Every link of futures trading corresponds to human weakness. If you want to succeed, you must understand the leading factors of human nature behind every transaction, and you can overcome them and control them.
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Greed is uncontrollable.
Greed leads people to be more inclined to hold heavy positions. Because the fundamental reason for futures trading is to make a profit, get rich, get rid of the existing class and realize wealth freedom. Therefore, we are generally more eager for success. Impatience and impulsiveness are born from this.
In addition, even if you begin to understand the importance of light warehouse, you will be tempted by greed countless times in the later market development process. For example, when others are making crazy profits, when the market is rising steadily and our positions are partially floating, we will all be dragged by greed and want to increase our positions to achieve more profits.
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Fear hinders execution.
Fear will dominate you, they will interfere with execution, make you hesitate, interfere with the system, and even give up your rules. Without a stable mentality, there is no stable execution. There is no shortcut to this, and we can only accumulate it by long-term experience in the firm.
03
Hate losses, it is difficult to stop losses.
Futures trading is extremely risky. Without excellent technology and stable mentality, it is easy to lose money. Once you lose money, it will aggravate mood swings and chain reactions, and the probability of failure will greatly increase. Many people have not been taken away by the market tide, just because they have overcome their aversion to losses.
04
It's hard to give up interest.
Futures trading is a trade-off process. Traders need to give up many unrealistic interests and only take their own part. It depends on the market to cast a net. You don't have to report to you when you cast a net in the market. You don't cast a net because you won't get a return unless you leave the market. This is also difficult to do, which is closely related to greed.
Futures demand too much on people's comprehensive quality, or comprehensive ability.
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Dialectical thinking ability
I remember once knowing a futures trader. He studied the concept of trend trading for a long time and made an appropriate plan to stop losses and make profits. And the result? After trading for a week, I was stopped many times in a row. I completely changed my mind: if I want to trade, I must take the initiative to take profits, and if I lose, I must try my best to resist.
Why? Because the market has fluctuated greatly recently.
Follow the market and be driven by the market to change the trading mode. Only believe in the present, only believe in the present results, such people, in the futures market, the probability of success is basically zero. Futures trading needs the ability of dialectical thinking. It will be fine now, will it be fine in the future? Now, in the long run?
02
Anti-human ability
Stop loss is an anti-human process, because human nature hates losses. Who wants to suffer losses every day? As a result, many people have been looking for ways to stop losses all their lives, or trying various methods to avoid losses. Death and the desire for perfect prophecy are based on this.
Only those who can gain insight into the truth and resist their own human desires will have a chance to make a breakthrough.
03
The ability to delay enjoyment
This is also very important. Many people want to get rich overnight, because they are blinded by desire, so they have a heavy position, Man Cang, leverage. Such futures traders will be eliminated faster.
Only those who can restrain their desires and gradually hone their futures trading skills can stand out.
04
experience
There is a saying in The Godfather that has influenced many people-"Those who spend half a second to see through the essence of things and those who spend their whole lives unable to see the essence of things are doomed to two fates.
In the futures market, this is obvious. There are too many fallacies, fogs and traps in the futures market, because the ubiquitous uncertainty in this field provides a perfect cover for these fallacies.
05
Pressure tolerance
In futures trading, even invincible trading methods can not always remain profitable. Losses and retreats are normal things. Not making money for a long time, not reaching a new high for a long time, and the fancy of surrounding traders will bring great pressure to futures traders. At this time, only those who can resist the pressure, keep their true intentions and be firm can continue to break through.
Can't resist the pressure, can't see the essence, and can't stick to any set of methods at all. It is impossible to generate advantages in a fixed way.
There are too many factors in futures trading, and each link is a brand-new test. Futures traders need to break through step by step to reach the end point in the market. Every link will eliminate a large number of people. This is also the reason why most people end in failure.
I have seen a lot of experts share, and basically they have overcome their weaknesses well, so they can win in the transaction. A futures champion once said: A good trader must be an excellent psychologist.
Most people who have just entered the market think that the market is too simple, and the technology and mentality have not been studied and polished. It's like a recruit who only learned to pull the trigger and rushed directly into the actual bloody battlefield, so death is almost inevitable. For limited funds, being killed three or five times is enough to wash people out of the market.
Futures trading requires traders to do things that ordinary people can't do, and they need a high degree of self-discipline and establish their own rules. In this process, no one will understand, they will be very lonely and need to produce their strongest beliefs.