Let's put the technology aside for now, because I never think that technology is a problem. From a probability perspective, the auntie on the street's views on the market's long and short positions are actually pretty much the same as my chances of winning. I have also said many times that my winning rate has been hovering around 40%-50% all year round, and when it's bad, it's even as low as 30%↓. What makes me money is the profit and loss ratio.
So, under the appropriate profit and loss ratio, how can we train our operations and mentality to obtain positive feedback?
1. Try your best not to pay attention to numbers related to "price", "value", "profit and loss" and "funds".
Often, the imbalance of manual operations is caused by an obsession with these numbers, such as when the account rate of return is about to reach 10 times, or the income is about to exceed a certain integer, or the retracement is about to reach a personal circuit breaker point, etc. At these times, it is very easy to have an obsession with "must quickly reach/leave this state" in the trading mentality, which leads to overthinking, overtrading, and overoperation, resulting in a large retracement of the account.
My solution is to watch the market, analyze, and plan on the computer, and only place orders on the mobile phone. After placing an order, I set the stop loss and take profit (sometimes I don’t set a take profit but I must set a stop loss). I no longer look at the phone except in the face of emergencies and large fluctuations.
Although doing this may seem a bit like trying to cover up one's own mistakes, it can isolate the relevant numbers to a certain extent. As long as I don't know my current profit or loss, this order will not affect me, and I will not make reckless operations because I care too much about the profit and capital curve. This can help me maintain my trading discipline.
2. Stick to real trading, start with small capital, and make 10 times the money first.
Many friends enter the circle with a very high starting point, starting with tens of thousands or even hundreds of thousands of US dollars, and some even risk their lives and fortunes because they firmly believe in the coming of the bull market. First of all, I understand your urgency to make money, but before you confirm that you have the ability to trade, it is strongly recommended that you try the water with a small amount of money.
I have no objection to big funds being Holders, which is based on your own in-depth research on the project and your belief that it can develop well in the long run. Holder = investment. But Trader is simply a "whore". We need to have no feelings for any trading target, just like passing through a bush without getting a single leaf touched. Trader = speculation.
So as speculators, what we need to do is to use leverage skillfully, learn compound interest, and make a small investment to gain a big return. You can try it with 1000u or even 10u first. At this stage, we are not looking for the amount of income but the rate of return, and we can pursue a good growth curve by running in our trading system.
Wait until you are sure that your trading system is effective in the market before you slowly increase the amount of funds. At the same time, increasing the amount of funds is also a process of testing your own margins. You need to know when the amount of funds reaches what level and the operation will begin to be affected. Then the amount of funds below this level is your current "comfort zone of trading volume". After a period of time in the comfort zone to confirm that you can make continuous and stable profits, try to break through the current volume.
On the other hand, the larger the amount of funds, the more our trading focus should be on the amount of profit rather than the rate of return. In other words, we should reduce leverage, reduce trading frequency, and use other arbitrage hedging, spot hedging and other products to achieve low-risk and stable returns.
The road to trading is long, keep going everyone.