Forex: How to Find Your Own Problems and Improve Your Trading Realm

If your trading is consistently losing money, there is nothing you can do. I believe that many friends think of the problem is to optimize the system, find better technology, and design better and more scientific methods. This is true in itself, but it ignores the essence. Because trading must start from itself, not from the market. The most effective way is to organize and summarize and analyze your trading records, find your own problems through trading records, and solve them in a targeted manner!!

So how can I analyze my transaction records to find any problems?First of all, you must know where you lost money and how you lost money. This should not be confused, because by analyzing the reasons for the loss, you can find many problems that occurred during trading, thus providing an opportunity to solve the problem. Only by facing your own miserable history can you start to succeed in trading. When you have sorted out all the trading records, you can see that many problems can be controlled by controlling your trading behavior.

1. Count costs and expenses to determine whether transactions are too frequent.Stock fees are generally calculated as a percentage of the transaction amount. Calculating the flow of the transaction amount can calculate the transaction fee. Foreign exchange gold is mainly reflected in the spread, and the transaction cost accounts for a high proportion, which means that you are trading too frequently. In the short term, the cost may not be a big problem, but in the long run, you will find that frequent trading will actually cause a lot of cost pressure. If you are profitable, if you always lose money and trade frequently, then you will not take your account seriously.It can be said that many people lose money, mostly because the trading frequency is too high. If you don't believe me, you can try to double the trading frequency. You will magically find that your losses will naturally decreaseReduce the frequency of trading and wait patiently for high-quality trading signals. You must know that this is the most efficient way to solve losses, because when you reduce your trading costs by half, it means that you have also reduced your losses by half. Of course, you may also lose some profit opportunities, but it doesn't matter. As long as you can find those high-quality opportunities, the basic profit can still be guaranteed.

2. Secondly, it is to calculate the average profit and loss points per order.This way, it can help you recognize the profitability, analyze the problems that still exist in the stop loss, how many points of profit per transaction, that is, the average profit points, and then calculate the list of losses, how many points of loss per transaction and the average loss points. If your profit-loss ratio is always at 1:1 or lower, it is obviously unreasonable to earn enough points. In the final analysis, it is the problem of trading ability. The average profit points is the most intuitive response to trading ability. If you can't reach one-third of the regular daily average volatility of the trading target, then it will be very difficult for you to make long-term profits. Therefore,You must set a profit margin for yourselfFor loss orders, if the loss of points is relatively high, it means that the stop loss distance is too large, and the tolerance for losses is too high. In this case, tightening the stop loss can only treat the symptoms. Only by strictly controlling the opening position and choosing a more favorable margin of safety can the root cause be cured. If there are huge losses that raise the average value, there should be no stop loss orders. This requires you to set your own stop loss amount, that is to say, the position, stop loss amount, and stop loss level must be combined. Otherwise, if the stop loss is not an effective stop loss, there will be frequent stops. The stop loss is effective, but it is relatively large. Then you must reduce the position to control your stop loss limit.

3. Then the next step you need to do is to analyze the leverage utilization rate and observe whether there is any heavy position behavior.As for the leverage utilization rate, there is no clear definition of light positions and heavy positions, but I mentioned a point of view before that it is best to control the initial opening of leverage within 2 times, not more than 3 times, so that you can relax the stop loss at the same time, and bring effective stop loss, and also take into account the effectiveness of the market. If the higher the leverage utilization rate, the greater the risk of capital, then we need to use risk control to manage positions, and also need to calculate the profit and loss amount per unit volume. Now there are many ways to make short profits from heavy positions and scalping in the market. We must be clear about the way to earn small points from heavy positions. The randomness is too large, and the risk will be very high, so that the probability of collapse is high. And when most of your profits come from heavy positions, it means that most of your losses also come from heavy positions. The most terrifying thing about heavy positions is that you are reluctant to stop losses or panic stops. If the amount of losses exceeds your psychological tolerance, then your trading behavior will be dominated by panic.Therefore, don't go all out in trading. You must learn to enter the market in batches in a planned manner, enter the market lightly, and increase profits is definitely the final way out of trading.

Having said so much, in fact, the optimization of trading results only needs to start from your own trading records to find a good solution. Don't be torn by technical advantages. Practicing magic skills every day will lead to obsession sooner or later. The hardest thing about trading is to keep it simple and pure. Sometimes you need to rely on intuition and experience, and more often you need to rely on scientific training methods to find problems from yourself. Only in this way can you solve problems more specifically. When you repeat these actions I mentioned above a few times, your system will gradually become qualitative over time, and only in this way can your trading be on the right track.