the key to the long-term performance of the stock market.The psychology of stock investors determines the short and medium term performance of the stock market, that is, the performance of the stock market depends on whether the stock is in the hands of well-funded and stubborn investors, or hesitant and easily panicked investors.There are investment experts who can read the current state of the economy into the future stock market, interest rates and industry prospects.But in the short term, the current state of the economy has no effect on all three.Note that the stock market rose because buyers, even under economic and psychological pressure, were stronger than sellers.It is the reaction of the investing public to events, not the events themselves, that moves the stock market.In addition to psychology, interest rates are an important factor in determining the medium-term direction of the stock market.Interest rate or liquidity determines whether the capital market is in a state of oversupply or oversupply.Interest rate has a decisive influence on securities credit trading. When interest rate is low, it indicates that more liquidity will enter the stock market.However, the impact of interest rates on the stock market takes place over a period of time, the “medium term direction of the stock market.”Psychology is no longer important for long-term trends.If IBM, Siemens or Mercedes-benz didn’t have solid business fundamentals, their stock prices wouldn’t be as high as they are now.The share prices of these conglomerates have nothing to do with psychology.But who can predict today whether the mood in the stock market the day after tomorrow will be one of worry or hope, and what bias investors will have toward the stock market?(John Maynard Keynes said, “In the long run, we are all going to be dead.”) The prosperity of the industry determines the performance of stocks and their future returns.People who can see what an industry will look like years from now can make a lot of money.Do not want to let profit retreat, and want to let profit run freely, how to do?In real trading, do you often encounter such a trading puzzle: hold a list, have made 10%, do you walk?Let’s go, there’s another 70%, missed the big move, remorse, anger, remorse;Don’t go, most of the time, the market may return, and do a roller coaster, and finally hand a lot of profits and spit back, and even may be inverted money, regret, always want to “if not greedy, early check surplus is good”.- The reason why there are these trading confusion is because you do not know whether the market is basically over, or to continue to move forward, do not know how much action behind, which leads to your wandering and confusion.If you know behind there are about 70% of the market, of course, will not go, firm hold;If you think the market behind is not big, even if go, also can not earn much, of course, can withdraw, also will regret., of course, if you don’t understand the fundamentals, or not interested in the fundamentals, then use technical analysis alone, in the category of technical analysis, we don’t know the market, there may be many behind the front for us is a black hole, you can’t be on the other hand, want to let profits run free, on the other hand, don’t want to make profits retracement.This is A contradiction, unless an option is unilateral rise all the way up, like A bull market in the first half of 2015 A shares, but this kind of unilateral rising prices too little, most of the trends are shock type, or shock, before further, three back, if you want to let profits run free, then must allow market adjustment,To provide an adjustment to the market, at this time it is bound to face the retracement of profits, and even a larger retracement, retracement all;If you don’t want profits to retreat, it means that the slightest sign of trouble, you quickly stop profits, locked in profits, but also faced after the stop profit, the market continues to soar, miss the market.So do we choose to let profits run free?Or allow profits to be withdrawn?It doesn’t depend on our own, depends on our trading system, when the market retreat, did not meet our stop, we will hold a list, let profits run free, where is the option to run, even if where, run far away, we take it very far, earn huge profits, not take the initiative to check, let profits run free on the vast grassland,That’s trend thinking.If the market retracement, trigger, to reach our mobile stop loss, then we leave the market, at this time the profit retracement is larger, to avoid the market turn, to avoid floating surplus to floating loss, but the profit retracement is larger, but in exchange for the profit is free running.We can’t have our cake and eat it too. We can control our losses, but we can gain from god.Trading there is no perfect solution, forever all only lies in the trade-off, such as check, one of the perfect operation for the entire trading career makes no sense, no matter how to select, inevitably will face early to check, and left behind a lot behind the profit, also will have a late check and profit-taking is too much, when facing these problems, to think that these are normal,As long as you follow your own rules, no matter what the result is, this kind of operation is perfect.Through the resumption, will find their own trading opportunities, in fact, and many, so if the step empty, do not have to be too harsh on their own, it is their own operating rules outside the market, does not belong to you.For more exciting content, come to fisherman’s finance