Trading is an amplifier of emotions; you will be frightened by your own weaknesses
The panic of a sudden crash
The heavy investment of putting all your chips in
The difficulty of trading
Is precisely because we are human, and being human means we have emotions
Emotions severely affect us in trading, but emotions are also the source of creativity
Some say that truly excellent traders are emotionless; I think that's not entirely correct
Excellent traders have the ability to combat emotions and a mechanism for self-management under emotional stress
This is also part of the trading system
Every trader knows that good trading requires a system
But most people cannot tolerate a system that incurs losses
When losses occur, they constantly modify references, and in the end, even key parts that once made money are altered
Then the trading curve gradually declines in an unstable spiral
Even the legendary hedge fund manager Simons has said, "If you don’t have a long enough time to follow your system, to let it work and profit, then no trading system will work"
You should know that this old man is a printing machine on Wall Street, a person who solved trading with mathematics
Speaking of this old man, his Medallion Fund's return rate is nearly unmatched and is based on constantly evolving quantitative models
Such a system is equivalent to having no emotions, but the downside is that it cannot manage large funds, since this kind of cheating arbitrage has limited capacity in the market
Therefore, a truly successful system needs to be consistently operated and must be allowed to fail; the key lies in executing with iron discipline after a failure
Only through sufficiently long historical backtesting can one understand the patterns that emerge
Find your trading advantages in historical searches, maintain the advantages, and discipline must be applied to disadvantages
Finally, a good system is definitely not the one with the highest win rate
What determines profitability is the magnitude and frequency of losses and wins, not just the win rate
Whether one can maintain and operate their trading system well and for a long time is key
All serious consequences caused by emotions are also reasons for not having a strictly executed system
#情绪管理 #交易心理 #人性的弱点