Therefore, what I want to discuss is how to avoid repeating the same mistakes after trading profits. It is not how to go from failure to success, nor how to avoid or get rid of losses. Turning losses into profits can be a transaction of a certain amount or a transaction of a certain period of time. It went well at first, but finally I closed my position and withdrew, or found that there was little profit or even a loss at the end of the period.
In my deep reflection on the failure of the transaction, I mainly have two fatal reasons:
First, in the trading psychology, blindly optimistic;
Second, in the trading system, blind self-confidence.
If a trader can maintain long-term trading success, generally speaking, it can show that he has a certain degree of understanding and cognition of the market and has formed trading ideas, trading rules, trading strategies, trading methods and trading skills suitable for him; Have considerable execution, control, self-regulation and endurance in mentality and emotion. These are all indispensable factors for the success of futures trading.
However, after a successful transaction for a period of time, people are often affected by emotions! There will also be some subtle changes in mentality, and I feel that I have understood the laws of the market and can beat the market.
In the specific trading behavior, there are mainly the following:
First of all, the scope of risk control has expanded.
This is a very common and fatal problem. When the transaction is smooth, it is easy to expand the position at will, which will also expand the risk tolerance. I used to have only one hand, but now I have three hands; The original stop loss 100 points, now 300 points. After expanding positions and risks, any unfavorable actions may quickly devour the previous profits!
Second, the access conditions are relaxed.
While expanding the proportion of capital investment, it also increased the number of times it entered the market. Frequent entry and exit, in different varieties and different trading modes, seems to seize every opportunity, but in fact it only leads to the distraction of trading attention. You should learn to choose and look for the biggest trading opportunity.
Third, the implementation of trading rules has been relaxed.
Trading rules are the only lifebuoy for traders. But in the case of blind optimism and blind confidence, they will take the initiative to violate their own rules.
Fourth, give up vigilance against market uncertainty.
Uncertainty is a characteristic of the market, which may appear at any time and in any variety. However, during the economic boom, people tend to overlook the importance of uncertainty.
The market is a book that can never be read. We can never beat the market, and we can never fully understand it. If you want to live longer and go further in the market, you need to always be alert to your demons.