Most people’s trading mentality and loss situations, see how many of them apply to you?
1. You will lose money as soon as you enter the market. You see others making 5 times or 10 times the profit, but as soon as you enter the market, it seems as if the entire market is targeting you. The result of chasing highs and selling lows is that others have already reaped the profits, and you just enter the market. If not you, who will you lose?
2. You make money as soon as you enter the market, but end up losing money when you exit. You don’t know how to sell the green order at the high point, and all of a sudden the profit is lost, or you even lose money. You could have traded your bicycle for a motorcycle, but in the end you only make enough to buy a cup of coffee.
3. When the market goes down, you rush to buy at the bottom, but it keeps going down. When the market reaches a high point, you rush to short, but it takes off. Then you keep holding on, getting trapped, and adding to your positions. Your positions are getting bigger and bigger, and you are under greater financial pressure. When you are freed from the trap, the bull market has nothing to do with you.
4. Frequent trading and frequent position changes. When the prices of stocks bought by others go up, the prices of stocks you buy do not. Then you sell at a loss and buy other people’s stocks. As a result, when you sell, the prices go up, and when you buy, the prices stop going up. You start to doubt whether the market is always targeting you.
5. The two major emotions in the trading market: greed for profits and fear of losses. You made 5% every day in the first three days, but every time you exited the market, the profits flew away. You always regretted that you should have held on for a longer period of time. Then on the fourth day, you didn’t run away even though you made a profit, but as a result, a profit-taking directly lost all the profits you made in the past few days. Several consecutive losing operations will hit you hard.
6. You have no judgment of your own about the market, and you enter and exit the market too casually and hastily without any basis. You accidentally see a strategy on the Internet and think it makes sense, so you follow it, or you see someone else post an order in a group and think you can make money so you follow it. You have no plan for this kind of transaction. You don’t know the trading logic behind others, whether they have already arranged it in advance, or even whether they are cooperating with the banker to make money. The time you enter the market is when they are exiting, so you just happen to be delivered to the door.
So how do you solve the above problems? If you want to make money in the market, you need several elements. Do you have them all?
1. Have a complete trading system and trading strategy
Every trader cannot guarantee to make every trade right, nor can they predict and determine the trend of the market, but having a complete trading system can guarantee the success rate and profit rate of the trade after a certain number of trades, and ensure the overall profitability of the trade through strict risk control. We do not speculate on the market or judge the trend. We rely on this trading system to formulate and output complete trading strategies to achieve positive returns.
This trading system has been verified for at least 3 years, with an average of more than 100 transactions per year (the total number of reviewed transactions is not less than 300), and has been involved in actual trading for more than one year and is profitable. This determines our ability to deliver stable profits to everyone.
2. Reasonable position management and stop loss logic
Divide your capital into several parts and allow a certain amount of normal losses. Every trading system will have a loss cycle. This loss cycle is a great test for traders. Only by using reasonable position management can you hold on to the order when you lose money, without fear in your heart. Overcoming the fear in your heart is the only way to turn the unknown into the known. You are not afraid of setting stop losses normally. You may make a profit once after losing three times.
3. Rational trading mentality
If you don't pursue getting rich quickly, don't carry large orders, and don't have a margin call, you have already outperformed more than 90% of people. Just imagine, a 5% profit every day, the compound interest for a month is also quite considerable. But if you have a margin call once, then your chances of turning around will be further and further away from you.
I hope this article can help you. Let's encourage each other. I wish that in 2024, we can accumulate soil into mountains and set the prairie on fire! The contract is turned over every day! The spot market is full of profits!
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