Everyone should have some experience that mentality is crucial in trading.
For example, sometimes you feel that you are very lucky and you keep making money when you make money.
Sometimes you feel that you are very unlucky and you keep losing money when you lose money.
This kind of mentality accounts for a large part of the reason.
The market will only add icing on the cake and add insult to injury, so that those who make money can make more money and those who lose money can lose more money.
If you are losing money now, you will often lose more later, because when you are eager to get your money back, your mentality will be messed up.
This bad mentality in trading will make you do three things:
1. If you make a little money, you will rush to make money and put it in the bag, fearing that the little money you made will also be gone;
2 If you lose a little, you will feel anxious, fearing that you will lose more and stop losses frequently;
3 If you don’t make money or lose money, you will be afraid of missing out, and you will be hammered in the chest and stamped your feet, which will lead to frequent transactions, frequent stop losses, and fall into a vicious cycle, which will eventually lead to no return, let alone profit.
So you should keep a good mentality in this market. Don’t rush to open the next order after losing money, thinking about getting your money back quickly. Frequent operations will make your mentality more chaotic!