It has brought great wealth to a few, but failure to the many.
The market tells us an invariable truth with the most simple facts: the trading market always follows the 80/20 law.
A few people must be in a steady state of profit, while most traders can only swing on the edge of profit and loss.
So how do we avoid being on the losing end of the trade?
We talked to a few people and came up with the following three DOS and don ‘ts.
You must take a look.
1. Doubting your trading system is the beginning of a trading failure.
Most of us have an irresistible nature to doubt the system.
It is this deadly nature that ultimately makes our trading lives difficult.
Operational know-how, with little insight into the way previous traders thought.
Trading behavior may vary, but intra-trading skills can better demonstrate a trader’s skills. Many people are prevented from entering successful investment markets because they are suspicious and unable to adhere to good trading practices.
The market is a nonlinear market.
No one can predict the market completely, and no one can grasp all the profits of the market.
The market is always changing, always forcing us to change our trading strategy, when it changes, we will lose.
No trading system can fully explain the market, let alone attempt to beat it.
The only thing we can do is consistently stick to our trading system.
Successful traders always stick to their trading system and have confidence in it.
They always stick to their systems, even when there are short-term losses and withdrawals in their accounts.
2. The underlying causes of greed and fear lie in the confusion of trading concepts and unreasonable fund management.
In our actual trading process, two emotions always dominate our trading – greed and fear, even determine the success or failure of our trading.
Trading is life in miniature.
People in the trading world are also tempted and driven by fear and greed.
This sentiment is amplified by the fact that the world of investment trading is a naked one.
As a result, our thoughts and emotions are completely lost in fear and greed.
The exchange market is a never-ending exchange market.
You have the opportunity to earn high returns anywhere.
But the reality is that most of us can never control our inner greed.
Having lost a reasonable entry opportunity, we blindly chase up and down, charging into the market without the system signaling entry.
The consequences of greed are likely to cause you to lose money and become depressed.
There is another situation that leads to our fear and greed, and that is the improper use of funds.
Heavy position, full position, constantly add to the position will make their operating capital to bear too much risk.
This gambler’s operation can only lead to two outcomes: either a windfall or a bust.
Therefore, due to extreme psychological fear, when the market does not reach the required stop-loss position, traders will quickly close the trade.
In trading, losses are simply the costs and prices we have to pay in order to win the final victory.
It is as natural as a person’s breath.
However, after a few consecutive losses, many investors tend to abandon good trading systems for fear of an unpredictable future.
Trading is a discipline that seeks a balance between reward and risk.
We should neither blindly use heavy stores, nor always use light stores.
Both qualitative and quantitative, in order to guide the actual operation.
With changing trading systems and profits, trading positions are the essence of fund management.
3. 95% of investors are indisciplined not simply because of execution, but because they don’t fully know how to refine the details of their trading to suit their trading style.
The first thing we should do before entering the trading market is not to pursue a high-winning method, not to find a near-perfect trading system, but to understand ourselves.
We should consider and judge whether we are suitable for the trading market, what kind of trading mode we are suitable for, combined with our own characteristics.
A good trading system is the starting point, execution is the difficulty, and the actual trading strategy is the key.
By constantly perfecting the details of the trading system to suit my own trading personality, my execution has been greatly improved.
When trading, there is no psychological pressure, trading becomes comfortable and natural.
True traders can often use a trivial trading system to achieve dazzling results.
A successful trading system is not a mystery, but how to make a profit from it is the real secret.
The ability to apply the system correctly is far more important than the system itself.
When we get a profitable trading system, it can’t be fully implemented in practice for a variety of reasons.
What influences the execution of a good trading system?
The answer is: the way is not important, nor is it the only way.
The important thing is to have a strong will and be able to consistently adhere to your trading beliefs.
Technology is only a minor obstacle to success.
The analysis and study of the inner skills of trading is the most important thing in successful trading.
The key to successful investing is not the trading system, but the ability of the trader to implement the trading system thoroughly.
The key factor that controls the success or failure of trading is belief.
The size of self-confidence determines a person’s achievement.
A man’s achievements usually do not exceed his self-confidence.