Disk refers to the disk we often say; repetition means repetition and review. The earliest period of recovery is the stock market. With the increase in investment methods, the scope of application of this term has gradually expanded, and recovery has become more and more common in foreign exchange transactions.
The resumption of foreign exchange trading is a review and summary of the past situation in the foreign exchange market. We can summarize our own experience and lessons to better invest in the next transaction based on the upcoming market.
Is recovery useful?
It can be said that different people have different opinions on whether recovery is sound. But for most stable profit traders, recovery is a required course.
Many foreign exchange traders are not professional foreign-exchange traders; many traders need to consider work, life, and trading. In this way, in everyday work and life, many markets will naturally be missed. For these traders, recovery is very useful.
Recovery is not about the regret of looking at historical markets, nor about pursuing new markets that may emerge. The premise of recovery should be that the trader has a complete trading plan. The purpose of recovery is to test your trading plan and make appropriate corrections. A good trader may complete his transaction in the recovery process; opening a position is just an execution process. People often say, plan your transaction, trade your plan.
It's like a military exercise. I cannot test my tactics on the battlefield. The second round can make traders' vague ideas more accurate and improve their imperfect systems. For example, you can verify whether a particular signal is valid and whether the insight is reasonable during recovery. If you reconfirm the details of the trading plan when you resume trading, you will be more likely to win the actual battle.
How to replay?
Many software will bring replay-related functions. Taking the most commonly used MT4 as an example, users can select specific trading products to replay historical data. Traders can choose the replay model and period according to their habits and adjust some details.
Recovery involves many things. Specifically, traders can consider from the following perspectives:
Historical data: When traders want a comprehensive and detailed understanding of a product or industry, they can use historical data replication.
Technical recovery: Technical recovery is mainly aimed at experienced traders in the industry. They can find their transaction records, custom periods, order details for a week or a month, and resume their transactions. In this process, traders can summarize their behaviors, compare their trading plans, know whether they have been executed properly, whether the trading system is defective, etc.
Position and money management: Position recovery is also essential for traders. Traders must first properly manage their jobs to collect funds successfully and guide their future investments and transactions. Suppose the trader's position is very random or even repeated orders for the same product in a short period. In that case, it indicates that he is not recommended to become a novice or a "gambler" who has lost a lot of money. Therefore, the trader should pay attention to whether there is a problem with its position management or whether there is a standard; if not, it needs to be formulated as soon as possible.
Trading system: A complete trading system is essential for traders. Therefore, in the recovery process, we need to improve and optimize the trading system continuously, and at the same time, do an excellent job of relevant statistics. Recovery is a process of static verification. Trading itself is a probabilistic activity, and statistical work is vital. In a practical system, a good recovery will significantly increase the confidence of traders.
Mental recovery: Mental recovery is an essential factor that cannot be ignored in trading. Mental recovery mainly refers to the torture suffered by traders based on the main problems they usually encounter, such as whether they strictly implement the trading plan, abide by their own rules, do more out of impulse, and reckless attitude matter. Traders should pursue stable profits, not because of short-term book gains and losses. Expected profit is a trap that entices you to make the wrong decision. Weaknesses of human nature, such as greed and arbitrariness, will cause traders to fail. The focus of traders should be to do the right things, develop procedures conducive to the realization of account appreciation, and implement them appropriately, which is a joy.