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It's a long-term loss. Most of it's too complicated
In a conversation with a crowd of stockmates, i found a very common phenomenon: the longer we enter the market, the more people we lose are almost hoarding up all kinds of stocks. The computer viewer interface is full of more than a dozen technical indicators, and mobile phones are full of various paid warfare courses, with waves, tangents, chips peaks, and price patterns being explored each time, with daily breaks, redrawing lines, checking signals, and spending a great deal of time, but account returns remain unsatisfactory。
If you can't get it up, you can't get it up. It is fortunate that the losses have been covered, that a few thick notes have been written each year, and that the principal has continued to shrink in one transaction。
I stepped on these pits in my early days. In the first instance, with 40,000 dollars of idle capital, it was felt that the more advanced technology is available, the faster the money is made. The short-lines of the market and the high-profileness of the crowd, the hesitation of different indicators to give the opposite signal, the loss and the illusion that they are willing to cut their meat, go ahead. In a short period of six months, when the principal lost almost 40 per cent, i wondered whether it would be very difficult for an ordinary family to stabilize profits in the stock market。
After a painful breakdown, i had to hand over all of them for more than two years to unwind the rediscovery and finally sorted out the core causes of the loss: the confusion of judgement caused by the stacking of indicators, the absence of fixed standards for dealings, frequent exchange of hands in emotionalization, heavy bets to expand accounts. To find the problem, i went straight to my own mode of dealing with a total reduction, unloading the excess viewer plugins, putting down the obscure theory of heights, and setting three unchanging trading lines in the context of my three-year experience of de facto trial error, with strict enforcement of non-removable changes, regardless of the large rolls。
The initial principal of $40,000 has slowly accumulated to the total assets of the 1. 05 million accounts over a three-year period, relying on this very simple trading model. Every trade has clear enforcement standards for the duration of the cycle, without short-term work on a daily basis, without searching for insiders, without subjective prejudicing the top and bottom of the disk, and without breaking the trading framework that it has built。
Today, instead of talking about stock market myths, unwinding the three trading principles that ordinary people can understand and work on, and decoupling the underlying logic behind the very simple trade, helping to avoid the most easy-to-penetrate trade fields in the diaspora。
The first rule of trade: select the low fundamentals to be strong, away from pure emotions to be high-profile
The most important reason for the large losses in the dispersed households is the blind pursuit of the hot spots that have been raised significantly。
An industry has a good policy, with a number of labels rising continuously under the umbrella of the capital, shares, short videos, and stock exchanges all over the market, and a strong profit-making atmosphere can easily drive ordinary investors into the world. By the time the vast majority of the bulks entered the market, the stock position had reached a late mid-term stage, and after the centralization of funds in the field had left, stock prices had fallen rapidly, with a single retreat of more than a dozen being common。
The vast majority of the population will be caught in a dilemma when they are caught in the trap: when they leave the field to suffer real losses, when they hold them for a long time, and when they suffer a long fall, and when one stock is covered, they tend to mess up the pace of a year of trading。
With this selection rule, i set two hard screening thresholds, one of which does not meet the criteria and will never be placed in the observation pool。
First, the basics are protected from the risk of black swan thunder。
The screening unit gives priority to reviewing data on operations in the last three years of annual and quarterly reporting, business income, net profits without a continuing loss, and the absence of st risk warnings, high goodwill impairments, over-represented equity pledges of large shareholders, and frequent large reductions in holdings. Operating stable listed companies, even with short-term price shock adjustments, will not leave the cliff free, and the security of the principal is the most fundamental。
Second, stock prices are in the medium-term low range, with long-term development space for the industries to which they belong。
Once basic screening is completed, the location of stock prices is judged, the scale of experience is revised in the mid-term, the stock price falls back to a low valuation position of almost a year, the industry is not rapidly eliminated from the market due to policy changes, technology overlaps, and long-cycle tracks such as household consumption, high-end manufacturing and public infrastructure packages are my priority selection directions。
No matter how dramatic the short-term increase and how much money friends make on it, i will simply rule out that there is no chance of getting involved。
A number of equity friends would question and abandon the hot topic and miss the opportunity for short-term quick gain. I told you the truth in the context of years of honesty: "the loosers want to stay in the stock market for a long time, to build up wealth slowly by compounding it, to stabilize small, manageable gains, and to be much more profitable than volatile short-term windfalls."。
The rise and fall in the high-profile material unit is entirely dependent on financial sentiment in the field, is not underpinned by solid performance, falls are not clearly supported by a clear position and the retreat space is unpredictable. There is no agency to conduct research, no professional control team, and it is difficult to sell off the field precisely at a high point, with a high level of depth, often requiring several profitable transactions to cover the losses。
