Short positions are a crucial trading strategy (middle)

INTRODUCTION: Around 2500 BC, India's oldest document, the Vedas, had the application of the symbol “0”, when 0 was empty in India. The concept of 0 was born and developed in India because of the philosophical thinking of “absolutely no” in Indian Buddhism. 0 indicates short positions in futures, and gives up in life choices. In the realm of life, it is about willingness.

Futures trading, if life is the art of giving up

There are many choices in a person's life. Those who can make a smart choice and give up are all who know how to choose and screen art. It is often said that the two evils are taken lightly, and the two interests are taken seriously. There is a third option in addition to the light choice: giving up.

Futures, if life needs to rely on technical analysis to make choices, rely on trading strategies to give up.

Everyone who studies and uses technical analysis always chooses the market continuously, daily trading, and daily positions. They never know that in this 365-day position, only 240 days of trading days are excluded, only 240 days. One third of them need to make short positions. It is not difficult to make money in futures trading. It is difficult to make profits without reversing. It is even more difficult to make profits without hurting the principal.

Traders made money in the transaction and thought they were financially free. The market for making money in the broader market was everywhere. Every day, the position was not exhausted. Soon the profit evaporated, and the principal was running low. The main reason, not knowing how to trade more is to give up, to at least 30% of the trading time to make themselves in an "empty" state. The money management is the best trader. You hold positions every day, hold positions at any time, do not know how to empty positions, and thousands of miles of long dikes will collapse in the ant nest. How to eliminate and eliminate ant nests, the only way is to empty positions.

Life and futures are the same. Choice and abandonment are twins. When you exercise your choice, you must give up, instead of using your chest as the airport's tarmac, you want to have and embrace everything. If you don't know how to give up, life will not be happy, and futures will not do well.

Why technical analysis books don't talk about short positions

The technical analysis of futures we saw in Schwege, Boehringer, and Murphy did not have a chapter on empty positions. It was not that he was not important, but that he was too important. It is just that the short position belongs to the category of trading strategy. It is said that the technical analysis belongs to the category of foot and foot clinics, and the trading strategy is the category of intracranial and cranial nerve clinics. Short positions are trading strategies, not technical analysis, and technical analysis masters have no choice but to eat this fat.

Short positions can effectively avoid profit taking, and the injury time of football is like the short position of futures. At this time, the score is solidified. We all know Messi and Maradona, they will be born a football genius in the third century. I believe that the highest level of technical analysis can not be compared with Messi's skills. It is such a genius. He cherishes the injury time in the game, hurts the first drink, and makes a tactical exchange with the coach. Observe some of the opponent's new tactical trends, then slowly return to the stadium to play. The top strategists on the football field, Qi Dan, Messi, Maradona and Ronaldinho, will all use the "empty position" on the football field to make a reversal.

It is not easy to learn to use the interruption of the game, the time of injury (not the time of injury), and the time of injury is only meaningful for major competitions and famous teams and outstanding players. This is similar to short positions, short positions for beginners, junior transactions. It doesn't seem to make much sense. Their transactions are still in the stage of intermittent, potholes and jealousy.

Positions are not required, and 30% short positions are a must.

Every trader will have a lot of unspeakable quotes. For a long-term trader, at least 30% of the market is completely incomprehensible and unpredictable. You ask him why he wants to hold a position, he can't say it, maybe it's a habit. Maybe he doesn't know how to hold a position. In general, he doesn't know. He thinks that everyone is like him. He doesn't pause or stay in the day and night. Position.

In a trade, a position is not necessary, and at least 30% of the time is required to be short. There are two major links in the transaction: one is to open a position to earn profits, and the other is to open a position to avoid profit-taking; You said that I am not short-selling, it is not your high level of technical analysis, but it just shows that your transaction is still not clear, not mature.

Many traders have such psychological symptoms. They told me that I am not a technical analysis problem. It should be a psychological problem. As long as I don’t have a heavy position, I will not be degraded, and I will be uneasy and uneasy. I suggest that they compromise, not short or heavy, but 15% of the light positions, but the role is very small, they seem to have been accustomed to the mentality of the distortion, every day, not heavy positions, fear, trepidation, restlessness Can't live.

