Losing and winning is a betting strategy, and following the trend is a betting strategy.
If you want to win for a long time, you must lose and win, and you must do both. Since each hand has a 50% chance, that is to say, the odds of losing and winning are the same, so if you place small bets when you lose, and large bets when you win (with profits to rush), you can lose less and win more.
Then take advantage of the situation, said the popular point is to bet along the way, resolutely not reverse the way! Why ride the wave? Although the trend and the reverse trend hit rate is the same (the number of wins and losses are about the same), are about 50%, but the reverse trend (reverse road) is easy to impulse, once encountered losing, it will be bigger and bigger, resulting in losing a lot of money, easy to make the mentality bad;
And if you follow the trend (along the way to bet), follow the road, the state of mind will be very calm, once you encounter a long jump and other good road, coupled with win and win, you will win big money!
Even if you encounter a bad road and suffer a losing streak, your mentality will not be affected too much, you will not bet big, and you will lose small money. Therefore, only if we really do \"lose and win\" for a long time, can we win money for a long time.
Taking advantage of the trend shows that looking at the general trend, if the general trend is accurate, it is also feasible to lose.
First: The primary theme of winning contraction should be risk control. Most losers are asking \"What did I do wrong?\" In fact, he did nothing right.
Second: Only the market can tell us which position is true. We cannot have any illusions about our position until the profit and loss results come in, and until the market proves our position correct, we assume that it is wrong and must be continually reduced or even eliminated.
Winning and losing is an accurate summary of the core principles of fund management, which is the central idea of all fund management systems. The \"Ghost of Wall Street\" said two rules in the interview:
First, only hold the correct position, and second, increase the size of the correct position, which is the meaning of \"win and lose\". Winning and losing is not simply referring to the profit of the position, the loss of the position is so simple, although this is its important content.
The essence of the idea is to control the account risk within a fixed range, while the profit expectations as large as possible, note that I am talking about the expected profit, adding positions does not guarantee that you can really get a windfall profit. That is to say, when we lose, we should try to lose as little as possible, when we win, we should try to profit, when we are afraid, when we are greedy, when we are greedy. I will summarize the \"ghost of Wall Street\" statement for your reference.
In fact, \"lose shrink win rush\" is a simplification of \"prospect theory\" in futures operation to avoid human weakness.
Prospect theory has three characteristics: First, most people are risk averse when facing acquisition; Second, most people are risk-averse when facing losses; Third, people are more sensitive to losses than gains.
People are sensitive to loss and gain differently, and the pain experienced in loss is much greater than the happiness experienced in gain.
Most people will \"lose and win and lose\
Most people are not patient enough to wait for the price to break along the direction of least resistance, so it gives you the advantage of surviving on patience.
First of all, consider how to lose, to truly understand that in the trading market, profit is unexpected, loss is the norm.