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1、外汇生存法则（Foreign exchange survival rule）The law of eternal existenceThe law of eternal existenceEveryone spends a lifetime to create the success, enter the currencies trading everyone thinks they will succeed, will profit from the market, improve the life of success, if a person can not make profits o
2、n the market that he would not open account transactions.In currencies trading everyone thinks they will be successful, but in the real world may be only 10% people to be successful, the remaining 90% will be within a year because of unacceptable losses have been occurred, or violent positions, or f
3、unds are not following, was forced to stop trading and exit currencies.These losers, some will wait for a period of time until the funds appear again, and forget the failure last time, again with confidence and dreams, once again into the currencies, few people will engage in transactions in the fai
4、lures and setbacks, improve and progress before the transaction, first to assess whether their transactions can be so that their long-term survival, design a set of trading methods, avoid themselves within a year, as 90% of those who were before most people are not aware of their own mistakes, is de
5、stroyed by the market and losses. Define riskAs a trader, the transaction itself is like a business, opened a grocery store as a business, when the store into a batch of goods, began to bear the risks and profits, if the goods sold, cheap stores had to bear the loss for sale.u0008The risk of good gr
6、ocers is only willing to accept reasonable, even continuous errors in judgment, continuous purchase three or five times are losses, grocery stores will not collapse, a batch of two boxes of goods, is reasonable, with all the money into the number of full truck loads, and what kind of gambling no two
7、 the.Reasonable risk definition related to the management of funds, but also related to the transaction can stay in the market time, for any transaction loss, I defined in the initial account of 5%, so you can make sure that Im in the trade field, unless twenty consecutive failure happened, otherwis
8、e I would not be forced to play.If the months trading losses exceed 10%, that month will have to stop trading, so that you can make sure you stay in trading for the next ten months.The definition of risk, can help themselves under reasonable risk recognition with, this is normal business losses, do
9、not care, do not bargain, or expect Gods help, temporarily to wait for ideal trading OTC trading opportunities, and review their own mistakes.Concede defeatTell yourself every day when you start trading:1., the deal could fail.2., if my transaction is a loss, it is entirely due to my own judgment.I
10、cant beat the market. The market is the greatest. u0014When a position after the market trend towards the position of favorable direction, many people will be so overconfident, keep the position, until a trend reversal following still adhere to their own views, take the profit harvest opportunity, a
11、dmit defeat mental construction, can help people avoid this transaction.When a position after the market trend toward the negative direction of the position, many people will be because of overconfidence, guarding the position, letting losses, even now, wait for the market to reverse, admit defeat m
12、ental construction, can help people avoid this transaction. u0018Ocean and marketThe ocean is useful for catching fish and reaching other islands through the ocean. But the sea is terrible. One may die at sea.Like the ocean, the front of the screen flashes numbers that represent profits and successe
13、s, as well as losses and failures.A sailor can not control the ocean, but he can observe the ocean, understand the tides and ebb tides of the ocean, and determine when to sail and when to harbourTraders, like sailors, have no control over the market,But we can observe the market movement direction i
14、s determined, up or down, when entering the coagulability or opening, when to close the warehouse exit.The loser transactions in a profit after the transaction, overconfidence change, feel that they can change the market, the market will eventually toward your desired direction, the market has not b
15、een reversed before the account have been exhausted, or profit lost, such as seaman after several safe sailing. Began to think that he can control the sea and tide, summon wind and call for rain, so to sail under adverse weather conditions.When we try to control or anticipation of market reaction, a
16、s the King Xerxes army command of the Persian Empire to the ocean, threatening to make the ocean as funny, but every day there are people in the market, perhaps we are among them. u001FFund management objectivesThere are three objectives of fund management:The first is long-term survival.Second is a
17、 steady gain.Third is a high level of return.Order is the first to meet the first condition: long-term survival, and then is a stable profit, and finally a high level of return (high profits), this is correct.If the goal of money management to high profit in the first place, forget the long-term sur
18、vival and stable profit traders because of this and one or more very high multiples of profit, even dozens or hundreds of times more amazing profit, but as long as one or two mistakes, it is possible for subsequent the exhaustion of the transaction funds people army review Mo, traders were forced to
19、 withdraw from the market.Xi Lin, the ancient Greek myth of the sirens, the sea seaman attracted her with a wonderful song, let the seaman jumped into the sea and died, Audi game will be all ears stuffed with wax seaman, he will himself tied to the mast of the ship, so that the boat can safely pass
20、through the sea, and can enjoy the sea monster Xi Lin wonderful song, everybody do not have to pay the cost of life.The same is true of traders, who must have good money management plans and tie their own transactions on the capital management plan.u0017Market componentThe market is made up of five