A low-level, basic and well-established stock, the lower-line space is significantly compressed, even if it continues to grind the ground after the purchase, as long as it waits patiently for valuation recovery, the margin of loss is manageable, the margin of profit returns is more certain, and a single loss is eliminated from the source when it hit the entire account directly。
Second standard of trade: fixed-space splits, and no single ticket is available
The second key reason for the sharp withdrawal and even loss of bulk accounts was the rise and fall of only stock on a well-loaded bill of deposit。
Many shareholders look forward to the follow-up of one stock, with subjectively assumed stock prices going up and buying all the funds directly into the account. When the situation rises according to expectations, the book profits appear to be significant, and once there is a large collective rollback, a sudden-out of interest announcements, a daily drop of 56 points is widespread, total account assets are rapidly shrinking, and traders ' mindsets can easily collapse。
There are two kinds of errors when mental imbalances occur: low-level meat cutting under panic, with real losses on the table; and flat-stretching and falling, allowing losses to be magnified and trading initiatives to be completely lost。
In combination with my financial volume and risk tolerance, i have developed a fixed silo programme, which, no matter how well defined the overall movement, is strictly capped and is not impulsive。
The account is divided into an average of four units, with only 20 per cent spent on the initial build-up of a single unit; a second build-up of 20 per cent after the stock price has stepped back on key support positions and has moved in line with the forecast; and a long-term mobile reserve of 40 per cent to cope with a systematic rollback and a small low-share replenishment of warehouse costs。
This silo model has two very practical advantages。
First, risk dispersion, even when there is an extreme decline in holding stock, affects up to 20 per cent of warehouse funds and does not cause a one-time downfall in principal, and traders ' mentalities are not easy to completely collapse
Second, there would be no awkward situation where liquidity would be set aside without funds to save itself, and shock situations could use idle finance bands for price differentials, gradually lowering the average price held in the warehouse and increasing the probability of a break-in。
Many people feel that cattle markets are more profitable than they are, with a three-and-a-five-year cycle of smoothing the account curve, a more stable flow of funds, and a combination of long-term gains that are far more frequent than traders who gamble。
Even in the event of a phase-by-stage situation, i will not break the standards of position. Step-off is only a fraction of the profit, and the silo is a solid loss of principal, and in stock transactions risk control is always ahead of short-term gains。
Third trade guideline: pre-describement of margins and loss and enforcement of non-subjective prognosis of point machines
The selection logic is rigorous and detailed, and all prior studies lose their trade value without rigid landing standards。
It is also the most common trade-related disease in the diaspora: the thinking before buying is clear, the five points are set to stop the loss, the price of the stock is set down in small percentages, and there is a great deal of luck in the heart. The price of the stock is felt to have rebounded quickly, the five points slowly spread to 15 points and 20 points, and the final depth is forced to lie on a long line; the profit phase is also prominent, with the seven or eight points remaining greedy, with the stock price shrunk sharply, with the last small loss on the profit order。
With a view to completely changing the emotional transaction disorder, on the day of the transaction, i marked the profit and loss values in the transaction notes, regardless of how volatile the book is and how disturbing the market news is, the price touches the scheduled point-to-place direct-list operation, does not temporarily change the criteria, and does not speculate subjectively that the market will rise or fall。
My real-value settings are simple and straightforward, and there is no complicated formula:
Loss lines: when an equity is purchased, the equity price falls by 6 percentage points below the warehouse cost line, leaving the field without conditions, cutting losses in a timely manner and avoiding the constant widening of small losses
Two tranches of execution: an 18 per cent increase in stock prices, a partial profit-locking sale of half of the warehouse price, a sudden fall-back to avoid movement, and a steady movement of the remaining warehouse, moving the loss upwards to eight points above the cost line, as long as the stock price returns to break the price and the remaining warehouse is cleared。
The rule is simple, and the most difficult thing to do is enforcement. In the three-year drive, i have repeatedly experienced stock prices rebounding immediately after the sale of losses and continued to increase dramatically after the departure, and despite frequent flights, i have insisted that the original standards remain unchanged。
Sold flights only miss a certain amount of profit from a business situation, and long-term transaction stability will increase steadily if the loss is arbitrarily cancelled, the loss is delayed, a loss is out of control, there is a high risk of swallowing all the profits accumulated over the months, long-term standardized transactions appear to have been lost in the short term。
Clear the cognitive error zone: the very simple deal is not to abandon the research, but to remove the inefficiency of the disc
Many readers are prone to misperceptions that a simplified transaction would be free of the need to study the business and buy shares without looking at them, which are fundamentally different。
