Little Brother Explains the Pan: Talking about "The Differences in the Results of the Trading Process"

　　The trader's control and execution of the trading process determines the difference in the results, that is, the same trading system with a positive expected value is used by different traders, and the trading results will have obvious differences. However, winning or losing does not lie in the trading tools, but in the trader's internal power improvement and self-emotional control of the process.

　　In other fields besides trading, there is often an inevitable causal relationship between the learning process and the learning results. For example, if we want to improve our grades better, as long as we work hard and work hard, it is difficult not to be excellent. However, for trading, this causal logic seems to be difficult to establish. Even if you put in 100% effort, you may not necessarily get good results. The important reason is that the trader's control and execution of the trading process determines the difference in the results, that is, the same trading system with a positive expected value is used by different traders, and the trading results will have obvious differences.

　　However, winning or losing does not lie in the trading tools, but in the trader's internal power improvement and self-emotional control of the process. The most common mistake that ordinary traders make is: they only focus on the results, while ignoring the inner growth in the process. This is especially true for traders who are new to the market. Their purpose of rushing into the market is very clear, which is to make money. This kind of utilitarianism will make them pay close attention to the changes in the floating profit and loss of the equity. As the numbers jump, their original plan is easily overturned, and the profits are realized early, but the losses continue. In such a repeated vicious circle, the negative profit-loss ratio gradually increases until the funds shrink to nothing. So if you want to get rid of the bottom line of the transaction, you must fundamentally solve this problem.

1. Improve the quality of decision-making - make a good trading plan

2. Enhance self-confidence - control emotional traps

3. Follow System Signals—Give Up Forecast Bias

4. Control the size of positions - avoid heavy positions

　The above approach can at least allow me to survive in the market, so that I will not be wiped out in a short period of time, and it will allow me to treat transactions with a peaceful mind and hold positions. Therefore, in the process of trading, traders must pre-set the target for risk, rather than pre-set the rate of return.

　All in all, the biggest weakness of human nature is that we always think that we are the smartest one, thus ignoring some simple truths. Trading is the condensed life. We must use actions to control emotions, face everything in a proper manner, let emotions recede on their own, and use a calm attitude to reflect the harmony between people and the market, but this requires long-term precipitation and tempering. However, as long as you have a goal, you must run, and as long as you persist, you will definitely make progress. Believe it, work harder

The more powerful you are, the luckier you will be.