In the trading circle for more than ten years, I have only seen two kinds of people make money.
One is to hit the big luck in a short period of time and catch a wave of big market to make a counterattack, but there is no such fortune after that.
One is a person who has a set of trading systems with profit advantages, gradually accumulates in the form of compound interest, and realizes a counterattack after many years.
The first type of person makes a fortune by making a fortune, and the second type is by making a profit from the system.
In fact, if you want to make a fortune through trading, you can only do it in these two ways, but it is not so easy to make a profit in these two ways.
If you are an ordinary trader who has little money and wants to counterattack by trading, your path should be to earn the first pot of gold through financial luck first, and then rely on the system to win steadily.
If you are a trader with a little money and want to make more money by trading, then you can't rely on financial luck, you can only make profits through the quantitative system, and accumulate compound interest on the basis of keeping the principal.
I'll break it down.
You don't have much money, the principal is very small, you want to counterattack first and then make it bigger, if you don't double more than 5 times that year, it will not be considered a success, for example, if you invest 2,000, you have to become 10,000 after a year, otherwise it will be a failure, because if you only earn 3,000, it will not change your financial situation and class. But if you want to earn more than five times a year, you can only use a small Bo Da, with four or two thousand pounds, either you catch a wave of the big trend market, a wave of more than 5 times, or you use leverage, heavy positions and small stop loss to come, your winning rate is quite good, the profit and loss ratio is also large, you can also achieve rapid growth.
But this approach also means that the risk is very high, because the return is directly proportional to the risk, and you may also be cleared or liquidated frequently.
But when you have a small amount of money, you have no choice, you can only gamble, even if you are aggressive, because you are already poor, and it is like that when you lose. I used to work in the factory, I didn't have much money, I took two or three thousand yuan a month to Bo, and if I was wrong, I would blow up, and I would pay my salary next month, but I liked to operate heavy positions, and I also made a profit to increase my position to do, so I always liquidated every month, but it didn't affect my life much, and I have been poor and stable. But I suddenly hit a big luck in a certain month, and there was a wave of anti-sky market, and I ate from beginning to end, and it doubled almost 20 times at once, and the small account became a big account. Then I went ashore, and I changed the way I traded, and pursued a sound quantitative trade.
So many people are reading my article now and telling me, Lao Zhao, I recognize your trading methods and methods, and I know that I can make money by doing that, but I can't do it like you, because my capital is small, and I can only choose to operate in a more radical way. When I get bigger one day, I'll use your current method to operate.
Yes, it's about being self-aware, being well aware of where you are, and then choosing the way that works for you. In fact, I am afraid that I have no self-knowledge, and blindly apply methods, even if some methods can make money, but they are not suitable for my own stage.
You look at those sanctimonious bigwigs and successful people, they do things steadily, but what you don't know is that their first pot of gold is more or less clean or not accumulated in small amounts. They relied on a certain amount of courage to take risks and make a big profit, and then they changed to a safe way and switched from offense to defense.
The same is true in the trading circle, Buffett's first pot of gold also relied on grabbing those waves of money-picking market, and then aggressive heavy position operations, accumulated the first pot of gold, became famous in a fight, made fame, and then financing operations, and then changed to the way of value investment, that is, relying on the system to make slow money.
If you have more principal, you can't operate in a rash way, and you can't expect to hit the big luck and make a bigger wave. Because you can't afford to lose, once you lose once, maybe the wealth you have accumulated with great difficulty before will be wiped out.
I only have 10,000 yuan, you give me a way to make money, 20% of the profit a month, and I won't do it if you ask me to do it.
I have a million, give me a way to make money, only 20% a year, I am willing to do it.
When the amount of money is small, although you also take risks and operate aggressively, you have no financial luck and cannot become big, you can only accept your fate, because you lack financial luck, you are an outcast of God.
But if you are favored by God and give you fortune once or twice, and you accidentally become big all of a sudden, but you swell, you don't know how to go ashore, and you want to be bigger, then your end is to be beaten back to your original shape.
Therefore, you must know how to be moderate, make the first pot of gold, change to a system that makes slow money, use big money to make small money, and you will live a very nourishing life.
So now there are several types of people in the financial markets:
One is that there is no technology and no financial luck, and there are the most such people, basically leeks.
One is that there is technology and no financial luck, and there is no way to achieve a counterattack if you don't encounter that kind of big market against the sky, this is fate.
One is that there is technology and financial luck to seize the profit against the sky but did not keep it, but it is also a roller coaster, or can not go ashore, such a trader is a pity.
The last category is people who have the technology, wealth and luck to keep it, they are quantitative traders, who make money by system compound interest, and they are also the winners of this market.
Friends in front of the screen, what stage are you in now? Let's hear it.
Share here today, I am Zhao Huagang, a trader who loves to share, remember to give a small like at any time if you like me to share, if you have any questions, you can leave a private message in the headlines, I see that I must return, it is not easy to trade, and I cherish it and encourage you.
Author: Zhao Huagang