The way to survive for post-00s traders: use 80% fundamental analysis to reconstruct trading logic!

Although there seems to be no threshold for making transactions, there are very few people who can really stand out. Many traders have been struggling in the market for many years but still have not found their own path to success. This also reflects from the side that trading is not a field that can be mastered on a whim. However, a recent phenomenon shocked EagleTrader: more and more young traders in the market are beginning to emerge and show amazing strength. For example, Zeng Yufan, a trader who just passed the assessment, is only 24 years old, but has already formed his own unique insights in the trading field.

　　To gain an in-depth understanding of the story behind the young trader, EagleTrader conducted a trader interview with him.

　　Because I am more determined

　　Although traders Zeng Yufan have been involved in trading for only two years, they have shown unique thinking and strategies. His trading philosophy has gradually taken shape through repeated practices and summaries.

　　Trade Zeng Yufan first entered the field of foreign exchange trading, which was purely a coincidence. However, he soon regarded it as his future career and with this determination, he persisted all the way for the past three years. Because he is still young, his trading career also brings the unique motivation and exploration spirit of young people.

　　Basic analysis is the leading

　　At present, Zeng Yufan trader operates his profit-sharing account in a full-time state, but after returning to school after the summer vacation, he will be transferred to a part-time job. He has a clear proportional division in key links in transaction decision-making. Technical analysis only accounts for 20% of his decisions, while fundamental analysis is as high as 80%, and intuition and experience are rarely used. He believes that achieving long-term and stable profits in trading and proficiency in fundamental analysis and technical analysis is the basis, and a good attitude is also indispensable.

　　When talking about trading strategies, Zeng Yufan’s trader’s strategy has not yet undergone significant modifications. He looks at the future and plans to seek greater breakthroughs in fundamental analysis, especially in-depth analysis and understanding of core fundamental data. In his cognitive system, although technical analysis has a certain effect, in a large time period, fundamentals often determine the direction of trading, and the proportion of technical aspects is about 20 to 30%.

　　In the trading process, Zeng Yufan traders knew the importance of eliminating the luck factorsex. He firmly eliminates transactions that he can do as he wants, because even if such transactions occasionally make profits, they are like laying time bombs and may cause crises in the future at any time. He firmly believes that having a trading system of his own and earning returns that conform to his own perception is the key to stable trading.

　　Position Management Strategy

　　When facing the situation of increasing positions, Zeng Yufan traders have rigorous response strategies. If the position is heavy, he will set a stop loss in advance. For example, if you encounter a false breakthrough when chasing orders, the chasing order will have a corresponding stop loss position, while the bottom position or mid-line position will not be affected by this. He deeply understands the role of leverage in trading, and knows that time and funds are leverage, and different ways of using it will bring completely different results. Although he has not yet exploded in his trading career, he believes that this may be due to his conservative style or his experience is still weak.

Faced with a sharp pullback in profits, traders Zeng Yufan believe that this is often related to the tiling of positions. When the price advantage weakens, such as approaching the top, or when the long logic has been basically fulfilled, you should not over-pursuing the last bit of profit. Especially in important positions, we should pay special attention to the profit-loss ratio at the weekly level to reduce drawdowns. Of course, in a large fluctuation, a pullback is sometimes inevitable.

　　Strictly implement trading plans

　　Trades Zeng Yufan always strictly implement trading plans. Taking this exam re-examination as an example, based on the core logic of strengthening risk aversion and weakening of stock indexes, he formulated a strategy to treat risk aversion as a trend and stock index as a box, achieving good results. In terms of market preference, he is more fond of markets with high volatility, because this market can not only make profits through trends, but also create excellent profit-loss ratio opportunities at high volatility.

　　In terms of risk tolerance, Zeng Yufan traders will adjust according to the advantages and disadvantages of opportunities. When he encounters a better opportunity, he is willing to take the risk of 5 points (out of 100 points), and when he is cautious, he will only bear 3 points.
point. As for the time when he returns to the highest point of net value after each maximum retracement, he cannot give a definite answer yet due to the long market evolution cycle.

　　Although he didn’t take the exam for a long time (less than a month), his clear understanding of trading philosophy and strategy has laid a solid foundation for his trading path. Although he has no experience to share for the newly registered trader, he believes that as time goes by, his experience and insights will provide valuable reference for latecomers. In the wave of foreign exchange trading, Zeng Yufan traders are moving forward steadily in their own way, constantly exploring and growing.