How did I change 500000 yuan into 7800 yuan?

Guide:

Most of the time, we can see ourselves in others. Similarly, other people's stock speculation techniques are more or less similar to their own. I would like to ask, have you ever calmed down to reflect on your operation strategy after your loss exceeded a certain amount? I hope other people's stories can bring us some thinking.

I think I'm not stupid, but I'm not smart either. At the beginning of 2007, I began to speculate in stocks under the influence of friends. I still remember that it was Yue Expressway in the morning of January 15, 2007 when I bought the first stock. It has been nine years since the beginning and the end.

Let's talk about my learning process first.

1. Analysis of learning techniques.

Like other retail investors, they began to read some introductory books on stocks and learn stock speculation skills. Understand basic software operations, commonly used indicators, and so on. At first, when I looked at both basic analysis and technical analysis, over time, I felt that I was not interested in basic analysis, and I seemed to see it in the book-basic analysis always felt wrong in the Chinese stock market. Because I don't think the fundamentals of stocks can change in a month or two, or even a week or two, or even a day or two, but prices always fluctuate like this.

So, I finally chose the road of technical analysis. I also read some theories and biographies of basic analysis, but later I forced myself not to touch basic analysis in order to devote all my energy to technical analysis.

The process of learning technical analysis is the same as most people, but they spend more time and energy than the vast majority of shareholders. At that time, I often learned until 11: 00 or 12: 00 at night and sometimes at 2: 00 or 3: 00 in the morning.

The biggest headache in learning technical analysis is testing. Every time you learn something new, you always think you have found a way to win, and then you will sell the original stock and buy a new one according to the new method. As a result, I bought a stock and often lost it the next day. What a hell. Keep learning, continue to buy and sell, continue to exchange shares, losses continue to increase. The rate of loss caused by excessive trading is really astonishing.

If you keep learning the theories of indicators, shapes, tangents, K-lines, Gann, waves, chips, Chuang Chuang and so on, you will continue to lose money. In the process of learning technical analysis, always want to find a way to win. I don't remember how many methods I've tried. I don't think there are a hundred or so.

I remember learning Bollinger belt indicators once, and I was particularly impressed. At that time, I found that stocks that closed with Bollinger belt tended to rise sharply. It was only discovered after trying many other methods. As a result, after buying it once or twice in front, it did rise sharply, but more often it either plummeted or did not move sideways. As for the reason, who knows, I didn't understand it anyway.

2. Learn the trading system

Learning technical analysis makes me feel that there seems to be an unknown law behind stock price fluctuations. Gann, waves, tangents and K-lines are all just appearances. What is the real internal law? I have no idea.

However, it doesn't matter if you don't know the inherent law, making money is the fundamental purpose of stock speculation. So I started to set up my own trading system. How many kinds of trading systems have been learned? I don't know. There are dozens of them, some of which are directly translated into English. I remember that there is a trading strategy called gimmiebar, when I translated it, I was very excited, and sometimes it did have some effect, but more often it was ineffective. All kinds of strange stop-loss methods have been learned no less than 20 before and after, but they are not of any use.

Fortunately, the more technical analysis knowledge you have learned, the easier it is to establish a trading system. In my opinion, the trading system is a combination of a variety of technical analysis modules. A module for trend judgment, a module for stock selection, a module for trading strategy, and a module for psychological control. Each module contains a number of sub-modules. At the end of September 2009, my first trading system finally took shape, in which the trend judgment module has been used ever since.

2 years and 9 months, I guess the time should be fast. But if you think I'm starting to make money, you're making a big mistake. Or continue to lose money, always lose money. The reason for the loss is the pursuit of profiteering on the one hand and the pursuit of certainty on the other.

3. Thinking about the philosophy of transaction

After the establishment of the trading system, I will begin to think about some philosophical issues of trading. As a result, all the major schools of philosophy in the West had a general understanding of it, and in the end they even read the Bible. Many Chinese investors like to read Buddhist sutras, but I have been learning Western stock trading techniques, so I am more inclined to the Bible. But I didn't see it for nothing. In the end, neither philosophy nor the Bible is of any use. If it is necessary to say that it is of any use, it is to solve your own thinking barrier temporarily.

Now tell me how I fried 500000 yuan to 7800 yuan.

I divide the technical analysis investors into two categories, one is the system transaction type, the other is the fresh type. Investors in the category of system trading must learn from others and dabble in almost all technical analysis theories, then extract a very small part from various theories for their own use, and then combine them into a trading system to integrate various theories, so, system trading investors often lose a lot of money, because they have to test and test constantly, and excessive trading is inevitable. But in my understanding, once we really achieve integration and success, there will be no disadvantage, and its profit rate will be as fast as the previous losses. And a move of fresh investors, it is very easy to learn, just learn one or two moves, so the number of tests is very small, the loss is also very small, but the profit speed will also be very slow. Of course, this is just my imagination, and I don't know if it's right.

