The beginning of trading is effort and method, the middle period is wisdom and mindset, and the high-end is character and cultivation. One must clear their mind, keep a calm heart, and overcome all human flaws to seize the chips for profit.
I sincerely suggest that whether you are a beginner or an experienced hand, you must read this article I wrote today, as it will definitely be of great help to you. I went from being bankrupt to financial freedom, achieving an 1800 square meter villa and a Rolls Royce along with a nanny car in Shenzhen!
1. Do not be proud and complacent when making profits.
An arrogant person ultimately destroys themselves in their pride. In the process of investment and finance, if a person becomes proud and complacent due to making profit, there will always come a day of losses. The reason is that a proud person will ignore the opinions and suggestions of others because of a small achievement. Even if the market changes, they will stubbornly believe in themselves, thinking their decisions are always correct, and will neglect risk prevention, which may ultimately lead to losses.
2. Do not rush to recover losses.
Gains and losses in trading are normal phenomena. Having talked about profits, let’s discuss losses. Profits can make some people proud and complacent, while losses can trigger a strong desire for recovery in many. However, recovering losses also depends on timing. If one is too eager to recover losses, they may make irrational decisions. For example, some people, eager to recover, bet all their trading funds on a seemingly promising coin. However, the market is always unpredictable and uncontrollable. If that particular coin declines, they may not only fail to recover but also incur even greater losses.
3. Don't be greedy for quick gains
Accumulating wealth through trading is a long process. If during this process one is both greedy and seeks quick profits, it is basically impossible to achieve wealth growth. Both mentalities drive people to chase profits, and when faced with high returns, they lose their rationality. But high returns mean high risks; blind investment can only lead to failure. Only by pursuing stable wealth growth can one balance risks and profits.
4. Do not worry about gains and losses.
Yingying believes that investors who are worried about gains and losses often struggle for a long time before investing, fearing their money will incur losses. Once they finally decide to invest, this mentality becomes even more pronounced. Just seeing a decrease in their account balance can cause anxiety and irritation. If the decrease is too much, they either withdraw their investment or seek insider information hoping to break even, which usually ends in losses. Additionally, hearing news about platforms shutting down or difficulties in withdrawal can also make them worry about the safety of their investments. Even if their platform is not experiencing any issues, they may choose not to invest again, making it difficult to continue on the path of investment and finance.
If your mindset is not well-adjusted, it will be difficult to see the situation clearly. Once your investment mindset stabilizes, let’s talk about the trading techniques you want to know:
1. Use technical indicators but don’t get stuck in the quagmire of technical indicators.
There are countless technical indicators in candlestick charts. Sometimes learning too much can actually confuse one’s objective analysis. The ultimate goal of learning these indicators is to obtain the information you need. If you have obtained the needed information from one indicator, then there is no need to get bogged down with other indicators, as many indicators in candlestick charts have similarities.
2. Go with the trend.
Those who follow the trend thrive, while those who go against it perish. In investment, one should follow the trend. Grasping the big trend is like getting on a spaceship that quickly takes you to great heights; it’s hard not to make money. Conversely, if one operates against the trend, especially in major market movements, they will fall into a bottomless pit that cannot be filled, deeply trapping the investor and directly causing massive losses. Therefore, grasping the trend is more important than everything else.
3. History may not repeat itself, but there are lessons to be learned.
In technical analysis, there are indeed times when historical data can provide clues. The cyclical patterns of the market do not change; other markets are similar, transitioning from adjustment periods to growth periods, from growth to maturity, and then from maturity to recession, repeating endlessly. Therefore, historical data can be comprehensively considered in technical analysis.
4. Deeply analyze the news.
The currency market transmits a large amount of information every day, so conducting in-depth analysis of this information is very important. As a qualified investor, the most basic thing is to learn to discern the truth from falsehood in information, especially some half-true, half-false news that can be very misleading. Sometimes a piece of news can directly affect the directional judgment of the market.
5. Summarize experiences and find a method that suits you.
Watching fish by the pool is not as good as retreating to weave a net. How can one catch a tiger without entering its den? We often envy others for how much money they can earn in the currency market. We watch others operate fervently, but we ourselves do not dare to enter the market, fearing that we will lose everything. I suggest that if you have enough knowledge and sufficient skills, how many times in life can you take a gamble?
The two dominant factors in the market, technology and news, are topics that investors consistently debate. Is the market driven by technology or news? In fact, neither; it is human sentiment that drives the market. Without profit motives and without greed, there would be no traps and conflicts. In the market, one must deeply understand the principles of advancement and retreat, offense and defense, to remain stable in the wind while being able to turn crises into safety when in a trap. The saying still holds: if you give trust, I will return profits!
If you are already in an undesirable situation, you can come to me for help; I won't let you make the same mistake again. If you have been struggling in this market and are battered, feel free to come to me, and I will help you regain your confidence.