"Fatal trading misunderstanding: Don't let fantasy ruin your wealth"
In trading, the biggest detour is to immerse yourself in fantasy. Many people think that the market will go according to their expectations, but reality always slaps them in the face. Today, let's talk about why fantasy can make traders fall into the abyss and how to avoid this common mistake.
1. Fantasy makes you ignore reality
Many people always have good expectations before entering the market, and they imagine that the market will always follow their own analysis. Especially when the market just starts to rise, they will think in their hearts, "I will definitely make a lot of money this time." But the fact is often that the market never plays by the rules. The market may take a sharp turn for the worse at the slightest sign of trouble. Living in fantasy will only make you ignore the real fluctuations of the market and miss risk signals.
2. Clinging to fantasy and missing stop loss
When the market is not as expected, many people are unwilling to admit that they are wrong. They always think that "if they persist a little longer, they can turn the situation around." As a result, they get deeper and deeper and eventually miss the opportunity to stop loss. This "fantasy of getting back the money" mentality will only lead to greater losses. There is no absolute sense of security in the trading market. At any time, you should face the facts calmly and adjust your strategy in time.
3. Reality is crueler than fantasy
Market fluctuations are cruel, and fantasy will not change the results. Those who live in fantasy always feel that a bull market is coming or a rebound will occur soon, but this subjective expectation often puts people in a passive position. You can never fully predict the market. The only thing you can do is to follow the rules and stay calm.
4. How to avoid living in fantasy?
Learn to analyze the market rationally, make a plan for each transaction, set clear stop loss and stop profit targets, and avoid blind optimism. Trading is not speculation, nor is it a game of luck. Only by operating steadily and carefully can you go further. The market will not follow your fantasy. What you need is to make rational decisions based on data and trends.
The biggest detour in trading is to live in fantasy and be unwilling to face reality. Only by learning to accept the uncertainty of the market, abandon fantasy, and make rational decisions can you move forward steadily in trading.