Perhaps it is the pursuit of profiteering psychology in trouble, or perhaps because of personality reasons, they always want to become a master, always want to reap exorbitant profits. So the loss is staggering. Excessive trading is really scary. Since I started investing in stocks, I have invested a total of 500000 yuan one after another, and at the lowest point, I lost only 7800 yuan, which added money one after another. Sometimes even when I think about it, I think it's incredible. How can I lose so much? Learn from the bitter experience, summed up the following reasons.

One of the reasons for failure-impatience

After opening an account at that time, I asked the manager of the securities company who opened the account for me to buy the stock on the spot. At that time, as soon as I saw the stock go up a little bit, I couldn't wait to buy it, as if I would miss a windfall. Now come to think of it, this mentality has been with me for so many years, and it is also the main reason why I continue to lose money-impatience.

The second reason for failure-- the pursuit of exorbitant profits

Like most investors, I always want to go up the limit when I buy it. Now think about it, nine years of stock speculation, I have been holding this idea in the stock market.

The pursuit of profiteering is another important reason for one's own losses. At that time, there were warrants, whose rise and fall limit would be about three times larger than the stock itself, generally about 30%, and TFT 0. I remember one time, I bought a stock warrant, watching the warrant price fall faster and faster, all the way down to the limit board. At the end of the day, I was so nervous that my clothes were soaked with sweat. Although the experience of sudden losses is so painful, it still can not change the mentality of pursuing exorbitant profits.

The third reason for failure-- excessive trading

This is really an extremely painful lesson. Excessive trading, whether to test technology or for psychological reasons, can be fatal. There is another problem here, that is, stop loss. In a bull market, it is best not to stop losses. But I started from the stock market, has been learning the theory of foreigners stock speculation, strict implementation of stop-loss, excessive trading plus strict stop-loss, the speed of loss is even more amazing. I feel heartache when I talk about it. Speechless.

It is precisely because of overtrading and continuous stop-loss that the whole bull market has ended since the beginning of 2007, and I can remember that I have never made any money, except once. That time is after 530, bought a coal stock, seems to be Orchid Science Chuang, at that time used the relative intensity index (RS, not RSI), after the selection, forced himself not to move, held it for more than a month, and finally made a profit of about 35%. Besides, it seems that there is really no impression of making money, not anymore.

There were several things that impressed me very much, one of which was the day before I used the DMI index to accurately judge the sharp fall of 530. on another occasion, I selected a stock chlor-alkali chemical industry, which rose slightly the next day, but sold it on the same day. At that time, it seemed that the market was unstable, and on the third day chlor-alkali chemical industry began to pull three trading limits in a row. It's depressing.

And with regard to stop loss, I have been very strict with stop loss. As a result, after the creation of Orchid Science, I changed my mind a little bit. I felt that I should not stop my loss casually. As a result, I have been carrying it since 6124. As far as I can remember, it seemed to be the only time I had more than a loss, and it ended up from the highest point to the eve of 1664. During this period of time, because I was trapped less and less money, I didn't even dare to look at the stock account. I really didn't dare to look at it. During this period, I did not study stocks for nearly a year and played mahjong every day. Therefore, the actual time to set up the first trading system is about one year and nine months.

On the eve of 1664, I did not relearn stocks until the last two days when the index rose to the limit. But again, continue to study and test and continue to lose money. That's what happened. As long as I invested in stocks, I lost money all the time. I didn't make money from 6124 at the beginning of 2007, and I didn't make any money from 1664 to 3478. After setting up the trading system, I have counted my own historical trading records, probably buying or selling an average of less than 1.5 days. It's horrible! At that time, the service fee was much more expensive than it is now.

The fourth reason for failure-- the pursuit of certainty

Among the many philosophical issues of trading, the debate between uncertainty and certainty is the biggest problem. This is also the main reason why I continued to lose money in the later period, which has little to do with the pursuit of profiteering.

The essence of the stock market is a chaotic system, uncertainty is the inherent characteristic of chaotic system, but I just want to find a kind of certainty. For me, certainty means that after buying it, it must rise, or even soar. I don't know if this certainty exists, but I've been looking for it. I've always thought that rising stocks and rising stocks have inherent rules in common, but we just don't know it. If we can find such an inherent law, wouldn't it be a fortune? As a result, we have to keep studying and testing.

I have looked back on my stock trading experience countless times. In fact, if my heart is not too greedy and does not pursue exorbitant profits, then I can continue to make a steady profit since October 2009. Although the profit rate will not be too fast, it will not be very slow. Because the initial stock selection module has some preliminary factors with exorbitant profits.

