Category: Money tips Release Date: 2005-12-16
The simplest trading systems
One of the most simple trading system, including at least four parts: buy, sell, stop, position control.
As speculators, we are taking advantage of market price fluctuations to their advantage. Occurs only when the market you are able to grasp the volatility of the situation, you have a profit ------ may look simple, but very, very important ------- This is to say, some fluctuation You can grasp, and some volatility you can not grasp, or do not need, such as downward movements (stock market), or very low-amplitude fluctuations. Therefore, the transaction is involved in your system to participate in the volatility, but not all.
A transaction is a process, not a simple forecast. In short, you have to determine in what circumstances to buy, buy a lot, if the market does not want you to imagine the development, you should be how to deal with your position, if the market would like you to imagine as the development, you should do.
In my trading system (lever-operated method), with regard to purchase of four principles:
1, in a simple upward trend in the purchase;
2, in complex callback upward trend, there appeared to buy time down the fractal;
3, break up when the previous high bid;
4, in the sideways trend for the next stop along the buying;
These four principles are the basic principles of buying transactions, when the market situation does not appear in one of these four time
I do not consider buying.
I am so mean to write does not want you to do the same, but would like to say, as a trader, you also need a similar principle, in your trading system. In addition, you also need considerable selling principles.
If you have some business experience, very often there will be some changes in the market "feel", these "feel" should be built on top of your trading system. We believe that the transaction in more often to rely on feel.
When the market in accordance with the development of your system, you do not need to do, patience can be looked at, you have to understand the behavior of the transaction, is the moment thing, a year more than 200 trading days, the real deal , it was perhaps only a few hours, others are long and lonely wait.
In the market-friendly, you must learn to used to profit, which is different from traders an important sign of maturity. Suppose your cost is 8 yuan, the market price is 80 yuan, but the trend is still upwards, would you hold firm? Many traders at a profit when the insecure, while the losses are sometimes a little peace of mind, so how can the profitability of long-term stability?
Regardless of what kind of trading system, and regardless of what kind of trade principles, errors may occur. How to deal with mistakes, whether the transaction is another important sign of maturity.
Traders have an instinctive, or inner greed: they want all their transactions are correct, once the errors have to find a variety of reasons for defending yourself.
Seriously think about it very funny, you are responsible for their own, not to who is accountable, why self-deception? Their own how to forgive? Do not forgive myself for what?
Any one trader, even George Soros (Soros), also will appear "wrong" trade practices. Is not whether there is an error, but rather how you look at the error. This point, we have "how to build their own trading system 3 ------ loss" in the stressed.
Finally it is about fund management. This is also a foundation, is also a trading system in a very important part.
Generally speaking, we are based on risk level to determine the proportion of funds. Can also change the direction of the market "probability" to determine.
To determine the use of funds based on risk, that is, if you are able to control a risk you can tolerate the context, you can use more money, or the use of funds should be reduced.
Such as market analysis of your choice out of a stock, intervention price is 10.30, stop-loss is 9.90, then the potential loss is 0.4 yuan, or about 4%, while the principles of your system is a single transaction does not exceed total capital losses of 2 %, then you have to use up to 50% of the total capital ----- 50% * 4% = 2%; if the intervention price is 10.80, stop-loss is 9.80, may be a loss of 1 yuan, about 10%, then your use of is the total capital funds of up to 20 %----- 20% * 10% = 2%.
This is the units of the principle of the use of funds. Of course, in actual transactions, the traders should have different portfolios, or that the traders should have different types of stocks. When the tape to the good, can increase the position, this position has been an increase in general do not hold the above stock.
