1. At the beginning of trading, the fear was that this purchase would fall.
Action: Set a stop loss, every time the loss reaches 5% of the total capital to withdraw, firm execution.
2, with the stop loss, don’t worry about falling, can worry about is not profit, and continuous stop loss, stop loss seven or eight times, the old also went to a large chunk, I saw the stop loss not to see profit is the most worried about at this time.
Action: Increase the success rate of operations by looking for critical turning points of fluctuations, which are the entry points where fluctuations are most likely to follow the current trend for a while.
(This is at the heart of all technical analysis, and everyone uses different methods. Finding the critical steering point in six or seven rounds out of ten is considered a success.)
3, improve the success rate, do not worry about continuous stop loss, began to worry about earning less, especially miss the big market.
The cost of stopping a 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 sure whether the long-term profit.
Action: Try to expand your profits when you make them. If you can catch big moves, small stops won‘t hurt you much.
4, learn to wait, began to successfully catch some big fluctuations, not afraid to earn less, but at the same time, there have been more by waiting and turn to lose trading.
These loss-making trades not only affect the mood, but also waste time and energy. More investment skills and daily single strategy can be seen in the public medium to solve the thousand worries, and also have a significant negative effect on the overall trading results.
Action: Use the motto “Never let a profit turn to a loss” and close a profitable position when it falls back near the entry price.
5. Well, there are fewer trades lost, but there are also more big moves missed because of the tie. By comparison, it seems better to put those big moves missed into a stop loss.
Action: Ditch the adage “never turn a profit into a loss” and use stops to make big moves.
Further RESEARCH TO IMPROVE THE PLACEMENT OF STOP LOSSES, and to find out if YOU CAN WAIT FOR A BREAK FROM a PROFIT (NOTE: MORE conditions, the system becomes unreliable, there is a TRADE-OFF).
6, most of the specific problems solved, the next worry is their own method can work in the end how much, how long?
Countermeasures: Implement the system in the past ten years on the historical chart to verify and modify the simulation experiment, through the future use of the system to do more than 50 times of trading, to achieve the level of stable execution of the system without market interference.
7. The system can be implemented stably, and the total transaction results are statistically positive. At this time, we do not worry about the results of a single transaction, but have the confidence to win on the whole.
But there is still a new problem, the fear is that the market once a certain nature changes (such as a change in the cycle, the main operating style changes).
Cause a change in product quality and cause the system to fail suddenly.
Countermeasures:
The investment market is a place of perpetual change, and there is no way to win for a long time. In particular, technical analysis is a kind of operation of following the trend. The only thing you can do is to keep awe of the market and check the operation of the system at any time.
Make sure the product you invest in has a new and special change and must re-establish a new strategy.
The dollar neared the 98 mark, the euro hit a near 22-month low, focus on the non-farm report.
Please pay attention to the specific operation, the market is changing rapidly, investment needs to be cautious, the operation strategy is for reference only.
