Gem: The Only Way For Novice To Pform Successful Traders

< p > to become a successful trader, you need a way that will help you find trading opportunities, and this method can be put into practice.

A combination of discipline and discipline will lead you to the road to success.

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< p > few technical analysts consider the difference between price and value.

This idea seems to be more suitable for fundamental analysts, but they can not handle this relationship as well as technical analysts.

When I think that an event in the future will increase the value of a stock, and the current price is lower than the value, I will consider buying.

Buying under value, selling above value, and having a clear logic, can give me a firm confidence in the face of adversity.

In order to achieve this idea, we need to answer three questions: how to define value; how to track value changes; and how to measure the gap between price and value.

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< p > trading requires confidence and modesty.

Because the market is too complicated, a person can not control everything, his information and knowledge will never be complete, so traders should maintain the necessary modesty. This is also the reason why we should choose the research field.

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< p > trading in a specific field will eventually become an expert in the field, so that we can have confidence in this field, but we should be modest enough for other areas.

By comparing financial markets with medicine, it is impossible for doctors to be a surgeon, psychiatrist and paediatrician at the same time.

It may be possible to become a well known doctor in various fields centuries ago, but in modern times, doctors must choose the path of specialization.

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< p > the stock fundamental analyst studied the value of < a href= "http://www.91se91.com/news/list.aspx ClassID=101112107105 > > the listed company < /a >. In the futures market, the basic analyst explored the balance between supply and demand of goods.

On the contrary, technical analysts believe that stock or futures prices have reflected everything.

The technical analyst studies the chart and index system, and concludes the winner in the current paction.

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< p > there is no doubt that there will be some intersection between the two methods.

Rigorous fundamentals traders look at charts in pactions. Similarly, rigorous technical analysts hope to get some information about market fundamentals when trading.

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< p > almost every chart is composed of price trend movement and sidewalk finishing.

Strong trends attract beginners, as you can see clearly from the upward trend chart that if you buy at the bottom and hold until now, you will earn a lot of money.

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Less than P. However, experienced traders know that the big trend is not clearly visible in the chart, but when the trend seems clear in the middle, it becomes blurred.

Trending trends are like riding a wild horse that always wants to throw you down. Trend trading is much more difficult than it looks.

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The P market tends to keep going up and down. Although there is no scientific method to explain why such shocks occur, counter trend traders will use this concussion feature to do business.

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< p > counter trend trading has its own advantages and disadvantages.

Anti trend trading takes longer and does not require much patience, which determines that counter trend traders can get less returns.

But for anti trend traders, it is very important that they should "control their own hands" and wait for the right time to attack.

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< p > in the machinery trading system, Richard Weisman clearly describes the differences between the three types of traders, namely, trend following, average reverse (anti trend) and intraday traders.

They have different temperament. They will grasp different trading opportunities and face different challenges.

Although most people's trading styles fall into one of the three mentioned above, people seldom realize what kind of traders they are in making decisions.

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< p > subjective traders will see "a href=" http://www.91se91.com/news/list.aspx ClassID=101112107107 "> price chart < /a > in the paction, get favorable signals from them, then make sales decisions.

Analyzing charts and making decisions is a stimulating and active process for most of the subjective traders.

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< p > system traders can not accept this seemingly casual paction.

They do not like the progressive decision-making process of subjective traders, but prefer to study historical data of prices, design a system that performs well in history, and make optimization, and then use it.

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< p > the same as before, they let the system track the market and generate signals.

System traders take advantage of the fact that the market will repeat itself. Of course, a good system trader knows that the market will not simply repeat the past.

The basis for measuring the quality of a trading system is the robustness of the system.

System consistency refers to the fact that the market condition remains reasonable under the changing market conditions.

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< p > there are some shortcomings in these two ways of paction. Subjective pactions make it easier for novice traders to make reckless decisions and to trade arbitrarily, while beginners of system pactions often fall into the trap of curve fitting. They spend a lot of time doing research, and finally make a perfect system in history.

However, if it is perfect in historical tests, what is the use? History will never be repeated simply.

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< p > subjective trading fascinates me. As a subjective trader, after studying the market index and industry group, I make a decision to make more or shorter trading decisions, then roughly establish the trading price, and apply the capital management rules to determine the scale of the paction, and finally implement the paction.

After a planned sale, the price dived and lasted for a period of time, which would bring a kind of indescribable pleasure.

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< p > to decide whether to become a subjective trader or a system trader does not need to analyze the cost / earnings ratio, just follow his temperament and preferences, which is the same as choosing where to live, what kind of education to accept, whether to marry or who to marry.

What is interesting is that when the two traders reach their high level, their behavior will make people fail to distinguish which type they belong to.

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< p > in my view, the top system traders will continue to act like a subjective Trader: when to activate the system A, when to reduce funds on system B, and when to increase or reduce a trading variety from the trading pool.

At the same time, smart and subjective traders also have a series of trading rules that appear to be very mechanical.

For example, I will never resist the signals given by the composite system, nor will I buy on the channel of the daily chart or short on the lower track of the channel.

When they open their positions, they will combine the two ways of trading, but they will not change their basic methods.

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< p > to observe a K line, we can only see five data: opening price, highest price, lowest price, closing price and turnover volume, and the futures chart also includes positions.

Therefore, I have formulated the "five bullet" rule - no more than five indicators are allowed on any trend map, and if you do, you can add one more, but never more.

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< p > for me, four are enough: moving average, paction channel, < a href= "http://www.91se91.com/news/list.aspx ClassID=101112107108" > MACD < /a > strength index.

You can also use these four indicators without knowing how to use those indicators.

Choose an easy-to-use tool, learn and use it continuously until you are able to use these indicators.

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What is the classic form, such as head, shoulder, triangle and trendline? I believe that most of the classic form is called "benevolence", "wise men see wisdom" - traders draw classic form on the map to confirm their view, I doubt the classic form, because the classic form is too subjective, and I believe in the simplest mode -- support line and resistance line, and breakthrough and callback. P

I like metrics that are calculated because they have clear signals and no multiple interpretations.

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< p > I believe that successful trading has three basic elements -- method, mentality and capital management.

That is, indicators and tools are only part of it, and equally important is mentality and capital management. Good trading results always combine all of them.

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