Dan Chenjin: Detailed explanation of a risk control trading plan, everyone can refer to it

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Dan Chenjin: Detailed explanation of a risk control trading plan, everyone can refer to it


Many times we often see many people talking about "risk control", and many people also know about risk control. When placing orders, they occasionally include stop loss to control their positions, but there are still many positions that have been liquidated and suffered significant losses. This is why although we have heard a lot about risk control, we still cannot trade well. Risk control is like fire prevention knowledge that everyone knows, like the constantly promoted anti fraud and anti fraud promotional videos that can be seen everywhere. However, many times people only realize the importance of prevention after encountering a fire and being deceived again. When speculating in the market, if one move is not careful, you will lose everything. When the market exceeds expectations, you may have won nine times without a stop loss, but as long as the goddess of luck is not on your side once, you can lose everything and only cry and faint in the bathroom.


Below, Teacher Dan Chenjin provides a risk control trading plan. The numbers are relatively dull, and investment friends who have been taught mathematics by physical education teachers can take out a pen and paper to make an outline, which will look more eye-catching.

Assuming there is one now10Our goal is to achieve a 10000 yuan account with a short position status20Over 10000 yuan(Double)Firstly, divide the funds in this account into10Each part is called a trading unit, which means that investment must be made in each trading unit10000Yuan. Then, we will proceed through5One step to complete from10Wanzhi20Wan's operation. At each step, the stop loss amount is the total amount invested at the time of that step10%If it exceeds10%Unconditional stop loss. this10%Whether it includes transaction fees depends on personal preference, and my personal suggestion is to include them.


Here are the specific steps:


Section1Step: Step1Step by step operation only involves two trading units - approximately20000Yuan. The total funds invested at this time are20000Yuan, with a holding ratio of20000/100000＝20%. Because the reservation is based on the invested funds10%Stop loss, so the maximum stop loss amount is2000Yuan, when the loss exceeds2000Unconditional stop loss. At this point, the proportion of the stop loss amount to the total assets is2000/100000＝2%. Be careful and do this well20000Yuan's order, when the profit reaches50%That means I earned it10000After the Yuan Dynasty, the total funds reached110000You can proceed to the next step.


If this step of the operation is not smooth, the final stop loss and exit, there are still remaining9With a backing of over ten thousand yuan, two trading units can be used to re-enter the market. If there are consecutive losses, the funds can reach9Under 10000 yuan, only one unit can be used for trading until the funds are restored10Ten thousand yuan will be traded in two more units. If a unit cannot make a profit, it will lose more with more funds.


Section2Step: In the1When we have already made a profit, we will start to increase our investment. Now three new trading units have been invested, and the total amount of funds invested in trading at this time is30000Yuan, with a holding ratio of30000/110000＝28%. The maximum stop loss amount is3000The proportion of total assets is3000/110000＝3%. If the loss exceeds this value, the unconditional stop loss will still apply. Attention, the1We have already made a profit10000Yuan, as long as strict stop loss is implemented, the original capital will hardly be damaged. When this operation is profitable again50%，15000Yuan, which means the total funds have reached125000At this time, you can enter the3Step by step.


It should be emphasized here that if2During the operation, a stop loss exit occurred, causing the total assets to fall back to the th position1At the end of the step110000The following must be returned1Step by step, only invest in two trading units until the total assets return110000Above, please redo the process2Step by step.


Section3Step: If2The steps went smoothly. Now we will continue to increase our investment and add another trading unit. The total amount of funds invested has reached40000Yuan, holding ratio40000/125000=28%. The maximum stop loss amount is4000The proportion of total assets is4000/125000＝3%. Attention, in the2We made a profit in the process15000After completing the first two steps, the total profit has already reached25000As long as strict stop loss is implemented, this4000The loss will not have any impact on the original capital. When this operation is profitable again50%, i.e20000That is to say, the total capital has reached145000At this time, you can enter the4Step by step.


Section4Step: If3The steps went smoothly. Now we will continue to increase our investment and add two more trading units. The total amount of funds invested has reached60000Yuan, holding ratio60000/145000=38%. The maximum stop loss amount is6000The proportion of total assets is6000/145000＝4%. Attention, in the3We made a profit in the process20000And before3After completing the steps, the total profit has reached45000As long as strict stop loss is implemented, this6000The loss will not have any impact on the original capital. When this operation is profitable again50%, i.e30000That is to say, the total capital has reached175000At this time, you can enter the5Step by step.


Section5Step: If4The steps went smoothly. Now we will continue to increase our investment and add two more trading units. The total amount of funds invested has reached80000Yuan, holding ratio80000/175000=55%. The maximum stop loss amount is8000The proportion of total assets is8000/175000＝5%. Attention, in the4We made a profit in the process30000And before3After completing the steps, the total profit has reached75000As long as strict stop loss is implemented, this8000The loss will not have any impact on the original capital. When this operation is profitable again50%, i.e40000That is to say, the total capital has reached215000Congratulations, you have achieved your goal after going through countless hardships.


It's like completing a game and reaching the endbossIt's not easy, we have to come up with it in the end15000Rewarding oneself, ladies go shopping for beauty treatments, men wash their feet and soak in a sauna, giving back to such a great self. Countless days and nights, the heart beats with the ups and downs of the market and the dark circles under the eyes. After adjustment, use20Ten thousand yuan to start a new journey.


Of course, the trading method in this article is based on the premise that everyone has a certain level of independent analytical thinking, has a basic understanding of technical analysis, and has their own opinions on the rise and fall of the market. With good technical analysis and such rigorous risk control, under their own scientific trading system, it is the true combination of two swords, invincible in the world. If investors who patiently read this blog post can discover that the core of this method is a part of risk control - fund management, which is to preserve the principal and use profits to gain greater profits10%The rapid doubling of accounts within the risk range is much more difficult to implement than everyone can understand and comprehend. Many human weaknesses make it difficult for many people to strictly follow this trading method. Overcoming human weaknesses is the most difficult. True success is not about being better than others, but about being better than oneself in the past, overcoming one's weaknesses, and optimizing oneself. If trading strictly according to the above plan, it will definitely have an effect over a period of time. As for the effect, the key lies in another investment skill - technical analysis.

There is no secret to investment, only through hard work and the right methods can we receive some joy from life. Success is so difficult, no matter what industry, investment is the same. Knowing the rules only gives us a correct direction. Here, we advise some investors to invest with the minimum cost and expense, not to borrow money or use their important savings to "gamble". They should be able to bear the consequences of losing all their principal. Otherwise, it means that their "risk control" in life is not done well. We are more rational because we have experienced pain, and we are more mature because of our rationality. Otherwise, we would be sorry for the hardships we have endured.


Author of this article: Shan Chenjin


Author's message: The purest financial management, the highest level of enjoyment!


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The above content is for reference only. Investment carries risks and caution is required when entering the market.