What is the true meaning of futures trading? I think this is a question that every trader involved in futures needs to give a clear answer. Some people think that the true meaning of futures trading is: use small to make big gains.
The "big big with small" mentioned here does not refer to the leverage of margin we usually talk about, but the question of "how to use small losses to fight for large profits" in futures trading.
The process of futures trading with small and broad futures itself is a process of human nature cultivation
Human nature is the key to the success or failure of futures trading, and it is the root. No matter how high a trader's level is, the accuracy of predicting the market cannot reach 100%. What should I do? Rely on principles to make up for the lack of technology, but no matter how complete a trader's principles are, if they are not strictly implemented in transactions, they will be useless ,Meaningless. Why are there situations where some principles cannot be implemented? This is a question of human nature.
People who have been engaged in the practice of futures trading have a common experience, that is, "talking about wars on paper" and "real swords and guns" are two different things. When you are not trading, you tend to be more accurate when looking at the market, feel good about yourself, and have a good attitude. Why? Because winning or losing has nothing to do with you.
When it comes to real trading, the other side of human nature is revealed, that is, the thought of "wanting to win and afraid of losing" fills people's minds. Therefore, the plans formulated in advance and the principles formulated in advance have long been thrown out of the sky. As a result, they often make small money, lose big money, and eventually lead to failure.
Trading must put emotions aside
You are happier when you are profitable, you feel happy and relaxed. Just imagine, if you care about or pursue this kind of psychological pleasure when trading, the negative effects will also be obvious, that is, if you think about the psychological feeling after you make a failed transaction, you may try to ignore it. Such a bad feeling, but when you ignore enough of these deals, you're probably broke.
You feel powerful when you're happy - it's undeniable that joy is a good thing, but the problem is that just because one or a few of your trades are successful doesn't mean you have control over the market.
Feeling in control can give you the illusion that your decisions are the right ones. The failure of a transaction may not match your illusion of strong "control", but you will try to use your "power" to change this failed transaction, and it is a very regrettable fact that you do not study your own loss-making transactions.
The reason why Milu can become an excellent football coach is largely because he is a master of psychological control. The same is true for the NBA gold medal coach Fei who led the Bulls to two three-peat championships and the Lakers to two championships. Mr. Jackson, he is known as the master of Zen Buddhism. In fact, in addition to their extraordinary willpower, they also mastered an effective method of psychological control, that is, positive psychological suggestion.
Self-psychological hints can be seen everywhere. For example, when you do something, if you can say to yourself: "I can do it." This kind of hint is a positive hint. If you say to yourself dejectedly: It seems that I can't do this, so let's give up. "
This is clearly a negative implication. For a trader, in the face of emotional fluctuations, he can often make psychological adjustments through self-suggestion. Whether you are facing the impulse of temptation or the blindness of fantasy, or the fear of falling and the loss of failure, you can Actively hint to yourself to soothe your mood, avoid excessive excitement, tension, annoyance, pessimism and other emotions, and adjust yourself to a rational trading state, so that you can make trading decisions calmly and correctly.
In this market, you have no opponents and no enemies. If there is one, that person is yourself! If you can defeat yourself, you can also win in this market, if you are defeated by yourself, then the market will only leave you disappointed!
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