21、components, each expressed in four animals:Bull trader, because the ox horn is always up to the top.Short transactions (bear), because the bear always fight down.Stupid traders (pigs), because pigs are always greedy.Swing the trader (sheep) because the sheep are always wavering.The last one is the p
22、erson who looks at the scene and joins the four animals at any time.While trading, the establishment of multi position bulls, bears established positions, pigs with their fantasy established positions, greedy delusion profit, sheep faction timid watching the market ups and downs, a plug in the horn,
23、 while wearing bearskin.Bull and bear fight, only one party will win, but only a sheep to be slaughtered.Processing and predictionThe vast majority of people will be analyzed in trading transactions, probably via the analysis of the fundamentals, news analysis, technical analysis, or through some my
24、sterious methods (I Ching divination crystal ball and so on), different kinds of data analysis and the breadth and depth of traders are very different, but most traders may think of analysis is to predict the main is to predict the future price direction changes, and changes in the magnitude of the
25、length of time.In many fields, the professional is focused on treatment, only amateur staff to focus on the forecast, for example a wounded was sent to the hospital, the injured chest inserted with a knife, with gunshot wounds, arterial bleeding, family members may ask the doctor whether the injured
26、 can live, when can the rehabilitation. Are predictive questions. u0001But the professional doctor is not predict, but immediate and correct treatment, he should observe of the situation, real-time processing of large artery suture, and blood transfusion, then remove the chest knife, suture the dama
27、ged organs, always pay attention to infections and complications, the doctors main job is not to predict treatment,If the patients family asks the doctor to predict, the doctor may predict, but that doesnt make much sense.Trading in the market, want to get profit and return, predicting the future is
28、 not needed, to make the world is a measure of the situation, the market is set coagulability of bear or cattle forces are more powerful, and then change their position, stand to the side of the strong will.Wynn theory.The market price to only two: upward or downward, if not to analyze any informati
29、on, just on the probability of choice, to establish long positions of the profit probability is 1/2, the loss probability is 1/2, time to establish short positions so.But if the price in Jiancang, towards a favorable direction, as long as the position traders stood motionless, allowing prices toward
30、s a favorable direction to develop, until the reversal, if the price is moving in the negative direction, in a short time after the loss beyond the initial account of 5% of the amount of funds will be touched management plan stop loss principle, traders will get out of the position, in contrast, the
31、 transaction price of the profit theory, there will be a large segment, the biggest loss will be limited in the initial account of 5% of the amount of profit and loss probability in random positions is the probability of each 1/2 case, the theory must have profit tolerance and continuous error rate
32、20 times.War and tradeDuring the war, the victorious can rob the loser all property wives land and housing market transactions, like war, air and many war, wins the party will defeat the one side of the capital account is removed, the failure of a party in addition to lose money and lose confidence,
33、 psychological depression.On the battlefield, in addition to the warring sides, as well as the sidelines of the country, ready to join the war situation, the trading field in addition to the two parties engaged in long and short battle, there are always new people to join both sides of the long and
34、short.The right trader should always assess the forces on both sides of the battlefield, and join the powerful side to fight the weaker side and take the amount of the account in the vulnerable.When traders observed that he joined the party was weakening, traders should quickly defected to the stron
35、g, rather than continue to stay in the Party of the disadvantaged, so that their account funds become someone elses prize, until the account is exhausted, was forced to withdraw from the market.As long as the trader is able to predict the movements of the long and short sides of the battlefield, he
36、does not need to predict the evolution of the long and short periods of the future trading. As long as he is on the right side of the bank, the money in the account will naturally grow and there is no need to calculate the profit and loss.Reasonable goalsReasonable goals can curb inappropriate greed
37、, and ten out of five traders forced to do so are due to undue greed.The high risk of the transaction, or to account for all exposed in high risk, is likely to get super high returns in a short period of time can also be a success, but as long as to remain on the market, and soon after, one or sever
38、al of the mistakes, will be able to destroy all the achievements of the past, too destroy trading career.If a years profit can reach 25%, it is a good target.If you can maintain 25% profit for five years in a row, you are qualified to be a successful investor.If you can maintain a 25% profit for ten
39、 years in a row, you are qualified to be a successful manager.If you can maintain 25% profit for fifteen years in a row, youll qualify as a star in Wall Street,There are countless managers and traders willing to take such a performance, but 2% risk limits. 10% monthly loss limit. Annual target of 25%. The three rules of capital control are unacceptable to most people, because these three restrictions make a fast rich dream break