FOLLOWME Interview丨Jason Huang
Jason Huang is a foreign exchange trader from Taiwan. He entered the foreign exchange market in 2015 and experienced four position bursts. Finally, he found a suitable trading system last year and has slowly entered a state of stable profitability.
We are glad that he participated in this interview and shared his experience with you in FOLLOWME community.
1.What kind of trader are you?
I am a trend trader. One advantage of trend traders is that the unilateral market can increase the size according to the trend, so that the position can be expanded rapidly, and there will be bright results in the profit loss ratio.
2.What do you think is the most important thing for trading to achieve long-term stable profits?
There are two core points that will affect the whole trading plan.
First，Position profit / loss ratio: the profit / loss ratio should be controlled above 1:2, and the trading stop loss should be controlled within 5% of the total position. When the stop loss amount of each transaction can be mastered, the mentality will change, and a rational state will be maintained when judging the market. There will be no mentality of wanting to win. Every sum of money in the account is a bullet. When trading, you should wait for the emergence of prey like a hunter and enjoy the beautiful fruit.
Second，The mentality should be correct. Don't think about getting rich overnight or making profits from every trading order, because this is an unrealistic idea. What we can do is to hold the profit list tightly, and look for overweight opportunities every time we go back to the market, so as to maximize the benefits of the position.
3.Do you use more technical indicators or more graphics?
Whether using technical indicators or graphic trading, the final result of these tools is to help us judge whether it is multi-party or short party in the current market, and how to make trading judgment. My trading system judges the high and low points of monthly, weekly and daily graphics according to the, and judges whether the market is long or short. The technical indicators only assist me in judging the entry time and position of each trading position.
4.What do you feel most confused about in trading?
Before I found my own trading system, I often wondered whether the market is long or short. Entering the market without knowing the direction of the market is a very dangerous thing. It is easy to disrupt the original trading plan by a little fluctuation of the market.
5.Do you think there is a perfect trading system?
I think there is no so-called perfect trading system, only a trading system suitable for its own characteristics. It seems that some people are very handy in making shock market, but they are not used to meeting trend market and do not know how to make orders. Mainly because of different ideas, the information fed back to you by looking at the market is also different.
6.What do you think is the difference between you and other traders who have tried but failed?
The biggest difference is that I know what market I should do and what market belongs to me. The trading plan can tell me how to make profits and control the amount of losses. I have summed up the experience of breaking positions four times in my life. The biggest reason is that I have a wrong mentality. I want to get rich overnight, resulting in excessive hands. When the market has been unfavorable to my own situation, and I am unwilling to stop the loss, resulting in greater and greater losses and an irreparable situation.
7.When choosing varieties, some people will choose varieties with large fluctuation range and some will choose varieties with strong trend. How do you choose varieties?
In terms of selection of varieties, I prefer to choose gold, crude oil, silver and index commodities. The characteristics of these commodities are relatively volatile and have strong trend. There is more room for entry in the implementation of overweight strategy. I prefer GBP / USD and USD / JPY for currency versus commodity. These two features are more in line with my trading plan.
8.How do you do risk control?
In terms of risk control of transactions, I stipulate that the amount of each loss is about 5% of the total amount. The position of the stop is the position before the stop. When the rules are defined, I can quickly control the position risk regardless of the size of the principal.
9.At present, what is the most convenient investment you have made? Is there any variety that you've stumbled over?
At present, the most popular investment product is index type, mainly when the market is too unilateral, which is a great thing for trend traders. Gold stumbled too much. I made a big mistake: no stop loss and too many orders. When the market is in the opposite direction to my trading, I still believe that it will make me make money one day, resulting in the explosion of the whole position.
10.When you execute a transaction, is it a mechanical process or a subjective process?
I am subjective in the process of executing the transaction. Under the premise of executing the transaction, I must first have a set of profitable transaction plan and make a resumption every day, which can reduce the lack of transaction and maintain the stability of my mentality.
11.What trading strategies do you mainly use in the competition?
I use the trend strategy in the game. The charts I mainly observe are H1 and D1 to make cross judgment. When I break through the pressure / support, I will choose a small amount of entry trial order. Of course, there are true and false breakthroughs. At this time, the trial order plays a great role. This is a forward concept. Next, I will observe that the market moves in the original direction. If the return low point is not broken, I will choose to overweight at the return low point, so as to seize the trend and enlarge the profit.
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