The core objective of my disposal of the multiplicity of technical indicators is to eliminate the numerous signal conflicts and ineffective analysis links with very low reference value, to concentrate on a limited daily round-up, focusing on three core dimensions of the industry landscape, the overall market heat of the large disk, and a stock valuation area, to streamline the decision-making process and to reduce the operational errors associated with repetitive fixes。
In the past, i used to read the disk against a dozen indicators, which took six or seven hours per day to reset the lines, compared the various data, with trading choices swaying and constantly changing the mindsets on a casual basis; following the change of the three extremely simple guidelines, the daily rewinding was compressed to about an hour, with clear stock thresholds, clear trade points, significantly lower transaction frequency and a direct reduction of losses of more than 70 per cent from ineffective hand exchange。
The real value of the stock market is not so much a fancy high-level trading technology, but a closed and stable trading system, a strict wind-control bottom line, and a low-level execution that is not affected by a rise or fall. Complex methods of warfare are better suited to the hands of specialized agencies, with ordinary shareholders splitting their daily hours of work, with natural disadvantages in information and small amounts of principal money, forcing the development of obscure theories will only increase the anxiety of transactions, and the more thought will become confused。
Three years of real-life awareness: the bulky wants to add value and the trade is much more important than adding
Back-to-back with the 40,000 principals of the three years to make the whole of a million-dollar account, leaving aside the cutting-edge market dividend, the real opening of the income gap between ordinary investors is three simple trading perceptions。
First, there is a proactive reduction in transactions and a marked decrease in the incidence of impropriety。
The more indicators of exposure, the more sophisticated the methods of learning, and the more news is received, the more interference with transactions, the greater the volatility of decision-making. Targeting the three core frameworks of stock selection, warehousing, trading and trading, standardizing the transaction process, removing redundant interference items, and maintaining the long-term insistence that emotional errors will continue to decrease。
Second, wind control is the strongest foundation for compound value added。
A large number of the diasporas are keen to pursue high returns, deliberately neglecting the risk of account withdrawal, and in one case a significant loss often takes five or six profitable transactions to settle back. Strict silos and rigid enforcement to stop losses, to keep the largest withdrawal of accounts within reasonable boundaries and to smooth up the financial curve, are the core foundation upon which ordinary people depend on the stock market for the gradual accumulation of wealth。
Thirdly, the enforcement of transaction rules is far more critical than the rules themselves。
The same three transaction criteria, self-regulated human accounts, were steadily resurgent, and those who changed the rules at random with slight fluctuations repeatedly pursued losses. The gap in the level of transactions lies not in good or bad methods, but rather in the ability to contain greed and to move away from subjective assumptions and apply established trading rules to every real deal。
A shares do not exist in a 100-per-cent non-compensable trading mode, which also sells flights and incurs small losses, but it is a common shareholder with a high error rate, a low threshold for entry, a lack of a professional base of expertise and a two to three days of low-level logic, which can be fine-tuned in combination with its own financial situation and avoids the vast majority of the collective loss trap。
Welcome to the conversation
It is clear from this that there are no shortcuts to the 40,000 million accumulated accounts over the past three years, but the compounding results of ineffective technical analysis, clear trading frameworks, and strict control over the wind bottom lines. The stock market has never been short of deep and luxurious trading theory, and the most scarce is always a simple, viable and long-suspensable exercise programme。
Three questions are thrown out here, and you are welcome to leave real thoughts in the comment area and share them:
Have you lost much of your share, mainly as a result of heavy work, not only as a cover, but also as a result of frequent trading and over-analysis
2. If you leave behind dozens of complex technical indicators, will you be able to steadily implement a very simple set of trading rules over the long term
3. Which do you think has a higher priority in terms of stockholding, account security and short-term booking gains
All these points of view are considered personal investments, shared with real cases around them for discussion and discussion, without any investment proposals. Please do not be blind and self-sufficient. Adults must have their own judgment。
Disclaimer
This is only a collection of personal a stock exchange experiences and general equity trade thinking. The 40,000 principals in the paper are a personal, staged, physical record, and do not represent the general level of return on investment in the a stock market. Securities markets are highly volatile, and there are no permanently stable trading patterns and rules. The options presented in the paper, the allocation of slots, the stop-and-lose setting are thought-sharing only and do not constitute professional investment guidance for the purchase, holding, sale and warehousing of any securities. Readers are requested to make independent investment decisions, taking into account the size of the funds they can invest, the financial situation of their families, their individual risk tolerance, and the experience of many years of trading. Any profit or loss on account of securities transactions, as well as all types of financial derivatives, with reference to the content of this paper, are to be borne independently by the traders themselves, without any civil or economic liability on the author or the publishing platform。
