1. The fantasy of profiteering
It is true that leveraged speculative transactions can bring huge profits relative to any other industry. Because of compound interest factors, the risk-reward ratio of transactions that can maintain long-term stable profits is even more advantageous than gambling, robbery and drug trafficking. But this does not mean that traders can get rich in the short term. It is not uncommon for such a thing to happen, but the probability of it happening is higher than that of the big lottery. The probability of a jackpot is 10,000 times smaller, and for most ordinary traders, this can only be a fantasy. Before traders start trading, they must have a clear understanding of the risk-reward ratio of trading. Too many fantasies are destined to make you unable to go too far.
2. Holy Grail Fantasy
The vast majority of traders have basically zero knowledge about trading before they start their first transaction. Only after they have had enough of losing money and blowing up their positions will they start looking for and learning some trading skills. The "holy grail of trading" is something that all traders dream of. It refers to all ways or methods that can predict the development of the continued market through a certain price phenomenon with a clear and fixed causal logic relationship or probability distribution state. It must also be the torture of countless huge losses and liquidation, many of them will understand that there is no such thing as a "Holy Grail of Trading", and the market is like a monster that cannot be subdued, hurting leeks time and time again trader. There is indeed no "trading holy grail" in the trading field, only the "advantageous trading system". Through long-term trading, relying on a reasonable winning rate and profit-loss ratio to achieve overall profitability, there is no other way.
3. The Fantasy of Buying the Bottom and Finding the Top
When novice traders are looking for the "Holy Grail of Trading", they are very keen to find analysis methods that can accurately predict the highest point, lowest point, callback point, etc., and imagine that they can enter at the lowest point and escape at the highest point. Take the market completely from one turning point to another. And many "trading masters" are also willing to predict the high and low points of the market. If they can accurately predict the turning point of the historical market, they will soon be promoted to the altar by leeks. The essence of a trading system is not to predict the trend of the market, nor can it predict the direction of the market. It just allows you to do the right thing at the right time, minimize the stop loss and expand the profit. The evaluation of a trading system is not based on whether it is accurate or not. The future market, but to see if it can give a higher accuracy rate and profit-loss ratio. The so-called trading master is not a fortune-teller, but a person who can skillfully and stably master an advantageous trading system.
4. Ask for fantasy
When leek traders are betrayed by newly discovered trading strategies countless times, most people will have the idea that "I am not born with this material". They can more or less see, hear about or be fooled by others. There are indeed some master traders who are constantly making money and making a lot of money. Thinking about the blood and sweat I lost before, I really couldn't be willing to stop here, so I shifted from pursuing the "Holy Grail of Trading" to pursuing the "Master of Trading". They linger on various trading websites, forums, blogs, chat groups, etc., looking for clues of "trading masters" everywhere, and seize any opportunity to ask the "masters" about current trading opportunities or when their losses will be paid back. . Some people join various "calling groups" or even live broadcast rooms, follow the instructions of this teacher and that teacher, and finally find that they are just dolls who have been fooled by others. Master of Fudge". In this world, it is simply impossible for things and people to bring others to do business for free. Give up this fantasy completely.
5. EA Fantasy
EA is more popular among leek traders than "trading masters" in the novice trading group, because "trading masters" are rare, and trading EAs are everywhere. Open the trading chat group, and you can see many people asking whether there is a free, stable profitable, and easy-to-operate trading EA system every day. Of course, some people are using the so-called advanced EA with an annual rent of several thousand or even tens of thousands. This is all wishful thinking. The essence of EA is an automated trading strategy. It is not even a trading system. Those who buy EA are just buying a strategy, and you still have no way of knowing what strategy it is. Any clever trading strategy must be placed in the hands of the right people to make stable profits. Because there is no 100% accurate trading strategy, an experienced trader can artificially filter out trading signals that are obviously not good opportunities, but computer programs cannot. In any case, the computer program will faithfully implement the established strategy. Once you encounter such an obviously unreliable trading opportunity, a retracement can destroy most of your profits or even make you liquidate. Entrusting the transaction to an EA is a worse operation than looking for a "trading master" to copy the order, because you don't know how to lose money when you lose money.
