What is fear? It is a state of uneasiness caused by anticipation or awareness of danger, usually characterized by anxiety and lack of courage. Investment is a high-risk industry, with hundreds of millions of dollars fluctuating in a minute. In the face of such large fluctuations in funds, traders will inevitably have fear and put themselves under excessive psychological pressure. So the question is, what are the manifestations of fear in trading?
Worrying about gains and losses, unable to execute plans
This situation mostly occurs to traders who have a trading system. We all know that a trading system that suits us can be of great help to our operations, but building a trading system is not something that can be accomplished overnight.
After building their own trading system, some traders will fall into this vicious circle: the trading system has an entry signal, but I think it is not time to enter the market yet, so should I enter the market? So they start to struggle, and when they finally make up their minds to operate, the market trend has changed. At this time, you will be annoyed again? Why didn't you execute firmly in the first place?
In fact, the reason that hinders your execution is mainly because you are not confident enough in your trading system. You are not sure whether the signals it produces are credible, so you begin to doubt, and then hesitate. In the midst of hesitation, you miss a valuable opportunity.
If you want to solve this dilemma, you still have to start with your own mentality and be more confident in your trading system. After all, you have worked hard to create a system to make you trade more efficiently. If you abandon it in the end, wouldn’t it be a pity? Therefore, you must constantly optimize your trading system and give it a certain amount of trial and error space and cost.
Fear of missing out on opportunities
When I was trading in the past, I always wanted to catch all the market trends and wanted to exit the market at the very end to maximize profits. Then I didn’t want to miss any profitable market. As a result, I was overly nervous when watching the market. As soon as I saw the K-line fluctuating up and down, I thought it was time to enter/exit the market, so I acted hastily, “No matter what the price is, I must not miss this opportunity.” So with this mentality, I lost 3 orders in a row, lost 82% of my principal, and almost couldn’t even take out the daily expenses for that month.
Later I realized that I was afraid of missing out on trading opportunities, so I would enter the market no matter what the market position was, as long as it was a big market. I did not have a rough assessment of the overall situation at all. As a result, I bought at the bottom halfway up the mountain and almost died at the top of the mountain.
There is nothing wrong with the mentality of wanting to seize operating opportunities. The key problem is that you can't seize all opportunities, and it is impossible for you to seize opportunities that can make you profitable every time. There will also be many opportunities that make you lose money. So we should not be afraid of missing operating opportunities, but we should correctly identify opportunities that can make you profitable.
Too much emphasis on capital gains and losses
Everyone can understand this point. After all, real trading is different from simulation trading. In simulation trading, you can make a comeback after losing all your funds. After all, simulation funds are just a few strings of codes in the background. If you want hundreds of millions, it can satisfy you.
But it is different in real trading. We are using our real money. It is not easy for everyone to make money. Everyone wants to make a profit in the market, so they will attach great importance to their own capital, which is understandable.
However, if you place too much emphasis on the principal, you will fall into this vicious circle: if I make a mistake in this order, all my principal will be gone; although this order has a 75% chance of making a profit, it also has a 25% chance of losing money, so I am still doing well, and it is important to keep the money in my hands.
So after going back and forth several times, I didn't make any transactions. Although I didn't lose my principal, I didn't make any profit either. In a sense, I was also a failed trader. After all, "the names of bystanders will never appear on the scoreboard." I attached too much importance to the principal, which caused me too much psychological pressure. I ended up losing money in the places where I could have made profits if I had performed normally. This is a big problem.
So when we are trading, we still have to look at the principal correctly, but not everything starts from the principal, but everything starts from the transaction itself. When doing a certain order, what is the winning rate? If unfortunately it fails, what is the maximum loss you can bear? Under what circumstances will your position be liquidated? Is there a chance to escape before the liquidation? Will the trading loss affect your daily life? These are all things we should consider.
Summarize
From a psychological perspective, it is normal to feel fear when we face unknown things, but we cannot stand still because of our fear. We need to bravely explore the margins. After all, if we care too much, we will lose more. Only by overcoming fear can we make profits in the trading market. #美联储何时降息？ $BTC
