Before analyzing this problem, I can tell you the conclusion that short-term traders really have a future.
But any successful short-term trading must have a prerequisite, that is, a trading system that is profitable. There is an old saying in China that you can win a hundred battles by knowing yourself and the enemy. So what is the literal meaning of knowing yourself and knowing the enemy and being invincible in a hundred battles. In other words, if you want to defeat your enemy, you must understand his strength, know everything about him, and know his strengths and weaknesses, so that you can better defeat your enemy! If you want to make a long-term stable profit in the futures market, you must know your own conditions and the situation of your opponents.
Later, I will analyze the current situation of the foreign exchange market, the requirements of successful short-term traders and the development plan.
Today, I will tell you about the current situation of the foreign exchange market. Generally speaking, in the foreign exchange market, the scale of funds is divided into three levels. Accounts below 100000 are small funds, accounts between 100000 and millions are medium-sized funds, and funds above millions are large funds. Well, we already know the division of the current capital scale, and we need to know the situation of our opponents in the next step.
Now we are facing more than just big institutions outside. But the opponent also showed diversified development. At least these roles are involved in the current market. First of all, retail investors account for the largest proportion, and then there are folk experts, medium and large investment institutions, programmed robots and so on. Whether it is individual traders or team operations, the preferred profit target must be retail investors. In the data of the previous period, there are 900000 small-scale retail investors. These refer to retail investors who do long and short according to their feeling without any trading system. According to the calculation of the scale of about 50000 retail investors, the market capacity is about 45 billion. Excluding the 10 billion handling fees, the market has about 35 billion waiting for you to earn. Why can't you get a share of it? Do you still think it's a myth that those small funds in the news have reached hundreds of millions? Therefore, in order to survive in this market, we must be different from those retail investors. According to that sentence, God is called God because he has done things that people cannot do.
Professional traders not only fully grasp the probability and winning rate, but also have complete fund management rules. They don't have to take unnecessary risks, they just need to know when they have a high probability of winning. The higher the winning rate, the more contracts will be doubled (if you are a novice, you need to learn the position reduction method first). If there is no good chance of winning, we will not place an order. They know how to protect existing profits; When you are unlucky, you also know how to stop in time. Strictly abide by this discipline so that they can participate in the transaction at any time. Then I will talk about the conditions needed for a successful short-term trader below.
First of all, let me talk about fund management, which is also part of the trading system. Fund management is not as difficult and complex as you imagined. The fund management method I created is simply called hierarchical fund management. In fact, it is very simple. I think fund management is only divided into two levels, one is percentage position, and the other is fixed position. Large funds use percentage positions, and small funds use fixed positions. For example, if small funds open several positions at random during the trading period, the position will be nearly 100%, which is what we call full position. You can't ask small funds to use percentage positions. At this time, if traders pay attention to their percentage, small fluctuations will definitely affect traders' real-time judgment and mentality control.
The second is the old-fashioned mentality and technology.
We are facing a new world, and our transactions are also facing a new world, but these are not the most important. We have the courage to adapt to and lead this new world, and have the ability and preparation to bear all the responsibilities. So the mentality is divided into two categories, namely greed and fear, which is the so-called same source of profit and loss. In the transaction, we need to keep the winning mentality at all times, and know that we win by probability, not by 100%. If I know that there is 100%, then I will bet all my money at all costs. In fact, it doesn't matter to lose oneortwo orders. The important thing is to pay attention to the current method. Can this method enable you to continue to survive in the market. Instead of the profits and losses of those oneortwo orders, we should worry about gains and losses. There is also a simple mention that any good mentality is based on the correct technology, and any mentality that is divorced from technology is a rogue. Give up all opportunities that don't belong to you, and then you can wait for the position you want. It will certainly appear. Even if it doesn't appear for a long time, you won't lose anything. Rome was not built in a day, and money could not be earned in a day. When you wait for that opportunity patiently, it means that you have begun to succeed.
Finally, I will briefly talk about the principles of short-term trading.
Principles are needed to do everything, so are being a person and doing transactions. As for the principle of short-term trading, I will now mention four simple points: no position retention, unless there is a large profit list, no heavy position, no frequent orders, and learn how to stop losses.
Above I just briefly talk about the conditions required for a successful short-term trader. Now I will build a framework for you. Success is to simplify complex things and then repeat simple things. Successful trading is to choose a set of simple and correct methods, stick to them for a long time, and find your own way of trading.
I think the correct attitude is mainly based on good technology. If the technology is not good, no matter how good the attitude, you will not do well, but will continue to lose money. However, when your technology is not yet mature, I still want to give you an analysis of the traders' main psychological fears and solutions.
Four fears in transaction Psychoanalysis
Fear of loss - when continuous losses are more intense, the psychology will produce a kind of fear. But I don't know this is a probability problem. People will wait and see, and when they can't stand it, they will chase orders. Finally, the more afraid they are of losing money, the more hesitant they are, and the more they make mistakes.
Fear of making a mistake - dare not do it, hesitate, resulting in unclear intention to do long and short, no trading system, and finally miss a good entry point, resulting in losses. Don't be afraid of making a mistake. In fact, with a positive profit system, there will be a small probability of wrong orders, that is, transaction costs.
Fear of missing the opportunity - the real good market will slowly fall or rise. It doesn't matter whether you do or not do the rapid fluctuation. You can't catch up with the rhythm at all. Don't be afraid of missing the opportunity.
Afraid of not making money? Have no patience to wait for the exit signal and the opportunity to close/accelerate the position, and then close out. In fact, there is no necessary connection between a list and a list. You can wait until the key position or the accelerated position, and then the small positions are all out, and the large positions are reduced.
As a matter of fact, I can use professional gamblers as an analogy. Professional gamblers not only fully grasp the probability and odds of victory, but also have complete fund management rules. They are unwilling to take unnecessary risks and know when to win. The higher the odds, the higher the stakes. If there is no chance of winning at all, we will not bet. They know how to protect existing profits; When you are unlucky, you also know to call in the golden jubilee. Strictly abide by this discipline, so that they can participate in gambling at any time. So do smart traders!
Only 3% of the people in this market will make money forever. If you want to make money, you must stand on the opposite side of the public, and you can have your own world one day!