When we watched war movies when we were young, we always found that the protagonists led troops to fight and were invincible. Occasionally there was a big defeat, but they were always able to turn danger into safety, turn danger into luck, and even successfully counterattacked and turned defeat into victory in the end. Later, the editor thought about it and found that these generals would actually attack the place where they had the most hope of turning defeat into victory, especially when they were at a disadvantage. Of course, we must do the same when doing transactions in order to establish an advantage in the market.
"Bet on the most promising transaction!", the famous fund manager Crowe said in his investment strategy.
To some extent, doing silver trading is very similar to gambling. You only enter when the probability of winning is high, and the hope of winning is great. Random operations without choosing the right time will inevitably lead to failure.
In fact, no matter what kind of trading philosophy and method you adopt, whether you trade with the trend or trade against the market, the results are all achieved through "anticipation and forecasting". You expect the market outlook to rise, so you buy; fall, so sell.
The question is, under what circumstances will your "anticipation or prediction" be easily achieved? :
First, your operations must be planned.
An important reason why many people fail to invest is that there is no plan, and the operation of buying and selling is too random, which is an emotional impulse. Your plan should be as detailed as you can, including the conditions for buying, the allocation of funds, the position of stop loss after misreading, changes in the market outlook, and so on. With a plan, you will be confident, take it calmly, and stay calm in times of crisis.
Secondly, you must have your own set of trading rules or systems. The core of its design is "bet on the most promising place!"
Where exactly is the best place to bet on? "Trading with the trend" is a principle that cannot be violated. Obviously, the general trend of the market is rising. The only thing you can do is to buy up or do nothing. You must not sell short. And if the main trend is falling, you only need to go short with the trend, and you cannot buy up.
However, there are also quite a few people who make a profit by shorting out when the market is rising or buying when it is falling. How can this be explained?
Remember: this kind of profit is just temporary luck, without "consistency and stability". If you want to make profits by long-term contrarian trading, it is impossible in terms of probability.
Again, you have to be patient. The market is not favorable to you every day, you need to wait patiently for opportunities that are favorable to you to appear before you can do it. In short, if you measure how big your "success rate of this hand" is before each bet, one day you will grasp the chance of winning!