Trading is essentially a self-dialogue of the mind. When our hearts become complicated, trading will also become complicated; on the contrary, if our minds are clear, trading will become simple and clear.
Emotions are innate to human beings. They are like a veil that often hinders us from achieving the state of unity of knowledge and action. In the world of trading, if there is no interference from emotions, we can quickly and accurately execute what we know, which is as efficient as software, quantitative and programmed trading.
As subjective traders, we will inevitably be affected by emotional fluctuations during the trading process, resulting in internal friction. In trading, those who can control their emotions and stay calm can often make more profits or lose less, and their trading journey is also easier.
Emotional out-of-control, or impulsive, often leads us to destroy the original plan. For many people, temporary greed or fear is often the direct cause of emotional out-of-control. When we try to make more money than planned, or try to avoid planned losses, we will fall into the vortex of emotions and lead to trading errors.
Before trading, we must make a clear plan to clarify our profit goals and acceptable loss range. This plan is our trading system. It is like a passbook that clearly records our available funds. If we try to trade beyond our funds, it is like trying to withdraw more than our deposit from the bank, which is impractical and extremely dangerous.
In order to simplify the trading process, we need to simplify our mentality. We need to get rid of the shackles of emotions and not be driven by greed and fear. We should focus on our own capabilities and target range, not pursue profits beyond our capabilities, and not be afraid of reasonable losses. Only in this way can we remain calm and rational and succeed in trading.
If you don’t know how to layout next, don’t know what coins to buy, and are confused, you can check my homepage profile, and I will share more relevant information and communication opportunities free of charge.