Why do we sometimes feel annoyed, regretful, angry and other negative emotions after stop loss?
Too absolute in viewing trading
No strategy or indicator is absolute. Trading is inherently non-absolute. Many traders will have
"My trading system has been carefully built by me, and it will definitely be 100% profitable"
"There are so many bearish/bullish factors at present, this order will definitely go in the expected direction"
"It is exactly the same as the historical market, and it will definitely rise/fall next"
Including the hotly discussed whether there will be a second test in the past few days, etc.
These are actually too absolute in subjective judgment of these things, as if the market must go this way, and it should not go this way, and it is not a good market. Thus, they increase their positions or even fill their positions, and forget about the originally planned position management. In many cases, the phenomenon of "blockchain scam" will occur.
In many cases, the market often runs counter to the subjective. There will be yin and yang. Everything has two sides. Follow this principle to make two expectations. No matter how the market goes, you will have a good idea and a way to deal with it.
1. The trend is not so easy to change. This is more effective at a larger level.
Most of the time, the current tendency is to short, but the stop loss is often reversed.
At this time, make and observe the conditions for entering the market, and go long. This is the second expectation we have to consider, which is a plan that should be made before opening an order.
On the contrary, when you tend to go long, you should also consider what to do if you are stopped out, whether it is suitable to enter the market at present, whether there is an opportunity to enter the market, and the premise is that your stop loss is outside the effective key position.
2. Do a target for a long time and find out the idea.
The trend of each target is There will be his unique trend. When you have made hundreds or thousands of transactions in one of the targets, you will roughly understand the trend habits of the token, that is, the market sense. This requires a lot of practice and good records.
I hope these will help you on your trading journey. Thank you for your patience in reading~
If you have any questions, you can leave a message in the comment area and I will answer them one by one
