ATFX-7 years of experience in foreign exchange trading: naked K + mindset + money management

Before getting into the topic, I would like to describe the experience that most traders have had. Whether you are a veteran with many years of trading experience or a newcomer to the market. When we think back to when we first entered the trading industry and started trading on our own (it must have been started by yourself rather than following the advice of others or teachers to enter the market passively) Are you confused by the many magical indicators on the disk? Are you struggling to explore the signals of each indicator and the meaning of the indicator? Are you confused about whether the formation of the golden fork and the dead fork is an entry? Are you confused by the sudden reversal after finally gathering the courage to enter the market according to the indicator signal? Are you decisively abandoning some indicators after being fooled many times and continuing to explore other indicators that can be tested? And after this state persists for 2 to 3 years or even longer,What you find is that relying solely on metrics or so-called systems is unstableSo we began to trade in human nature, mentality, discipline, or the so-called Zen, and even in gossip, tai chi, Buddhism, and even Taoism, seeking human stability and trying to overcome our so-called delusions? So trading is described as a job that only a few people can master to overcome human weakness and human greed. Is this really the case? Maybe we have entered the wrong path from the beginning with a wrong map to find what we think has always been the holy grail of trading? After years of hard searching, I am more convinced that it is the latter, that our initial efforts are wrong.

Naked K

The form of price is the K-line. And the study of the K-line will face the truth of the market more directly.Naked KAs a way of technical research, it is the simplest trading method that returns after numerous users have gone astray.Naked KRaise the main body of the transaction, that is, the price, to the most essential issue of the transaction, that is, whether we buy or sell, the root of it is the price of the traded item and its price difference. Therefore, since we buy and sell goods for the price of buying and selling goods, why do we study other things besides price? If we abandon price or add other factors to the unrelated business of buying and selling goods, is it the opposite? Although the vast majority of indicators are designed to study price for the purpose, just as you judge the beauty and ugliness of a girl's appearance, but praise her clothes and ignore her appearance, isn't it avoiding the important point? Of course, although their clothes can indirectly reflect a person's taste, whether their appearance is outstanding or not seems to have nothing to do with a person's taste. There is no reason to believe that a person's taste and moral nobility will make their appearance develop in the direction of beauty. Therefore, in the direct evaluation of their appearance as the standard, those who pay attention to their clothes and even shoes are in the opposite direction.

Returning to trading is to set aside the price of the traded item and pay attention to the indicators evolved from various calculation formulas and programming, which is the opposite of avoiding the important point.Here, we are not saying that indicators are completely useless, but that they are just auxiliary tools or rulers.It does not bring any gains in itself. Because what we are trading is not an indicator, not a golden fork of the moving average, not a 0 up and 0 down of the MACD... If there is a moving average in the trading variety on a certain day, then you use the dead fork of the moving average to short and long, which is very appropriate, but what we are trading is the currency and the index itself. As for the role of indicators, I will mention it later, and I will not show it here for the time being.

Transaction Relativity

For any set of trading ideas to exist fully and alive in the market, they must have a theoretical basis to support their existence. Just like Dow Theory, Gann Theory, Chaos Theory, Wave Theory, or Entanglement Theory, trading ideas without theoretical basis can only be regarded as trading skills and cannot be regarded as independent trading systems.Naked KThere are many technical articles or books, such as "Japanese Wax Erosion Diagram Technique", "Sakata Technique", and many technical skills about pure K-line on the Internet. They are impeccable in the research and use of pure K-line, but I personally think there is always a little theoretical basis. The vast majority of K-line explanations put moves in the first place and ignore the systematic organization of effective ideological theories. After countless groping and reading many articles and practices about K-line, finally under the light of the wisdom crystallization of predecessors,Naked KTheoretical basis ofTransaction RelativitySlowly take shape. Here, I would like to express my heartfelt thanks to the countless people who have studied the K-line for transactions. AndTransaction RelativityIt is a relatively novel theory that is perfect and independent of other technical categories on the basis of summarizing Dow theory chaos theory.Transaction RelativityFocus onNaked KThe user provides theoretical support, allowingNaked KIt's much simpler, much dumber, much easier to use.

