In the field of financial trading, many people will formulate trading plans, yet very few can strictly execute them, especially beginners, who often casually change key elements such as direction, positions, stop-loss, or take-profit during the trading process.
A survey report from the financial industry shows that among all financial investment participants, only twenty percent can execute their trading plans consecutively for ten times, ten percent can do it for twenty times, and less than one percent can execute their plans consecutively for one hundred times. This is the fundamental reason why the vast majority of people in the financial market become losers.
William James, the father of psychology, once said: "Once a decision is made and execution is scheduled, set everything else aside and do not care about the results." This means that once a cautious decision is made based on facts, action should be taken immediately, focusing on execution without worrying about the results. However, in the trading market, many people often disregard their excellent contingency plans during execution, even if they do execute, the effort is greatly reduced.
Masayoshi Son made an investment that can be called the "fastest in the universe," finalizing a $20 million investment in Jack Ma's Alibaba in just six minutes. Fourteen years later, Alibaba went public in the United States, and this investment ballooned to $54.4 billion, yielding over two thousand times profit. Masayoshi Son spent a lot of time researching and thinking, but his decision-making was extremely quick; he believed that if he couldn't understand something in ten seconds, continuing to think about it would be a waste of effort.
Many people mistakenly believe that technical analysis is useless, thinking that experts can casually place orders and make big money, which is an unrealistic idea. Experts also have personality traits and human weaknesses. In fact, all the analysis and research before trading is a key step that determines the final outcome of the trade. If you don't want to dabble like playing a game or in a casino, you must work hard to deduce logic based on market conditions, make contingency plans, and formulate a trading plan. These pre-trading tasks are time-consuming and labor-intensive, and once the plan is made, it should be firmly executed during trading without worrying about the results. Because the contingency plan already covers possible adverse situations, you should proceed according to the market trend, rejoice in profits, and accept reasonable losses as per the plan, willing to bet and accept losses. This is the only way to establish a long-term presence in the trading market.