Speculative trading, the most important state of mind, once the loss of confidence, a trader can not adhere to the implementation of their own trading strategies, but is at a loss or rely on the views of others, and ultimately not only won the ignorance, lost inexplicable, but also their own level and their own strategies The use experience and confidence have not increased at all.
Although it is said that the mentality is the most important, it is difficult to improve the mentality without finding the root cause. Here I will analyze some personal experiences and see how the mentality changes step by step.
1. When you first started trading, the worry is that this purchase will fall.
[Countermeasure] Set the stop loss, and withdraw every time the transaction loss reaches 5% of the total funds, and resolutely execute it.
2, with a stop loss, do not have to worry about falling, can be worried is not profitable, and continuous stop loss, stop loss seven or eight times, the old has also gone a big chunk, I saw the stop loss is not profitable This is the most worrying.
[Countermeasure] Increase the success rate of the operation and find the critical turning point of the fluctuation, that is, some of the entry points that may fluctuate for the most time according to the current trend. (This is the core of all technical analysis, each person's method is different, can find the critical turning point in the ten-seven and seven-seven, it has been relatively successful)
3, improve the success rate, do not worry about continuous stop loss, and began to worry about earning less when earning, especially miss the big market. The handling fee plus the difference between the two ends of the stop loss, the cost of the stop loss is higher than the theoretical calculation, so if the profit is not enough to make up for the loss, or the profit is small, it is not certain whether it will be profitable for a long time.
[Countermeasures] Try to increase profits when you make a profit. If you can catch big fluctuations, you can't hurt a few small stops.
4, learn to wait, began to successfully seize some of the big fluctuations, not afraid to earn less when earning, but at the same time there have been more transactions caused by waiting for the win-win. These loss-making transactions not only affect the mood, but also waste time and energy, and have a significant negative effect on the overall transaction performance.xx
[Countermeasure] Use the maxim that "never let profit turn into loss" and close the position when the profit position falls back to the price.
5, well, the loss of trading is less, but because of the big market that missed the game, there are more big trades. It seems that it is better to use the stop loss to go to the big wave of those missed big fluctuations.With a lot more, the system becomes unreliable and there is a trade-off problem)
6. Most of the specific problems have been solved. The next question is how much and how long can this method be used?
[Countermeasure] The system is implemented on the historical map of the past ten years to simulate the simulation to verify and modify, and through the system to do more than 50 transactions in the future, to achieve a stable execution system without market interference.
7. The system can be executed stably. The total transaction results are statistically positive. At this time, they are not worried about the outcome of a single transaction, but have the confidence to win on the whole. However, there are still new problems. The worry is that once the market changes in some nature (such as cyclical changes, the main operating style changes), the stock changes and the system suddenly fails.
[Countermeasures] There is no countermeasure at this point. The stock market is a place that will change forever. There is no way to win and succeed. In particular, technical analysis is a follow-up operation. The only thing that can be done is to maintain awe of the market. Check the operation of the system at any time. When the results of multiple transactions are not normal, it is necessary to re-establish a new strategy after confirming that the stock has a new special change.
The above mentioned are only the psychological obstacles caused by the technical problems faced in establishing a systematic trading method. In actual operation, the closer to the stock market, the more influences are affected by various objective factors, such as the market atmosphere and the main force. The shock of the news, the sawing of the market, may make a trader unable to bear the psychological pressure and give up using the researched system, so if you can maintain a kind of mentality, pay more attention to the system and pay less attention to the market, Conducive to the stability of the mindset.