About 30 years ago, I interviewed a defendant in Sanjingong and asked him how he robbed a passerby. He told me that he has been serving his sentence for most of his life. He is accustomed to this disciplined life. When he is released from prison, he says that he is regaining his freedom. It is a nonsense. He is very uncomfortable in society. He is trying to return to labor reform and reeducation through labor. The place to return to the collective life of the prisoners. Visible distortion will be treated as normal.

I have to learn to fish for two days.

In most cases, this vocabulary is derogatory; but in the perspective of trading positions, it is highly desirable and appropriate: the way of civil and military, one piece of relaxation; to relax, you can profit without voicing. Three days to go fishing, come back and use two days to mend and dry the fishing net, this is the best work for fishing. It is impossible to fish the net every day, and it is impossible to repair the fishing net during fishing.

The football players of the world famous clubs usually have a maximum of one week of competitions, but they are trained every day, so that the fists are not separated from the songs. Sports emphasizes the competitive state. Our traders are talking about the trading status. No one can guarantee the trading status. Why are you never empty? Even the world's top athletes, such as Chelsea's club king Azar, was extremely depressed last season; Balotelli, who is known as the god of the gods, once succumbed to world football, but also lost for many years. To know that they are football players, sports geniuses, they are still so, you will continue to be a good state as a normal trader. In this industry, I know that even a very good trader, if you don't know how to rest to adjust the state, there will be one or two big mistakes in two or three months. The best way to do this is to take a break from the scene when you get out of the best.

I have evaluated a trader who uses the trend-trading method. His approach is to chase the strongest trend of the day and track the hottest varieties and funds. But he lost 50% in one day. He told me that this situation has happened twice in three months, and he needs to stop and take a rest. There is a very talented young trader who tells me when my status is going to be down, and there is still a huge profit, which makes me stop, and my trading status may be bigger than the market ups and downs.

What has been stated in the long-term positions, one that does not understand the trading, technical analysis and trading status; the second is difficult to cover up their own greed. There is a trader who has no short positions in the 240-day trading time of the year. When I asked him, he said seriously: You said it wrong. Although I can't trade the holidays for 240 days, I have added a margin. Come to the position for the holiday. This is a stunned person, he is holding positions every day of the year. I asked him how about his profit and loss? He said that the loss is certain, at the time of each closing. If I listen to your advice, I believe I will make a profit.

The psychological state of the trader, especially the trader's mental state and his physical and mental health, is the most worthy of attention. Because in this industry, all the profits are actually at the cost of physical and mental health. As a trader, it is not easy to survive in this industry. It can be said that every consumer's body and mind are subjected to very large and very severe destruction in the transaction. The so-called repetition, mechanics, and tireless training and training that I have said and advocated for everyone's implementation are actually hurting the trader's body and mind.

Even if the capital management is strictly implemented, it will be short-selling.

A trader asked me to implement your fund management philosophy, and 15% of positions must also be short-selling? This is a certainty. After you earn 15% of your position and earn a profit, the consequences of holding your position all day long are very serious. As far as the overall trading behavior is concerned, the profit taking position, the damage to the account, and the loss of the principal are far more likely than the profit, which is why 99.8% of the traders are losing money.

You can't consider empty positions because you have implemented money management. Short positions as a trading strategy are also a part of the transaction and must be fully implemented and implemented. Many traders immediately changed other trading varieties after the stocks of the positions were closed. It seems that in the market, for him, there has never been a market that is not suitable for holding positions rather than short positions. However, if you analyze his trading records, you can see that most of the positions are in the state of profit retreat and principal loss. Then why should he prefer to lose positions and not go short?

The view of ordinary traders in the market is that short positions are a manifestation of low energy in technical analysis. In fact, every day, positions, daily trading, and never-empty positions are among the losers, and they are all trading miracles of the 99.8 losers.

We randomly surveyed 20 traders. In the state of 15% of their positions and 5% profit, all of the two months of uninterrupted positions occurred profit-taking and principal losses, if timely, The loss situation of the appropriate introduction of the short position mechanism can be completely avoided.

(Editor: Wu Xiaolin HF106)

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