Emotions can be divided into natural "basic emotions" and acquired "complex emotions". Basic emotions are closely related to human primitive existence, and complex emotions can only be learned through interpersonal communication, so everyone has different numbers of complex emotions and different definitions of emotions. And we often say that emotional intelligence refers to emotional intelligence, not emotional intelligence. Under normal circumstances, people are mostly influenced by emotions. People are happy and willing to be influenced by cheerful, excited and enjoyable emotions, even if they are extremely sad. For example, if we say that the authorities are obsessed with interests, they are willing to be controlled and dominated by emotions. Of course, we have also heard that some people have masochism, that is, they like to let negative emotions control themselves and let mistakes, losses and blows torture themselves.
We have been avoiding the topic of emotion. In fact, I know that it is impossible to describe and depict real transactions in detail without involving emotions, especially futures transactions that can make us feel excited. Among 99.8% of traders, technical analysis, fundamental analysis, daily life logic and mature trading strategies are not dominant, but impulsive and reckless trading emotions. Impulse and recklessness are false courage, which disappears without a trace after placing an order. The courage of this whim seems to be given by technical analysis and other analytical methods, and the progress of the market will soon make your courage depressed.
Without careful and in-depth observation, you can still draw a general conclusion: 99% trading behavior is facilitated, assisted and completed by emotions: most traders open positions by impulse; When holding a position, the mood seems to have gradually subsided, and disappointment and regret arise spontaneously; When closing the position, it is infinite nostalgia and regret.
In the process of trading, it seems that most people are not trading money, but are thick, silly and anxious, but the real loss is money. 99% of trading behaviors involve all kinds of superficial and rough emotions: impulsiveness, regret, arrogance, impatience, greed and fear. We can accurately say: no emotion, no transaction.
When analyzing the market with technology, when the K-line combination rises, the indicators show a golden cross, and the moving average is also encouraging, traders take it for granted that the trading opportunity has arrived, and it's my turn to make a fortune. There is also the "emotional golden fork" of heartbreak impulse. They don't care what the market will do next. They can easily get up their courage, rush to place orders, and deliver their hard-earned accumulation to the choppy and extremely dangerous market like the sea.
When placing an order, ordinary traders usually want to find the reason for placing an order, which is the so-called logic of opening a position to buy. However, in the process of trading and liquidation, the market aroused her lament and heartache. Man is a rational animal and an emotional animal. It is enough for traders to place an order with the "golden fork of reason and emotion". As for the future and the future, they will not pay attention. In most cases, the transaction is incomplete or the market is anticlimactic. More than 99% of our futures traders' trading behaviors are controlled, dominated and enslaved by emotions. Futures trading seems to be impulsive. Traders rush back and forth in the market in vain every day, tired again and again, losing money again and again. They are immersed in it and enjoy it. This is all caused by emotions. For many traders, their emotional intelligence is equivalent to the catharsis and release of trading enthusiasm, which has nothing to do with profit and is closely related to loss.
However, things are far from simple. In trading, emotion is the devil among demons. They are cloaked in technical analysis. Most people are led by emotions and gradually devour all the funds in their accounts. The correct trading method is to declare war on emotions, whether it is rational traders or computer trading systems. In the trading market, our traders' standards are: greedy brains dominated by emotions and greedy, naked and fragile minds.
Generally speaking, emotion is the general term of a series of subjective cognitive experiences, and it is a psychological and physiological state produced by a variety of feelings, thoughts and behaviors. The most common and popular emotions are joy, anger, sadness, surprise, fear, love and so on. And there are some subtle emotions such as jealousy, shame, shame and pride. Emotion often interacts with emotion, personality, temper, purpose and other factors, and is also influenced by hormones and neurotransmitters. Regardless of positive or negative emotions, people will be motivated to act. Although some behaviors caused by emotions seem unexpected, in fact, consciousness is an important part of producing emotions. People's emotions are naturally controlled and learned.
Everyone lost to six destructive emotions in the transaction: impulsiveness, impatience, arrogance, regret, greed and fear. These six emotions are like six harmful gases and liquids. Your brain and other organs of your body are containers filled with these harmful gases and liquids. As long as the uncertain market judged by technical analysis matches slightly, they will come uninvited at any time and place, hurting and eroding your transaction. If the advantage of technical analysis is to provide us with courage in unknown and uncertain markets and transactions, then the accurate expression of this courage should be impulsiveness, recklessness and stupidity.
Many traders' friends are influenced by these six harmful emotions all the year round, and it is difficult to get lost. Most traders are full of these six kinds of bad emotions, and are doomed to never make a profit and never understand trading. What a trader needs to understand is not the so-called technical analysis. What they need to know is caution, patience, modesty, relief, moderation and moderate anxiety. The premise for an ordinary trader to control risks is to control emotions, and the premise for cutting off losses is to control emotions; It is often not the market that breaks you down, but your ups and downs and abnormal inner emotions.