At that time, I stubbornly believed that the reason why stock speculation was affected by emotional factors was due to the lack of technology, and once the technology arrived home, emotion was a very secondary factor for profit.

It is precisely because of this concept that I always want to find a certainty, a certainty that goes up as soon as it is bought, or even soars as soon as it is bought. Earlier this year, I summed up my trading behavior and wanted to analyze why I lost so much money. The conclusion is that his trading behavior pattern has several characteristics: full position, full position from beginning to end; centralized shareholding, placing all funds on one stock at a time; pursuing exorbitant profits, hoping to rise or even limit on the same day or the next morning, otherwise you can't help but change shares the next afternoon.

This is also my recent experience, the trading system is the key to stock speculation, but if it can not match their own trading behavior patterns, no matter how good the trading system is useless.

Incidentally, all the specific technologies I mentioned earlier have been proved countless times afterwards that these technologies or indicators only work occasionally and do not work most of the time. As for when it will work and when it won't, I don't know. Anyway, all these techniques and indicators above are not used by me now.

The fifth reason for failure-- investing in stocks for others

There is another ridiculous thing to say here. After the completion of the trading system in October 2009, I have been working in and out for about a year. Among the four modules of the system, the trend judgment module has been relatively accurate, that is, to achieve the general certainty that I have been pursuing. But the certainty of a module is still useless for the whole system. This also leads to a fatal problem-always wanting to achieve the same certainty in other modules, especially the stock selection module.

It is precisely because I feel a little level, in fact, it is not bullshit, I actually took the initiative to help friends speculate in the stock market. Now come to think of it, the latter problem has not been solved, in fact, we can achieve sustained and stable profits, but the whole market is in a bear market, loss is inevitable. In the end, even my friend lost a lot of money. Of course, I bear the loss of money, which is also counted in the total loss of 500000.

Now think about it, to help others speculate in the stock market, even if they make a small profit, if they are really good at it, they should have the courage to sell their houses, borrow money, or even borrow usury. Do they need to make a small change for others to invest in the stock market? If you don't have the guts, it will prove that you don't have the level and strength.

A man once said to me that this man is a Sunshine Private Placement and crazy, but what he said was still very shocking to me: if you are not 100% sure how to go in the future, what is the use? Stop loss? Bullshit. Later, I thought about it, whether it is institutional or private equity, billions or even tens of billions of funds, how to stop the loss? We must be 100% sure of what the future will be like. Since then, I have been taking this as my goal, although I don't know if I can achieve it.

The sixth reason for failure-eager to invest in stocks for nine years, the biggest feeling is that if the mentality is not good, no matter how good technology, no matter how good trading system can not make money, will only lose money. Sometimes I think that I have learned a lot of skills and have a trading system, so why do I keep losing money? Even the bull market can not make money, the root cause is the mentality problem. Being eager to write a book is a very fatal psychological problem.

Whether it is the overall loss in a hurry to cash in, or after one or two trades to make money, and then spit back eager to cash in, are very fatal. As soon as they are in a hurry, people mess around, and they have bad habits such as excessive trading, heavy positions, chasing after rising, killing and falling, and so on. What the hell, the more anxious, the more chaotic, the more chaotic, the more loss, the more urgent. It is not easy to earn 10% in front, ah, 20, ah, once you are in a hurry to make a mess, you don't have to do much, as long as you do it two or three times, you will return to your original form.

I have roughly counted that the general stock volatility of 3% a day is the smallest, 5% volatility is normal, and 7-8% is common, not to mention 20% a day. After people are in a hurry, they often sell at the lowest point and at the highest point, which is really damned. According to normal calculation, a fluctuation of 5% a day, impatience after three consecutive screwing around, plus fees and so on, vomiting will be nearly 20%. If you catch up and hit the limit, you will definitely throw up more than 30% three times, which is equivalent to the return of all the money earned in the previous month. This really sucks.

How to overcome the eagerness to get rid of the psychology, I can not think of any good way, there is not necessarily a good way, I keep adding money to it when I lose money. For example, if I lost 50% of 20, 000 yuan, then I will add 10, 000, and only 50% will return the capital. If you add 20, 000, only 33% of the capital will be returned. If 90, 000 will be added, won't it be returned to the capital after a rise in the limit? The problem is that if you can't make money, the more you add, the more you lose. What should I do? It's the same old problem, raising the level and striving for a sustained and stable profit.

I heard that the master can surpass the bull market, and I can also surpass the bull market, but others continue to make money beyond the bull bear, while I continue to lose money beyond the bull bear, but the money lost in the bull market can soon be pulled back and continue to lose money. After a loss in the bear market, add money and then lose money.

