About the mindset control issue when making contracts

First of all, everything starts from "feedback stimulation".

When you were a child learning to speak and do things, when you did well your parents encouraged you, and when you did poorly your parents criticized you, that is "feedback". Being encouraged makes you happy, being criticized makes you unhappy, that is "stimulation". Through feedback stimulation, conditioned reflexes are formed, and behavioral preferences are strengthened.

In terms of making money, the feedback cycle in physical businesses is very slow; farmers plant crops and only receive feedback once a year.

However, the trading market is different; the feedback cycle is very fast, and it is easy to make a lot of money or lose a lot in a short period.

Contracts are even faster than general trading; they are like an "automatic vending machine" where you can get stimulation feedback anytime you want. Therefore, it is easier to develop preferences & addictions under "feedback stimulation".

Next, let's talk about trading preferences.

Why do people have strong trading preferences?

Because once they accidentally made money using that method, after repeating it a few times and tasting the sweetness, they always think about “waiting for the rabbit” to make money using the same model.

Why do some people always try to catch the top, some always try to catch the bottom, some always chase breakouts, and some always think about copying? These methods gave them huge rewards at certain moments, but at other times they lose money every day.

But don’t think that losing money will change people’s habits.

Pain can discourage people from being proactive about that model and lead them to doubt the problems with this way of playing.

However, pain itself is a stronger feedback stimulus than pleasure, which may lead people to another problem, “over-trading”.

So how do you adjust your trading preferences?

It’s simple, do the opposite for stimulation.

If you get beaten up every day for shorting, then go long; after making a few profits, you will taste the sweetness and no longer have a strong preference.

Again, let's talk about over-trading.

Trading is a quick feedback automatic feedback machine. Whether it encourages you or strikes you, it will give you strong stimulation. The more you trade, the more trading there will be, which is why some people are addicted to short-term trading and cannot extricate themselves.

So how do you solve over-trading?

It’s simple, set a "cooling-off period"; exchanges generally have this function, so take a break whenever you trade too frequently.

It's somewhat similar to the process of detoxification.

Finally, let’s elevate the discussion.

What feels good generally doesn’t last and cannot be replicated.

Pleasure is instinctual, but making money requires patience.