In the trading world, there exists a special atmosphere that seems to create fertile soil for huge profits. Many people are obsessed with pursuing unimaginable high returns, such as huge profits from heavy positions, precise low buying and high selling, and even miracles with an annualized return of dozens of times. These stimulate people's nerves like stimulants, making them willing to take huge risks to pursue these goals.
However, this kind of obsession and impetuous mentality is gradually spreading in the market. Trading can indeed bring huge profits, but it does not mean that everyone should use the pursuit of this goal as their own trading philosophy. Because in this process, the importance of risk control is indispensable. Only by playing steadily and strictly controlling risks can we survive in the market for a long time.
For the understanding of trading, we need to recognize the importance of risk control. In fact, those who can do this have surpassed most traders in the market. Too many people lack the bottom-line thinking in trading. They are unwilling to face losses, and even choose to increase their positions continuously when losing, hoping to turn things around. But in the end, this mentality of refusing to accept losses often leads to fatal losses.
Therefore, each of us should reflect on our own trading history to see if we have ever had such a mentality. If so, it is still too late to start adjusting now. After all, trading is not gambling, but a long-term career that requires reason and patience.
