Principles of foreign exchange market experts

11 Principles for Market Masters: Successful Investing is Not Accidental

Number one: really want to trade.

This is the first principle, with one veto power, if you don't "love" this business, please go away. I guess this is not just Murphy's point of view, all super traders are crazy about trading, all successful people in all industries rarely do not love their profession, success is no accident.

Article 2: I, WHY and HOW.

I--- I do want to trade, WHY--- Why do I want to trade? HOW--- How do I plan to trade? These are three questions instead of one, must have figured it out. Again, why do you want to trade? If you can't answer, please go away. --- No prompt.

Rule number three: You are who you are.

Well, the above two questions didn't make you go away. Congratulations. Now tell you how to trade. How to trade? Build trades that match your personality. This is not just Murphy's point of view, Van. Keppe also particularly emphasizes that the trading strategy must be consistent with the trader's personality. Of all the factors in trading, you, number one.

Rule 4: You are still you.

Even if you have a perfect trading system and money management strategy that fits your personality perfectly, which is actually impossible, you still have to exercise moderation, and you are still you.

Article 5: The sea has a shore, and the sky has an end.

Determine a method, use it, whatever. Fundamental analysis, technical analysis, value theory, value-added theory, charts, indicators, mechanical systems, intelligence systems, waves, Gann, Gann, you always have to know a little bit. It's important to know a little bit because it teaches principles, and more importantly to determine its boundaries, you should know under what circumstances it can and cannot be used.

Number six: talent and sweat.

Now, let's say you "love" trading, you have good trading motivation, a systematic trading strategy and money management that suits your personality, but also know moderation and master a complete analytical technique, congratulations. However, I'm sorry to tell you that only a few people can become super traders, and the rest can only rely on sweat to become net profit traders.

It takes talent to become a super trader. Edison said that 1% talent + 99% sweat = what, as if very politely, let's calculate how much this 1% talent is equal to. Buffett is the undisputed stock king today. Since 1965, his annual compound interest has only been about 26% (the starting and ending time varies). This is nothing in the Chinese stock market. What matters is that he can go year after year.

Cody Eisegaard, the most outstanding master mechanical trader since the widespread use of computing technology in the 1970s, has increased his wealth by a factor of 1000 in 18 years, with an average annual compound interest of 46%. His results are nothing in the Chinese stock market. How many times did Shi Kai's capital increase in 1999? But Shi Kai has been in good shape for a few more years! So accidental success is chance or luck, and long-term success is genius. Now, do you consider yourself a genius? Are your pursuits higher than genius?

Article 7: Those who are good at fighting have no wisdom and no courage.

Sun Tzu said, "Those who are good at fighting have no wisdom, no reputation, and no courage." There are thirteen chapters of "The Art of War", and there is no more essence than it. The more effortless and natural the transaction process, the greater the chance of success. Murphy said: "A perfect transaction does not require effort." Deep. I can't understand it, I can only feel it.

Article 8: Management, management, management.

What to manage? Funds! No matter what you trade for, it is essential to make a profit. Funds are the starting point and the end point of trading. There are some lessons to learn from,

(1) Do not risk more than 1% - 2% of your capital in any trade. Strongly disapprove of more than 5%. Murphy is talking about futures. As for the stock market, it can be relaxed a little bit, but in my opinion, it is still strongly opposed to more than 10%. I usually use a 5% stop loss and spread the risk through a portfolio.

(2) Determine the exit point before trading.

(3) Set a pre-set amount (10% - 20%), and if the loss exceeds this amount, exit the market to analyze the reason, or drastically reduce the scale of the operation.

(4) Enter and exit in stages.

(5) Correctness is more important than genius. Genius can buy low and sell high, and can buy the bottom and sell the top. I am not, I just want to win.

Rule 9: Rules, rules, rules.

Foreigners also understand that there are no rules, and they pay more attention to the spirit of the law. What is "law"? According to classic Western political science, law is a contract between the people and the government, and the US Constitution is a typical case. Unfortunately, a considerable part of the people do not like these things. Traditionally, we focus on habits, emotions, face, blind obedience, and feelings, but not contracts. There is no need to repeat the meaning and meaning of rules, rules, and laws. Murphy said that you can never avoid bad trading habits - the best you can do is to let them lurk. The best effort, I say, is not to form these bad habits in the first place. The worst habit of all bad habits is to disrespect the rules.

Article 10: Independence.

Do you have an independent spirit? It would be better to have. Mr. Market, Professor Benjamin Greian (Buffett's master's supervisor), clearly illustrates the value of independent spirit. The following points are worth referring to:

(1) Dare to act and act. Dare to act but dare not take responsibility cannot be called independent.

(2) Dare to take action. You have an idea, can you realize it in the first place? Today is the most important day.

(3) Dare to give up. Giving up is also a virtue.

(4) Face reality head-on. No matter what it is, face it head-on, face it head-on, and then analyze the specific problems.

(5) Self-criticism. Self-criticism is easy. You and I have written that self-criticism must not be excused.

(6) Dare to win. Expand your profits, sail with the wind, and win to the end.

(7) Dare to fail. Failure is defeat, and failure is part of it.

(8) Refuse to be comfortable. Human nature tends to be comfortable. If you want to succeed, don't do things that are "comfortable".

(9) Reject hope, reject must. The stock market has "what" and "what could be", but there is no "what hope is" and "what must be". Hope takes away opportunities, and must win can only lose.

(10) Dare to break through, and rest on your laurels is the scariest thing. Gil Blake is a mutual fund manager who makes incredible profits in the long run. In fact, he entered his trading career by accident. Once he tried to explain to his friends that stock prices are random, and when he realized he was wrong, he became a trader.

The above ten articles can actually be divided into two categories: daring to act, daring to take action, facing reality, daring to win, and refusing comfort are the active side, while daring to give up, daring to fail, rejecting hope and necessity, self-criticism, and daring to break through are the other side.

Article 11: Life.

Trading is not the whole of life, how beautiful life is. The above ten rules about market masters are enough. Murphy's "trading is long and easy, and there is more than trading in life" as the last item in the last chapter is meaningful, just like the old "Yi" The last hexagram is "Weiji". Life, it can tell you why you "really want to trade" or "really don't want to trade".