6. The "should the market" fantasy
After the leek traders have been tortured, they have strengthened their confidence in making orders. They don't believe in "trading masters", let alone expensive trading strategies, but only believe in themselves. Faced with the ever-changing trading market, these traders kept telling him like a little man in their hearts, what should happen to the market, it is too high now, it should be pulled back, it is too low now, it should rebound So he followed his "should" to operate, and of course the result was still tragic. At the other end of the trading software, there seems to be a monitor watching him. When he should rebound or pull back, he will continue to break through as soon as he places an order, and he is specially trying to make trouble with him. Of course, there is no need to argue with a leek in the trading market, but it will definitely not follow the "should" of a leek to develop.
7. Reverse fantasy
Many leek-type traders will take it for granted that the trading market is divided into three states: rising, falling, and turbulent, and then they hear analysts or other news saying that it is not suitable to short at the moment, so they immediately enter the market and open long orders. In fact, there are only two states of the market that are suitable for operation and not suitable for operation. Whether it is long or short or volatile, as long as the price pattern is clear, it is suitable to operate. If the price pattern is not clear, it is not suitable to operate. Price patterns are less clear. The "Wall Street ghost" said that when I suggest you not to go short, it definitely does not mean that you can go long, and leeks always like to add their own fantasy to make a reverse push, and they are finally taught a lesson by the market. This is also the reason why some leek traders still cannot make money even if they find a reliable teacher to bring orders. They always follow their logic to reason the advice provided by the teacher.
8. The “participating market” fantasy
The various fantasies of leek traders about market conditions come from the fantasy of having to "participate in the market". It is true that you can only make money if you open an order and participate in the market. Compared with losses in transactions, holding short positions is more difficult for leek traders to accept. In order to alleviate the anxiety of "missing a wave of market", most leek traders choose to ignore the risk of participating in the market and may cause medium and large losses, and eagerly want to participate in the market. Most of them don't know and have never learned a reliable trading strategy, so they use their imagination to discover trading opportunities in the market. In the seriousness of leek traders, trading opportunities are everywhere in the market at all times, and they will soon find out Is this an opportunity or a trap.
9. Struggle for fantasy
Many old leeks who have suffered from trading losses and liquidation will fall into the mentality of gamblers. Since they will lose and lose money no matter what, it is better to fight hard. There is still a lot of work, and there are almost no tender models. As the position increases, your trading risk increases exponentially. When you use half or even full position for leveraged trading, your winning rate has dropped to almost zero. It is purely an illusion to gain huge profits with heavy positions.
10. Compound Interest Fantasy
The exponential growth of fantasy account returns in the form of compound interest is a daydream of almost every trader. It is true that the huge profits of speculative trading are largely caused by compound interest, but it must be realized through a long period of trading under the premise of ensuring stable profits. It can only be a daydream to imagine that four hundred dollars will become eight hundred in one month, one thousand six hundred in two months, and three thousand two hundred in three months.
11. The fantasy of paying back the bills
If you ask what are the bad behaviors in trading, heavy positions are one, and carrying orders is another. Because there is no mature and stable systematic trading strategy, leek traders face more opportunities for losses than profits. Most leek traders have no concept of stop loss at all, and they don’t think about where the stop loss point is when placing an order. When a loss occurs, they can only watch the loss figure change in vain without taking any measures. What's more, in the face of losses, it seems that they have found better opportunities to build positions, and they continue to increase positions on loss orders. In the end, a small loss turned into a big loss, and the trading account was cut in half or even liquidated. I have seen many traders in the trading group say that his account has thousands of dollars, which can resist the shock of tens of dollars in gold. What I want to say is that the numbers in the trading account are used to provide you with trading opportunities, not to carry orders. Originally, if you stop the loss reasonably, you can have a hundred chances, because there is only one chance left to carry the order. Even if you fight back the loss once or twice, what about the third and fourth times? There is only a dead end for making orders, and paying back is just a fantasy.
