Traders invest not only money, energy and time, but also their own knowledge level and analytical ability. More subtly, the trader's taste, philosophical values, artistic accomplishment and religious belief will have a decisive impact on the final trading result.
The market is like a mirror, showing you naked, especially showing everything inside you completely and truly. All your outer packaging and masks are useless. Even the law is not as fair as the futures market. The short-term profit and loss of a speculator is accidental, but in the long run, the profit and loss of a trader must be driven by some internal mechanism.
Defects of human nature
The most important reason why most speculators fail in the futures market is that they don't realize the blind spot of their own humanity, and they fall into the same trap many times.
1, subjective distorted intelligence. In most cases, intelligence is manipulated by desire, especially when you are involved in your own emotions and desires. Believing in such wisdom is equivalent to believing in the eyes of a blind person.
As far as our inner nature is concerned, we don't have a center yet. Our inner nature is made up of many different and even opposite parts. There are many different voices clamoring, and our inner essence is rabble. We often make a decision, but we soon regret it because no center can make a real decision. A person can't promise, because he has many contradictory things in his own way. Sometimes we can't sleep because all kinds of contradictory ideas keep colliding in our minds.
3. The mind will create illusions to blind you and comfort you. If you are too eager for something, your mind will have hallucinations to deceive you and give you a false sense of satisfaction. Many dreams we have at night are a comfort to your mind. If you can't satisfy them during the day, your mind will create dreams to satisfy you, so as to relieve your tension and anxiety.
We are just carrying a kind of intelligence that is often distorted, a kind of mind that creates illusions. A group of rabble rushed into the futures market, and it is inevitable that they will not be carried away by the strong market impact. Therefore, in order to avoid being hit by the market, before entering the market, we must first make great efforts to integrate our mentality internally, and externally, we need a complete and relatively fixed trading strategy and scheme.
The operation of intelligence and desire in the process of trading
Before establishing a position, the average person can remain relatively objective, but it is impossible to be absolutely objective. Man is the product of all past experience accumulation, and everyone is restricted by past experience and accumulation. Some people are optimistic or pessimistic. Optimists are good at bulls, while pessimists are keen on bears.
But after establishing a position, we can't even remain relatively objective. Most people are absolutely subjective. Intelligence is bought by will, and information at this time cannot be trusted. The mind can't think rationally and analyze the market fairly and objectively.
On the contrary, I want to manipulate my thinking. I want to seek mental thinking to support my wrong decision and seek rationalization.
At this time, the premise of the brain's thinking operation is to reject any opposing views and turn a blind eye to any disk signs and signals that are not conducive to its position. At this time, the thinking is biased because of the color of desire.
It is precisely because of this that planning and strategy before trading are very important.
Once you enter the market, your mind becomes unreliable and completely untrustworthy. Therefore, it is very necessary to establish a trading system that suits you. For example, stop loss, we often can't implement the planned stop loss, but also find reasons not to stop loss, rationalize our behavior, indulge ourselves, and so on. If the stop loss is enlarged, there will be a second step, which will eventually cause great losses.
There is also a tendency in your mind that you will postpone what you should do but you don't want to do. This is the trick of desire. This is also the reason why the stop loss has been postponed again and again. Unconscious impulses are very destructive to speculative trading activities.
This phenomenon often occurs in the process of trading. We analyzed and reasoned the transaction in detail in advance, and formulated a careful and feasible strategy, but it was completely unrecognizable when it was actually implemented in the course of trading activities. Because we haven't fully understood the influence of unconscious impulse on trading activities.
All the rational parts of our theory, analysis and strategy belong only to the conscious mind, but this part is very fragile. Irrational part, intentional part is very powerful, it has its own willingness and unwillingness, likes and dislikes. A rational mind can only put forward that decision-making power and action ability belong to irrational parts. It's like experts don't have decision-making power, and people with decision-making power don't understand anything.
Our rational part and conscious effort part, like a vegetable farmer, are careful, diligent and caring for their vegetable fields. Our unconscious impulse is like a wild boar, which will break into this vegetable field at any time and destroy the whole vegetable field.
