A very good AI article, I recommend you to read it: Applying the concept of "letting go" in trading means reducing emotional interference through rationality and discipline, and making clearer and more effective decisions. Here are some methods that can help you achieve "letting go" in trading:
1. Cut off: reject unnecessary information and temptations
Cut off unnecessary market noise: In trading, information overload and short-term market fluctuations can easily cause panic or greed. Selectively receive information and filter out market news, social media opinions, etc. that are useless for trading decisions.
Reject impulsive trading: Avoid making impulsive buying and selling decisions due to short-term market fluctuations, others' suggestions, or sudden emotions. Stick to your trading plan.
2. Letting go: Abandon unfavorable positions and incorrect decisions
Decisive stop-loss: When trading decisions are clearly wrong, do not cling to losing positions. Stop losses in a timely manner to avoid emotional entanglement and greater losses.
Let go of emotional attachment: Traders often have emotional attachments to certain assets or positions, especially those that have previously been profitable. Abandon the obsession with these emotions and judge whether to continue holding or exit based on objective standards.
3. Distance: Keep a distance from greed and fear
Rational rather than emotional: Trading often involves emotions of greed and fear, leading to greed during upswings and reluctance to exit, or fear and blind selling during downturns. Stay calm, view the market objectively, strictly follow trading strategies, and avoid allowing emotions to dominate decisions.
Simplify strategies: Overly complex trading strategies can lead to entanglement and hesitation. Choose simple, effective trading systems, keep the trading process straightforward, and reduce psychological burden.
Practical advice
Establish a trading plan: Set clear entry and exit rules, and risk management measures in advance, and strictly adhere to these rules to avoid changing plans due to short-term market fluctuations or personal emotions.
Regular review and adjustment: Periodically review your trading records, analyze which decisions were based on emotions or incorrect information, and reflect on how to avoid the same mistakes next time.
Maintain mental balance: Learn to control emotional fluctuations in trading, cultivate a mindset of 'accepting gains and losses as they come,' so that even in losses, you can learn and continue to grow.
The 'decluttering' in trading is not about giving up trading, but about helping you to be more clear, decisive, and rational both psychologically and operationally, making trading simpler and more effective, ultimately achieving long-term stable profits.