1. Understand the truth of systems thinking
Trading is a game of probability. Like flipping a coin, the chances of heads and tails are 50/50, and neither of us can win. However, without my knowledge, changing a lead-filled coin would produce 49 heads and 51 tails for every 100 tosses.
You now have a license to "print money," call it "tail trading thinking." You bet tails forever, and in the end, you'll win all my money.
Trading thinking gives you a favorable "bias", and anything can happen. Let's look at: pattern breakouts, trend following, Fibonacci numbers, moving averages, channel following, oscillators, Bollinger bands, oscillators, opening gaps... Actually you are relying on a certain bias
. Essentially "when x happens, y usually follows". Trading thinking is to help you identify high-probability opportunities, build positions correctly, protect your funds, and increase your profits at the same time.
All traders have "good" days and "bad" days. Some days you make small profits, other days you will suffer small losses. Generally speaking, one or two days a month, you will make a lot of profit. As a trader, that's the money you should be making, not 9 to 5. The problem is, you never know when the "big" deal is coming.
Trading is all about managing risk and obeying the oldest law of the universe: probability.
2. Controlling investment is the way to long-term success
As a trader, one of the biggest mistakes you can make is to invest too much money in one transaction. The more invested you are, the more emotional stress you will have, which can eventually overwhelm you.
Most novice traders build heavy positions, hoping to get rich overnight. In short-term trading, the entry and exit are very fast, the number of transactions is large, and a few large losses will quickly eat up your funds. A good surviving short-term trader will only invest a very small percentage of his capital on any one trade.
Overconfidence can lead to enormous risks. "Hey, heads have come up 10 times in a row, let's bet half our bankroll on tails and take a gamble."
The problem with this "sure" trade is that:
1. The market rarely has to go in a certain way, but the probability trend;
2. Others also think that it is certain and actively participate, so when they make mistakes, they aggravate the mistakes (such as more flips, more flips).
By risking a small percentage of each trade, you'll be more relaxed and the trades will handle better.
3. How to control
your emotions Have you ever thought of losing money in your subconscious mind?
It is easy to see self-destructive behavior in the market. When the price dances around in front of your eyes, it grabs you tightly, as if it is teasing you.
You must avoid emotional trading. If your blood boils, you can have the worst experience possible.
Don't bring emotions into trading. Remember that the current transaction is just one in a long series of transactions. Keeping this in mind, never get too invested in any one trade.
You have to treat yourself like a professional trader. At the beginning of each trading day, allow yourself a few minutes. Close your eyes and watch the market imaginatively, as if seeing live charts on your computer screen with prices spinning up and down...
Watch yourself enter a trade and feel relaxed. You are alert, but calm and completely unemotional. Watch how the price moves after you enter, how it approaches your stop loss.
Add
