How do you handle when you're in the "wrong trade"?

In the trading market, most investors are in a stage of struggle. Few people can achieve stable profits. They keep making mistakes but don’t know the summary. In the end, they start to doubt whether they can make money. It may be that the method is wrong. I'm making some bad deals. In fact, the so-called wrong transaction is the wrong judgment of the right time, and entering the market rashly at the wrong time. To sum up, it is nothing more than the following reasons:

Lack of direction: Lack of the ability to judge the macro trend of specific trading varieties, unable to read monthly charts, weekly charts and daily charts. Trade against the trend on specific operating varieties, that is, go long in a downtrend or short in an uptrend. The correct approach should be: go long in an uptrend, short in a downtrend, and short in a no-trend market. Note that the trend here is at least the trend indicated by the daily chart, and the direction must be consistent with the medium-term trend indicated by the weekly chart and the long-term trend indicated by the monthly chart.

Lack of patience: Violation of the "rule of holding profit", that is, "long-term positions cannot be closed if the large-cycle trading system does not send out a signal to close positions, and short-term positions cannot be closed if the small-cycle trading system does not send out a signal to close positions." Although they can identify major trends, they lack the ability to move like a mountain, and lack enough patience and confidence. They always end profitable positions prematurely and deprive them of the opportunity to fully develop. Traders must establish a large-cycle trading system based on the large-cycle K-line chart (such as the daily chart) as the basis for medium and long-term entry and exit.

Not refined enough: Lack of the ability to judge the microscopic trend of specific trading varieties, unable to read 1/15/30/60 minute K-line charts, lack of ability to correctly grasp the timing of buying and selling, always chasing long and short, chasing ups and downs, losing ground in advance and retreat ,full of mistakes. Although this situation has little effect on medium and long-term positions with the right direction, it will cause large losses in margin trading. Traders must establish a small-cycle trading system based on the small-cycle K-line chart as the basis for short-term entry and exit.

Forced trading: Lack of wisdom to distinguish "where does the profit come from", and does not understand that all profits come from the gift of the market. Winning is known but not done. It is impossible for anyone to try to force a profit regardless of the market. Traders can only follow the trend, and should wait patiently for all the conditions to become favorable to them, find the critical point of price change with the greatest chance of winning, and then follow the "law of certainty" to start.

Frequent trading: Lack of ability to distinguish between temptation and opportunity, fear of missing opportunities, even thinking that opportunities are everywhere, lack of ability to get out of the evil temptation of "day clutter", leading to "frequent trading" under the guidance of unrestrained and no general direction ". The result of frequent trading is the same as that of forced trading, that is, multiple small losses turn into big losses.

Excessive trading: Because of greed or being dominated by the idea of ​​getting rich quickly, it violates the law of heaven that haste makes waste, and tries to get rich overnight by putting everything in one basket. Do not understand the trading rule that the position is directly proportional to the probability of winning, lack the correct fund management system, and always use heavy positions or high leverage coefficients to "excessively trade", and eventually either because of excessive pressure and distorted operations, it will be futile, or because of mistakes or Unexpectedly, all games are lost.

Of course, after knowing the mistakes, the most important thing is to correct them in time. Trading plans and execution are very important.

How to say wrong and right in trading, sometimes the market is right, but you don’t make money, and you may be left early. At this time, you will say that you see me right. In fact, you can say that you are right, but the transaction is indeed done. It was wrong because it was out of season.

I used to do trading for a while, and I especially liked to make rebounds or pullbacks. Because I am a short-term trader, I don't think it matters. This kind of trading method is wrong for the mainstream to follow the trend, but what you can't deny is that a market will definitely be accompanied by callbacks and rebounds, so why can't you do it? Every trader does not agree with the trading method. Finding the one that suits you is the best, and you can also catch a lot of swings in such short-term trading, but it is still dangerous to do such a thing, after all, it is a contrarian trade. So you must not be blind, and stop the loss in time if you make a mistake.

Therefore, there is no absolute right or wrong in trading. Doing what you are good at in an appropriate way is the key. Keeping calm and rational is the key. Complying with the market is the kingly way.