The sixth reason for failure-jealousy of others

One of the most important reasons for persistent losses is that they are eager to make money. In a bull market, they are jealous of others to make money but do not make money on their own.

In a bull market, it really doesn't feel good to hear how much people have earned. Even if they don't lose money, they still feel that they have lost a lot of money. Naturally, I always think about profiteering. How can profiteering be so easy? Those who continue to rise by the limit are waiting for us to come, and we do not have any inside information, so it is not so easy to encounter the continuous limit. Therefore, it is best not to talk to others about stocks. In my impression, talking to others about stocks, as soon as you talk about it, how much did you earn and how much did that increase several times? can you not worry about it? In fact, when other people lose money, they just don't say anything.

Take this bull market, for example, there are relatives and friends around you who are also investing in stocks. Today we talk about the limit, and tomorrow we talk about how much money we made, and how much we bought Apple Inc 6PLUS and so on. As a result, during this period of time, there was no one talking about stocks.

However, this time I learned a little bit. When I told others, I said that I would not speculate in stocks. In this way, it will save others from showing off in front of themselves, and they will be less affected. No matter whether others recommend stocks or say the trend of the market, they don't listen at all and only trust their own judgment. Whether it is right or wrong, the profits and losses are their own. If you listen to others, who is to blame? Of course, I am embarrassed to blame others, but I always feel that it is not the taste. The best way to avoid being influenced by others is to stop investing in the stock market. You earn your money, but I just don't do it. This is my experience.

The seventh reason for failure-- countertrend trading

In fact, the most direct reason for losing money in stocks is trading against the trend. If you go with the trend, you can always make some money more or less, and even if you trade too much, you will only earn less. But against the trend of trading, it is bound to lose money, if coupled with excessive trading, it is bound to be a huge loss.

Countless times of practice has proved that when the market falls, there are very few stocks that rise against the trend, and a very small number of very strong stocks can rise to more than 20% against the trend. Even if such stocks are caught, the actual profit can hardly exceed 10%. In the already small number of stocks rising against the trend, most of them can rise to 15% even if it is good, the actual profit is also very difficult to exceed 8%. Why are you fighting for such a small change?

And it is normal for most stocks to fall by 10% in two days, because it is normal for the index to fall by 5% in two days, sometimes by 5% in one day, and a considerable number of stocks fall by more than 15% in two days. Don't you take the initiative to send money in countertrend trading?

Besides, do you have the ability to pick stocks that go against the trend? It's hard. Do you have the ability to pick stocks that are up more than 20% against the trend? It's almost impossible. That's not a gift. What is it?

Two days ago, I saw a post saying that whether shareholders can make money or not ultimately depends not on technology, but on their own characteristics. Am I the one who is destined to lose money in the stock market all the time?

The eighth reason for failure-- overconfidence

It's a long time, but it also seems to pass quickly. Unwittingly, it has been eight years since the progress of the stock market in May last year, when a new bull market quietly arrived. I felt early that the bull market was coming, but I really didn't want it to come so soon, because at this time my problem was still unsolved, even though I had a direction and an outlook.

From the start of the bull market in May last year to the beginning of this year, I was still trying and making mistakes as before. It is impossible to make money, but there is nothing to lose. After all, it is a bull market, and a little loss will come back. At the beginning of this year, it seems that luck suddenly came, making a profit of 200% in just one month, basically dominated by ultra-short-term trading, that is, buying today and selling tomorrow. Looking back, I was still confused, and the money was inexplicable, because I knew that although the stock selection problem was drawing to a close, it had not been fundamentally solved, so up to now, I did not understand how the money was made. I think there must be some technical basis at that time, and it is that these technical bases are the technical basis of the trading system that I finally finalized. Although it has only been a few months, I have no recollection of these technical bases at all. Because the imprint was washed away by the later final technology.

Although this profit is negligible because the principal is too small, the profit process still gives me a lot of confidence. After a period of time, I began to add funds, because I was a little cautious in trading because of the additional funds. I made a profit of 60% a month, but I don't know why. But because the time is closer and the technology is closer to the final technology, I already have some impression. I probably know what technical principle it may be based on.

However, at this time, I was full of confidence, I arrogantly thought that I had embarked on the road of making a fortune, and did not realize that a crisis was coming quietly. A reincarnation is not over yet. It is impossible to make money.

Now, we have to start all over again. I don't know if I can embark on a sustainable, stable and fast profitable road, but I want to say to myself that I am almost ready and it is time to go.

Share with you, in the hope that you can find your own shadow here, if there is no change, it will be encouraged. And the advice to this friend is to communicate with the master more and learn the correct operation ideas and ideas from others, rather than work behind closed doors and rest on their laurels.

To be alone, you can't be a master.

Edit / emily