Trading is a conversation with yourself. If you are complicated, trading will be complicated; if you are simple, trading will be simple.
Emotions are something that accompanies people throughout their lives and cannot be eliminated. Otherwise, they will become vegetative. It is difficult to integrate knowledge and action (not to mention the issue of deep knowledge and shallow knowledge). There is a layer of membrane in between: emotions.
If there is no emotion, you can do it if you know it. This is software, quantitative, and programmatic trading.
As a subjective trader, people will have emotional fluctuations when trading, which will cause internal friction. People with less emotions in trading are destined to make more, or make more easily, or lose less than those with more emotions.
Emotions, or getting carried away, can easily destroy all pre-planned plans.
For most people, temporary desires or fears are the direct cause of emotions.
If you want to make money outside the plan and want to lose less money than you should lose within the plan, you will have emotions, fall into mental friction, and lose your footing.
Therefore, you must have a plan in advance and think clearly about what money I want to make and what my price is.
This plan is the trading system.
The trading system is our passbook. If the number on the passbook is 10,000, the bank will not give 20,000. If we want to withdraw 20,000 from the passbook with 10,000, it means that we want to make money that has nothing to do with ourselves in trading, and we start to rob banks. We may succeed in robbing banks several times in trading, but it is precisely because of such fluke success that you will continue to do such stupid things. The final outcome is that you will inevitably be shot. You are robbing banks, who else will be shot?
If you want to make trading simple, you must first become simple, not be taken over by emotions, and not become a slave to dopamine. In fact, you don’t want to make profits beyond your ability, and you are not afraid of losses within your ability; don’t be demanding, don’t be delusional. This will make it simple.
