We all know that frequent trading is a taboo in trading. Trading is inherently a probabilistic event. Often the more you trade, the more mistakes you make. Many people always don’t want to let go of any trading opportunity and want to seize every transaction. Opportunity, but it always backfires. He said that he would no longer trade frequently, but the result was slaps in the face...
The root cause of frequent trading is that there is no systematic trading method of its own, no clear trading rules, or the trading rules are not logical enough, and the mind is as muddy as muddy, unable to distinguish whether the market is good or bad, and unable to grasp the market. Opportunities, often all information as a trading opportunity.
Then there is emotional trading. People’s emotions are easily affected by the market and others. Once the market changes, their emotions will fluctuate with the market, or in some order-calling groups, they will be affected by the order-callers or other traders. Make inappropriate transactions. If you don't calm down, you will just follow the trend, and your operations will be chaotic, which will bring you losses.
Finally, there is the problem of mentality. Greed is the culprit. There are too many problems caused by greed, and frequent trading is only one of them. In the market, opportunities are everywhere, and it is difficult for us to distinguish whether it is right or wrong in a greedy state of mind. Most people are afraid of missing opportunities for their own opportunities, so they would rather lose 9 times than let go of that profit opportunity. In the face of high profits, people forget about risks and choose to trade frequently.
Profit is a process event, not achieved overnight. We must learn self-control in trading, learn to trade according to rules, and restrain human nature.
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