The theory of relativity was proposed by Einstein. It talks about the basic theory of space-time and attractive forces.Transaction RelativityIt has little to do with Einstein's theory of relativity, but is influenced by Newton's laws.

The reason why it is namedTransaction RelativityIt is because we study the relative relationship between the price in motion or the price that is beating and the price at rest, which is the historical K-line. Newton's laws study the laws of motion of objects. Essentially, the real-time price of the K-line and the price at rest also constitute a kind of motion. Therefore, Newton's laws are intrinsically related to the fluctuation of the K-line. We know that when an object is moving, we can see the direction of motion of the object due to inertia or force. But it is very difficult to accurately predict and calculate the distance of the object's motion. For example. If you were to study the motion of a thrown soccer ball, you could tell where the soccer ball was going when it was kicked out from under your feet, and you could tell exactly where the soccer ball was going to stop when it came out from under your feet, that would be a pretty complicated task, taking into account the force you're kicking with, the mass or weight of the soccer ball, whether it's full, that is, airless, and also taking into account what the soccer ball is doing, like on concrete or grass, with the same force, the same mass of the soccer ball, but with different amounts of friction, the ball has traveled a different distance. Fortunately, all we want to study is the direction of the ball's motion. That's what we care about. We also care about when the ball stops and under what circumstances it changes direction. As for how far the ball has to move precisely, we consider it from time to time. Put in the transaction or the K-line. What we want to study is the direction of motion of the K-line and when the K-line changes direction and what are the precursors to the change. So before the following content unfolds. Please talk about being able to predict exactly where the price will arrive and where it needs to arrive in the future and where it is bound to change direction. These questions are all removed from your mind. We don't make predictions. We don't answer yes to things that haven't happened. We have an empty cup mentality about the future. What do we do? What we do is we judge the possible direction of the future and observe the conditions under which the direction will change. When we make a judgment, we just need to follow your judgment and verify your judgment. That is, what we need to do is to follow the movement of the price. Not predict the movement of the price. Normally. Price movement is driven by intrinsic dynamics. That is, the magnitude of the power displayed by the buyer and the seller. And the magnitude of the power of the buyer and the seller determines the direction of price movement. This is the same as the movement of the object. Two opposing forces act on the object, whose force is the largest and which side the object moves. Reflected in the price is the size of the long and short. We know. When two opposite forces of the same magnitude act on an object, the object does not travel in either directionMoving. As long as one side decreases even a little, its direction will change. Therefore. The same is true in trading or in the market. Even a small gap in long and short power can deflect the price. Therefore. We don't need to bother to find out how much money the long and short sides are investing in the game. We just need to know which side is slightly more powerful.

Write here. There are some very important issues that need your approval to continue. Otherwise the following content will become meaningless.

Well, first of all, you need to be absolutely convinced that prices are unpredictable.You can't predict the future with precision. So we don't predict market prices. Most of the time you don't know what you will do in the future and what you will do next (without deliberately doing it). And if you say why is it not bad for someone to predict a certain point to be accurate to a certain point? What I want to say is that it is just chance and coincidence rather than necessity. We can't expect chance and coincidence to happen in the market to make a steady profit. 10 times chance and coincidence are right, even if one mistake will cost you all the previous profits. Such examples abound in the market, so I will not give examples here.

Secondly, all trading plans, trading decisions, and judgments about future directions must be completed or established.It must be based on assumptions. That is to say. Any entry and exit is based on assumptions. For example, when you enter the market long. If you want to generate profits or losses. It must be assumed that you enter the market long, and the future market is consistent with my entry direction. Therefore, trading is based on assumptions, which has two sides. If the assumption is correct, then there is incorrect. If the market goes up in the future, the market may go down.

Once again, indicators do not play a significant role in trading.Because what we buy and sell directly is the price. Directly targeting the entry and exit of the price is closer to the essence of the market. Indicators, if useful or anything, can only be used as a tool to increase confidence after you make decisions that give you confidence. To be more pertinent, an indicator is just a ruler to measure the relationship between price and ruler. Essentially this is the same as drawing a random slash line on a computer screen. I can draw a random curve on the screen, and the price goes long on the short curve below the curve. Sometimes, the indicator generates no more effective signal than a coin flip.

After the summary is

1: Future prices cannot be predicted

2: Transactions are based on assumptions

3: Indicators are useless