No matter it is trading or gambling, if you make a profit as soon as you enter the door, and it is a huge profit, some people call it "newbie luck", but I prefer to call it "MG luck", because if money comes too quickly and too easily, some people who have no self-control will be lost, their view of money will be distorted, they will no longer look down on small money, and start to trade with heavy positions, which will enter a vicious cycle of losses.

An important lesson to learn before entering the financial market is risk anticipation.

You can ask yourself, how much money do you want to make through trading? Is your goal to increase your assets, or to make a small profit with a big investment?

If you lose money on a trade, will it have an impact on your own life?

Are you able to stop losses in time due to your personality, or do you have no self-control at all?

After asking these questions, we can decide whether to enter the financial market.

So why do the vast majority of traders lose money?

1. Because of the particularity of the financial market.

I believe many of my friends have heard of the 28 rule. For example, in the current wealth distribution in our society, 20% of people control 80% of the society's wealth; 80% of people with procrastination will put today's things off until tomorrow, and 20% of people will put tomorrow's things off until today; and 20% of people will persist when faced with difficulties, while 80% of people will give up when faced with difficulties.

The 28th Rule is everywhere in life and determines what kind of people will succeed and what kind of people will fail.

The financial market is even crueler than real life, because there are no rules in this market, only human nature, so the financial market even exceeds the 28 rules, and the number of people who make a profit may be less than 10%. In the face of money, most people want to make a fortune with a small investment, and want to turn their fortunes around through trading, so those who have a stable personality, strong self-control, low profit expectations, and have funds in hand are silently harvesting these people who are eager for quick success.

Some people may say that the world is inherently unfair, and those who hold funds can remain stable only because of the capital.

Actually, it is not. We small investors with small funds can also have low return expectations and take our time, but how many people are anxious to make a profit? Want to make a small investment for a big gain? Don't treat money as money, thinking that at most they can just gamble and if it's gone, it's gone?

So this has nothing to do with the amount of capital, but with people. In the financial market, human nature is the rule.

2. Dominated by human nature.

As mentioned before, there are no rules in the financial market, only human nature. Trading is something that goes against human nature. Human nature is greed for comfort, aversion to risk, fear of loss, feeling that one is better than others, aversion to effort and learning, lack of patience, etc., which will be infinitely magnified in trading.

There is a saying in the trading industry that the mentality accounts for 70% and the technology accounts for 30% of the profitability of trading. In practice, it seems that it is not difficult for traders to see the market correctly, but it is very difficult to complete this wave of market and make a profit. Why? Trading is like a free game. It seems that the threshold is low and it does not cost money, but in fact, some hidden costs are contained in it, and human nature is played clearly. We must have risk expectations before thinking about profit. #荣耀时刻 #崛起