Wen Juexi: Gold skyrockets, plummets, long short sweeps, don't let your trading turn into gambling, this is taboo!

Believe in everythinggoods in stockgoldPeople who trade in the market have heard these two sentences: "Go with the flow" and "Judging right from wrong is not important, what matters is how much money you can earn when you judge correctly, and how much money you will lose when you judge incorrectly

I think these two sentences basically cover all aspects of the transaction and complement each other. On the surface, it doesn't seem difficult to understand these two sentences. However, Fu Changjiang believes that many people may have misunderstood the profound meaning of these two sentences.


【 Condom Tip 】 - Multiple Condoms


Partners who hold long positions in their hands definitely don't want to leave because they can't bear to part with it. If they cut, they are afraid of rising, and if they don't cut, they are afraid of continuing to fall. I always tell myself countless times in my heart that it's going to rise, but you've already been influenced by fluctuating profits and losses, and are starting to lose yourself. Persisting in taking on orders will only result in missing out on more profits.

But the market is here, so we have to plan ahead with an expectation in mind, with a key stop loss below, and do a good job of risk planning. Don't take any chances anymore, no matter how many points you set, you can solve it reasonably. Choose the appropriate point to enter the market and make up for the loss, turning passivity into initiative.


What does it mean to follow the trend?


The market is inherently bullish and bearish, so I define this' trend 'as an idealistic idea. It is based on your own judgment of potential. Of course, this has nothing to do with whether the market situation you were in at the time was declining or rising. I don't think I need to explain this too much, do I? Every trader should know that there will be a pullback in an uptrend and a rebound in a downtrend. Of course, there are also differences in the magnitude of periodicity in the division of potential.

Since we are following the trend, I believe we should view this statement from the perspective of a trend investor, soTeacher Wen JuexiI think that for our common short-term traders, perhaps the only remaining meaning of this sentence is to chase after the rise and kill the fall. Simple and intuitive, if the market trend is developing smoothly in the direction you have judged, you can take advantage of it and increase your position until you reach your expected target position.


So how can one make a lot of money when making the right judgment and lose very little when making the wrong judgment?


I think that basically every trader who has made a judgment on the trend will have a critical point in their heart, and whether or not this point breaks directly determines their judgment of the trend. So, if the trend judged at a certain point is indeed as expected, the market will operate for a considerable period of time and experience significant increases or decreases. Investors can earn substantial returns. However, the mistake we often make is to add positions too early, and to buy more and sell more when the market does not appear as expected, and ultimately be forced to stop losses at key points. Heavy losses! In this situation, investors' physical and mental health will be greatly affected. They will think that the risks of doing trend trading are really high. In fact, these people have not realized their own operational problems.Teacher Wen JuexiI believe that judging right from wrong is secondary, and operational issues are the fundamental core factor.

This question is confirmed by the phrase 'following the trend' mentioned above. Due to the fact that we cannot open our position at the highest or lowest point, most of the time our orders will have a stop loss of either large or small distance from the key point. At this point, investors should have a psychological expectation of the potential stop loss risk that may occur when they make a judgment error. Based on this expectation, choose a suitable location or open a warehouse accordingly. And the psychological expectation of this stop loss risk is also based on a major prerequisite, which is that if you are stopped, you still have capital to wait for the next opportunity. Seemingly simple, many people cannot pass this emotional hurdle. Often, once the market experiences repeated fluctuations, losing patience can lead to a gambler mentality. This is very common! Remember, always keep this issue in mind. We all know that once a trend is formed, prices will fluctuate for a long time and significantly. So, this is also one of the factors that can easily foster a gambling mentality among investors. Because at this time, investors often think only about making money and not about losing money.


So, when facing key points, choosing the appropriate price or position to open a warehouse is an important issue. The purpose of opening a position like this is to minimize losses when you make a judgment error. Once the position is opened, if the trend develops smoothly according to your judgment and expectations, you can take advantage of the situation to increase the position. The purpose is to make you earn a lot when you make the right judgment. Be careful, it must be when the trend is moving smoothly according to the direction of development you have judged. However, the seemingly simple truth is that most of us repeatedly make mistakes. Often, investors increase their positions too early and hastily, and once they encounter fluctuations and lose patience, they will sell more and buy more as they rise and fall. If they make a wrong judgment, the losses will be huge, not to mention whether there is still a chance to turn things around. At this time, the physical and mental devastation suffered by investors is enough to make them leave the market forever.

In the process of taking advantage of the situation to increase positions, I believe that two principles must be followed: first, the position should meet the requirements, such as breaking through important support or resistance to form a more deterministic form, and at the same time, the position should already have a significant return, and the stop loss of the position should be set near the important key support or resistance of the break. Secondly, the added warehouse receipts must not exceed the original ones.


So, if you trade according to the above pattern, regardless of your judgment of the probability of right or wrong. However, the route you take will be to earn a lot when your judgment is correct, and to have a small stop loss when your judgment is wrong.


Juexi's message:

Every successful person in the market must have emerged from failure,Successful individuals can feel the various pains they experienced before achieving success,Because this is a transformation! But failures may not necessarily have experienced success,Many people pursue doubling,But in the end, due to various reasons, the ship capsized.today,What you see is the truth,Take the last train to double,Let's stand to the end!


Author of this article: Wen Juexi [reprinted, please indicate source]
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Author's message: Ten years of golden road, accompany you all the way!

Full guidance time: early6：00In the early morning of the next day2：00