1. If the short-term trader is an artist, the long-term trader must be an engineer. Artists are full of excitement and passion for artistic creation, while engineers making engineering projects are full of hardships and challenges, because the project requires long-term efforts, and unexpected situations will occur in the progress. Long-term trading is more about rationality than passion.
2. There is a misunderstanding in the market. The reason why long-term traders can hold positions for a long time is because they can predict the start point of the trend and end point of the trend, so they can hold the position with confidence!
3. Obey the discipline of long-term positions to endure the pain of ordinary people can not understand, it can be said that long-term profit is a long market torture in exchange for.
4. The most important thing in long-term trading is to maintain objectivity and discipline. In many cases, you should give up your own fresh thoughts and judgments, but you can get an enviable return by ending a successful long-term position. This is also the reason why the long-term is so attractive. Long-term trading has one of the biggest characteristics: losing small and winning big, it does not pay attention to the times of profit and loss, but pays attention to the quality of profit and loss, which is the most essential difference between it and short-term trading!
5. When the market is in a state of large seesawed period, the analysis of fundamentals is often unable to adapt to the trend of price, and the price is more disorderly. The trend analysis has little meaning. At this time, short-term trading and K-line analysis and utilization of arbitrage to avoid risk is very applicable.
6. Short-term trading depends on the sense of the market, do not need too much long-term analysis, they are very sensitive to price fluctuations, their heartbeat is almost synchronized with the market, they barely hold positions overnight, the large trading volume and fast in and out is their trading characteristics; At the same time, a decisive stop loss is even more important. There must be no hesitate and waiting, no matter opening or closing position.
7. For analysts, the market can be analyzed and predicted, because their duty is only to find the future direction of the market, and even if it is wrong, it can be corrected in time. Moreover, the market is indeed predictable in terms of trend, that is, directionality. because the market always has a trend, and the trend has a certain stability, including the time of the trend and the space in which the price runs.
8. There is no regularity between the predicted right and wrong. You can’t say that the prediction is wrong three times, then the fourth time is definitely right, and it is impossible to say that it is wrong for the fifth time. There is no law between right and wrong. This makes it difficult for us to choose and affect our funds usage.
9. Forecasting will make it difficult for us to objectively grasp the market. When you predict a directional forecast for the market through your own analysis, you will have a long and short sentiment. If the market does not move toward your prediction, your mood will turn into a psychological disorder. It makes it difficult for you to adjust your trading strategy in time, so that you are in the opposite of the market, resulting in either a deep quilt or a missed market.
10. Over-predicting the market will also put you in the illusion, ignoring the reality of the market, and thus generating a self-consolation loss trading, you will always think that you are right, the market is wrong.
11. The forecast is uncertain. This kind of uncertainty is the same as the uncertainty of the market. Trading through forecasting is only to convert the uncertainty of the market into the uncertainty of the forecast. The trading risk is not at all less.
12. People’s trading decision are controlled by emotions, such as fear, worry, anxiety, profit-seeking desires, etc., the trading behavior caused by this emotion constitutes the ups and downs of the market, Newton said, I can find the gravitation of up and down of the earth, but unable to grasp the emotions up and down of human beings.
13. The fluctuations in mood formation are not predictable, but random fluctuations can eventually form an orderly trend. The market is so full of contradictions. Many people extend from the predictability of trends to the predictability of volatility, and the results fall into the trap of trading.
14. The trend analysis report is very important for strategic trading, but for the tactical trading of ordinary r retail and medium investors, it only allows you to make no mistakes in directionality. Whether you can make profits depends on the level of fluctuations you handle. This can also lead to a conclusion: the trend is our true friend, because the trend moving is our logical thinking.
15. The core and main role of technical analysis is to enable investors to adapt to the volatile market more and more effectively, to obtain profits by adapting to changes in the market, rather than how to predict the market and obtain profits by predicting the market.
16. There is no technical analysis method and theory that can accurately predict the future. Under the guidance of this concept, how to adapt to the market has become a key factor in the success of the trading.
17. Adjustments to the trading strategy include: adjustment of trading ideas and adjustment of trading volume.
18. The market is not always in the trend, and will not always be in shock, so we can not hold on to our own ideas, at any time either keep a long-term idea, or short-term ideas, but Make appropriate adjustments based on the state of the market.
19. Your trading ideas must adapt to the market, not the market to adapt to your trading ideas.
20. When the market is very deserted, you do not have to enter the market in advance, because the calm of the price will make you intolerable, but should be patiently waiting for the emergence of trading opportunities and the start of the trend.