It is not difficult to find a trading system that can be profitable, but one thousand people use it, there will be one thousand results, just like the trading system in the "Turtle trading Law", only 1‰ of people stand on the top of the mountain, and finally achieve profit, and others can only become cannon fodder for trading this war. In investment transactions, many people in order to capture the large band market, obtain excess returns, but also suffer from the ever-changing market that there is no way to see accurately. Will be in accordance with the established investment ideas, through a small amount of funds to verify their own trading strategies and tactics. The professional point of view is called trial and error, and the profit and loss generated is called trial and error cost.

As the saying goes, "practice is the only standard for testing correctness", so daring trial-and-error trading is also a necessary artifact for winners.

What is trial and error trading?

In investment transactions, many people in order to capture the large band market, obtain excess returns, but also suffer from the ever-changing market that there is no way to see accurately. Will be in accordance with the established investment ideas, through a small amount of funds to verify their own trading strategies and tactics. The professional point of view is called trial and error, and the profit and loss generated is called trial and error cost.

Trial and error trading is to affirm the logic of their trading strategy. Do not do the opposite of their investment strategy trading actions, will be hit in the face, the result is often a slap on the left and right slap is washed out, and this probability of more than 70%. Therefore, the trial-and-error strategy is to verify whether the package strategy is correct or not, and is the "scout" of trading.

Trial and error is not equal to losing money and wasting money, even if the more complex trading strategy: basis arbitrage, hedging transactions, etc., are to try and error. Each order trial and error is the realization of the plan, simulation trading is not able to achieve such an effect. Trial and error is sometimes very profitable, in this perspective, trial and error is not equal to losing money, the premise is to try and error according to their own strategy.

Trial and error trading strategies

Each person's capital amount, risk preference, personality characteristics are different, trial and error trading strategies are fine-tuned, but the big framework remains unchanged.

Small band market, wrong 2-3 times, belongs to the direction of the judgment failure, if the departure direction and the judgment synchronization, you can follow up 1 time, try not to backhand again order, do the so-called correction error. 70% will be washed out.

The mid-band market, wrong on 3 times, belongs to the intermediate direction judgment failure, to adjust the idea. After all, the market has gone through a stage, the cost has risen, and then the risk will increase, and it is not cost-effective! A lot of masters are also here to sink sand.

Large band market, wrong 2 times, that is, the market is completely reversed, and many investors who trade with the trend will lose money, which is also in this. A volatile market in the process of a large rise or fall will consume 80% of your periodic profits. This is normal. Don't move at every turn, pan master these chips are staring at death, you do not know the cost of his chips out of cash. Do such a market, only for one direction! How easy is it to navigate the skies? Forget about it.

Since it is trial and error trading, of course, it is not heavy, it is best to strictly control the amount of capital, this point to remember! In the trial and error stage of the market, the light position practice of large-cycle trading can not only effectively protect the principal from serious losses, but also avoid the risk of losing control of emotions in the face of short-term trading.

Short-term trial and error accounts for less than 30% of the total capital

The trial and error of the middle line accounted for less than 20% of the total capital

Long-term trial and error accounts for about 10%-15% of the total amount of funds

Fundamentally speaking, there is no absolute look at the market and then do, there must be one of the two results of doing right or wrong. So we often see some big coffee trading, wrong to lose money on the cut warehouse, and then in the same direction to place an order, cut again, cut again. Many people were puzzled. This is actually the way! A lot of people just see the buzz. Results you statistics a wave of market down, if the trial and error cost is 1 yuan, the cost and profit odds as high as 1 to 5!

Carry out trial and error trading, repeat many times, and build confidence in the trading system. When we know that our trading system can be profitable in the historical market for many years, and sometimes it will encounter a decline cycle, but it does not affect its final profit results, then we have the confidence to firmly execute, and it is difficult for other people and things to interfere with our own decisions.

Source: FX110