Trading is a business, where traders constantly observe the price points before placing orders, weighing their personal anticipated target prices, and considering when to buy and sell, and when to close positions to cut losses. Every trader is eager to continuously achieve breakthroughs in profits, but the trading market is like a battlefield, where opportunities for profit and risks of loss are corresponding.

Many people want to profit from volatile markets, but the reality is that most are disturbed by various unexpected counter-trends and have to cut losses and leave. As for those who exceed expectations in earnings, they only exist in the rumors of the "great gods", and the experience of doubling the position several times in a short time is also something that others have.

So for ordinary traders, besides doing a good job in daily trading and fixing the original income, is it really impossible to have excess returns? In fact, although excess returns are not something that can be sought, ordinary traders still have opportunities, provided that the following points are well done:

1. Clear self-positioning

Each trader has different funds in hand, understanding of the market, and trading time, so the first step for a trader is to choose their own trading varieties, and the second step is to formulate a corresponding trading plan for the trading varieties. Of course, everyone should decide which trading variety to invest in based on the amount of funds in hand, after all, the investment methods for 1 million, 100,000, and 10,000 are completely different.

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In addition, each trader's trading time period is different, so it is necessary to choose suitable trading varieties according to one's own time schedule. Human energy is limited, and only by doing the right thing at the right time can better results be achieved. At the same time, continuous monitoring of the market will prompt traders to trade impulsively, and in the end, they are easily swept away by various unexpected changes in the market.

Therefore, it is very important and necessary to clarify the expectations of the market and oneself, combine the scale of funds, and then make a reasonable plan. For different trading varieties such as gold and crude oil, choose good points to enter the warehouse, do a good wave, and meet one's own profit expectations to settle accounts. Long-term trading will be more complicated, and more factors need to be considered before and after making orders. Therefore, both profit and stop-loss targets need to be carefully planned.

2. Grasp various trends

In the trading world, most of the market conditions are in a state of fluctuation, and the real money-making trend market often requires long-term patience. However, due to the long holding time, there are countless people who give up in the process, so when a big market appears, they miss the opportunity.To avoid holding positions and waiting in futile volatile markets, the best approach is to wait for the trend to emerge before taking action. Different people have different understandings of the size of trends; some products may only have two or three major cycles a year, while others may be able to complete a V-shaped bilateral trend within a week. Therefore, analyzing a product requires a combination of the market, fundamentals, and news to better determine its operating cycle.

If you encounter a market that has been fluctuating, it is necessary to maintain a wait-and-see attitude. Even if you have already made a certain profit, for safety reasons, you can choose the right time to exit the market first, and it's not too late to enter the market after the trend has formed. Left-side trading is not something everyone can do, and patterns such as double bottoms can only be judged after they have formed to determine the location of pressure and support. It is not reliable to enter the market hastily to chase more or less.

III. Take profits in a timely manner

Everyone wants to make profits again and again, but the profit of a single order is limited, and no one can become fat at one breath. Greed is endless, and the final result is often a big defeat, and the profits made have to be vomited back. 90% of trades have a profit target, so after reaching the profit target, do not hesitate, and close the position as soon as possible.

There are only two situations for holding positions beyond expectations: the first is that the entry point is very good, and the trend has been achieved; the second is that the trend of the market has been continuous, and it has far exceeded the profit expectation. However, this is a small probability, but as long as it appears, it can be held for a longer period, and the profit result is what we often call excess profit. Even so, once the situation of top and bottom conversion occurs, it is necessary to close the position as soon as possible.

Trading is a battlefield without smoke, and if you want to win the battle, you must be prepared. In the trading field, the amount of capital is not the key, but the key is the judgment of the trend of the trading product and the establishment of clear profit-taking and stop-loss targets. Under this premise, combined with one's own trading style, trading habits, and financial situation, reasonable arrangements can be made to grasp the initiative in the complex and changeable market. As for excess profits, it is more like an additional reward from the market for one's correct judgment, not greedy, and not exhausted.