Why is it difficult to succeed in trading?
Because there are two big mountains in front of us!
1. Trading psychological traps:
A. When making a profit, you tend to stop when you are ahead, and you hate risks and uncertainty.
B. When losing money, you tend to let go, expecting that taking risks can avoid certain losses (breaking the jar).
C. Overconfidence, thinking that your analysis and expectations are absolutely rational, attributing accidental success to your own ability, and failure to external factors, and emotional drive cannot correctly understand the real market.
D. Overreaction, thinking that it will fall if it falls, and it will rise if it rises, and the expectation of the market is too far away from the real value, and turning a blind eye to the risks that are gradually coming.
E. Fear of losing control, like the sense of control, so you leave the market when you see something bad, enter the market when you see something good, trade frequently, and cannot hold good orders for a long time.
F. Regret, always think that the operation you think of is the plan you have thought of, and regret because you did not execute it.
G. Greedy, think that you are very accurate, want to double your efforts, and look further.
H. Jealousy, when seeing others making money and you don’t, you get very impulsive, as if you have lost money.
I. Hope, always wanting the price to go up as soon as you buy and go down as soon as you sell, and don’t want to wait.
J. Despair, thinking that your trading system is not good, you are not good enough, and want to change or leave. To overcome psychological problems, you need to feed with real trading and money, but there are ways to minimize these costs.
2. Trading technology:
Technical aspect & fundamental aspect. Fundamental aspect - studying supply and demand, you need to have the ability to judge the truth from the complicated and redundant information, and you also need industry background and physical inspection.
Only suggest to understand. Technical aspect - indicator school, pattern school, naked K school, wave school, volume price momentum school... Main attack. Regarding trading technology, I want to say that learning is increasing day by day, and losing day by day for the truth.
How to understand it? All indicators and patterns are formed after the price. They are just historical displays. They will repeat but not copy. You don’t need to learn too many technical tools. Just understand them roughly, and then select a few of them for special research. Too many and too chaotic!