12. Manual Stop Loss Fantasy
Some leek traders know that stop loss is necessary, and they are not willing to accept stop loss, but they will not calculate and set stop loss in advance, but say that I will stop loss manually. Manual stop loss is just an illusion. First, you cannot accurately calculate the specific stop loss amount. When you encounter a fierce market, you will have lost a lot by the time you start; second, you cannot control your psychology. Many times your heart will stop you You stop the loss and let the loss get bigger. Therefore, manual stop loss is a very dangerous thing, and it is no better than stop loss. There is another kind, although the stop loss point is set in advance, when the loss occurs, leek traders pull the stop loss point farther, always imagining that a few more points of space will be safer. Breaking the position, its space is beyond your imagination, and your operation of extending the stop loss position has no meaning except to increase your loss.
13. Pocket Pocket Fantasy
Contrary to recalcitrant resistance after losses, leek traders tend to take profits as soon as possible when facing profit orders. If you come out, you can't call it "safety in your pocket". Premature understanding of the profit order is actually giving up a profit opportunity that was hard to find. You either join the follow-up market, which is your entry point is not so ideal, or look for new trading opportunities, and the trading There are many opportunities to make a profit in the market, so early profit taking will greatly increase your number of transactions, and at the same time reduce your transaction winning rate and profit-loss ratio, which will greatly affect the stability of your trading system.
14. Martin Strategy Fantasy
There are many trading strategies on the market, why treat the Martin strategy alone as a fantasy? The Martin strategy actually represents some kind of fantasy that leek traders connect themselves with the market. Simply put, leek traders always think like this, I have lost ten times in a row, and it is time to make a profit next time, right? I have liquidated my position 20 times. Should I make money by covering up my position this time? Just like many experienced gamblers in the casino will pass on their experience to novices, they have played eight big hands in a row, and this round has been set to be small. In fact, it is not uncommon for traders to not have a single profitable order throughout the year. It also happens from time to time that 28 big hands are thrown in a row. The behavior of a single trader has nothing to do with the price behavior of the market. The dice in the casino have nothing to do with the gamblers' bets. After one hundred times, the probability of the one hundred and one big one is still 50%. Probabilistic things happen to others is a probability, and it is inevitable to happen to oneself. If you can't understand this, you can only continue to daydream about Martin's strategy.
15. Big Money Fantasy
Leek traders have a strange idea that accounts with large funds are easier to operate. The so-called good operation is actually better to carry orders. If you use a large account to place a small position, even if the market immediately reverses, leek traders can wait for death. The final transaction list is full of profit orders, which can show the trader's strength. superb level. There is also a kind of trader who can’t understand what he said. When talking about losses, he said that he has a lot of money, and he doesn’t care about how many positions he exploded. It seems that this is the demeanor of a successful trader. To put it bluntly, most leek traders have never seen large funds, nor have they operated large funds, and their understanding of large funds is fantasy. Of course, there are also some well-funded leeks, who rushed into the foreign exchange market with tens of millions of net worth, and disappeared without a trace without even a bubble.
16. Trading Genius Fantasy
There are too many profits in speculative trading. Once successful, they will quickly accumulate hundreds of millions of net worth, so that when ordinary players observe successful transactions, they will subconsciously add a sacred halo, thinking that these successful people are not stars. Thinking about his horrible trading record, he began to suspect that he was just a fool in the mud of the trading world. In fact, many successful traders are not financial geniuses. Many of their experience and qualifications are not as good as ordinary people, but their opportunities and their own efforts are different. It's like traveling. Even if you drive a small broken car, you can reach your destination as long as you walk the right way. On the contrary, if you drive a high-end car, if you take the wrong way, you will never reach your destination. In the words of Buddhists, trading is the "Dharma Hongren", and successful trading methods create successful traders, not the other way around. As long as you can learn a mature and reliable trading method, or develop your own trading method, you can succeed, and everyone can.
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