Do you repeatedly fantasize about the scene after success, only to be slapped in the face by reality time and again?
This is something that every trader has experienced, and you and I are no exception!
The difference is that some people give up under such torment, some lose all their principal, and very few persist. But what is the meaning of persistence without a complete enlightenment?
I have watched countless tutorials, learned a lot from traders' summaries, and analyzed countless reasons for failure! I have summarized the following points, which I believe can help you:
One, Mindset and Emotional Management
Mindset and emotional management do not mean that you cannot be happy when you profit or cannot be frustrated when you lose, nor does it mean becoming an emotionless robot! Instead, it is about first firmly believing in your eventual success in your heart, believing that the current losses are just temporary, and truly creating a positive belief system. Secondly, when losses occur, it is crucial to maintain a rational and calm mind, avoid blind orders, and be able to analyze correctly and operate rationally!
Two, Continuously Improving Trading System Collapse ~
Remember, trading is not gambling, but it does have probabilistic attributes. You must continuously summarize and explore a trading system that suits you in long-term trading. Specifically, establish your own trading rules in various dimensions such as indicator analysis, position sizing, take profit and stop loss, and long-short cycles, to constrain yourself and define your trading rather than being blind; otherwise, you will fall into an unrestricted dead cycle!
Three, Capital Management
There is a saying, 'As long as the green mountains remain, one need not worry about firewood.' You absolutely cannot have a reckless mindset; this is very dangerous. Because once you have this thought, in most cases, the market will fulfill it, making you completely lose hope! You must strictly control this, summarize your maximum consecutive losses to manage your capital, and ensure you have a chance to turn things around. This requires extreme calmness; only when you still have chips do you have the opportunity for rebirth!
Four, Technical Analysis
This is very important. If you have no technical skills at all, then you should never place an order, because that is gambling on luck, and you will definitely fail, which is very frightening! Learning technical indicators is a gradual process, but once you overly rely on various indicators for your judgments, you often find yourself confused, making frequent mistakes, and then doubting the techniques. It is crucial to simplify by finding indicators that suit you among many, such as common naked K patterns, Bollinger Bands, moving averages, MACD, volume bars, OBV, etc., and to grasp the essence of simplicity.