The Four Stages of Trading - The Road to Stable Profitability

first stage

I feel that only by predicting the right trend can I make money. Trading depends entirely on feelings, news, and other people's advice. I follow hot topics and even pray when I lose money. Believe in prediction, have obsession, and think that you can beat the market, instead of observing the market itself and whether the trend is still there. Let’s not talk about the high probability that the prediction is inaccurate. Even if the prediction is accurate, you will leave the market with a big loss. Because the higher the winning rate, the deeper the obsession will be, and you will feel that you are a stock god. As long as your prediction is wrong once, you will be in a dilemma when you experience a big loss. The more money you lose, the more likely there will be a big reversal at any time, and you will continue to lose money if you don't leave the market. When I left the market, I was worried that the price would skyrocket as soon as I sold it. At this time, I began to understand the importance of the trading system, and had a preliminary understanding of when to attack and when to defend. I continued to summarize the rules and then entered the next stage.

What I just started doing is minute-level two-way trading. When I feel good about trading, I can trade twenty or thirty times a day with a 100% winning rate. I even draw a line and follow the line exactly to the point. I also recorded a video to witness the miracle. I felt that I was very good, but in the end I still left the market with a huge loss. A high winning rate is nothing more than the same trend in the past few days, and the strategy used is just right to capture every fluctuation. It is like over-fitting in quantitative trading. Once the trend style changes, how high the winning rate was before will be how miserable the losses will be later. Superposition The mentality collapses and the operations become deformed. They will not stop and calm down for a while until the position is liquidated.