In most cases, people's irrational and impulsive parts can't restrain themselves. It often does not act according to right or wrong in truth or right or wrong in fact, but according to its own nature and preferences. Like the scorpion in Aesop's fable.
We clearly know that it is wrong to be angry with the market because of bad heavy positions and bad day trading, but we still have no choice but to do so. Therefore, the unconscious impulse has great destructive power to the final result of trading activities. In fact, wild boar and vegetable farmers are all part of us. Who holds the dominant position will determine the success or failure of our entire speculative cause.
How to understand and transcend your inner unconscious?
Almost everyone has a high position on themselves, because they agree with their conscious mind, and they suppress and avoid those dark and negative things in their nature.
But these things still exist, boiling in them. Go outside at any time Because of our depressed and evasive attitude, these things can't enter our consciousness, thus manipulating us in the dark and making things worse. Because if we don't realize them, there is no way to stop them.
People's unconscious impulse is a habit or habit, which Buddhism calls ignorance or karma. Habit is very powerful. Once formed, it can run on its own without your help. Usually we are just its slaves, which is why we always make the same mistakes and can't extricate ourselves.
Repression and avoidance cannot be surpassed. Only by face-to-face contact with them and thorough understanding can we surpass them.
A person must spend a lot of effort to penetrate his unconscious. It needs constant beating and practice, and only rational understanding will not help much.
Always remember: I am the reason why everything happens to me. But the ego always makes excuses. Once something goes wrong, we usually need to protect ourselves first. The ego will doubt everything except himself. In fact, our ego is the most suspicious. Therefore, a person must first become real, which is the first condition for success in the futures market. It is difficult for a hypocritical person to survive in the market, because he is not used to facing the facts, and he will deceive himself.
Several common psychological traps in trading
There are many qualities in human nature that can help a person succeed in other industries, but these qualities have become poison in the futures market. Iron will, indomitable spirit, diligence, optimism, self-confidence and so on.
In the process of our growth, in order to survive and compete, we formed a very hard self. Perhaps in other industries, nothing can be as successful as ego, but in the futures market, nothing can be as unsuccessful as ego.
Rebellious psychology
The education we received from childhood is based on struggle and competition, such as conquering nature, overcoming all kinds of difficulties and obstacles, and fighting against difficulties. This awareness has been deeply rooted in our hearts. When we enter the futures market, we still have such psychological consciousness.
We often see some elites and successful people from all walks of life come to the futures market, but they have failed, and they have suffered more complete failures than ordinary people. This is because these successful people in other industries have a strong sense of self. They don't believe that they will fail, and they are very unwilling to accept their failure. Their success hardened their character, so when the market turned against them, they didn't know how to give in and yield, but took a confrontational attitude until they were destroyed.
To survive in the futures market, you often need some anti-human qualities. Soft and flexible traders are more suitable for speculative markets, and hard people will soon be eliminated. Laozi appreciates the quality of softness very much. He said that soft things have more vitality. When the hurricane comes, the soft grass can be safe and sound, but the hard tree is uprooted.
There is such an almost stubborn tendency in human nature, that is, to defend one's own views and not to admit one's mistakes in judgment. Therefore, no matter whether a person is right or wrong, he will stick to his attitude to the end. Because that view is his own, he is defending himself instead of truth.
Why does human nature like fighting? Because by fighting, friction and negation, saying' no' to others will improve yourself. By fighting, he will feel strong and have personality. Obedience, submission and saying' yes' hurt one's self. This is why so many people like to argue with others. That's why every office will hear' no' whenever you go to a government department to handle affairs.
This rebellious nature in human nature and this wrong attitude of unwilling to yield and give up are the biggest obstacles to futures trading.
Psychology of pursuing perfection
The pursuit of perfection is a very greedy psychology and an extreme psychology. Because of the pursuit of perfection, you are not allowed to have a little flaw, even a little loss can't be borne, and it is difficult to stop loss. Because of the pursuit of perfection, one tries to catch all the fluctuations and doesn't want to miss any market. Everyone has their own limitations and areas that they are not good at. The pursuit of perfection can easily lead to heavy trading and intraday trading.
The psychology of finishing a battle
Take the result of a transaction too seriously and plot to get rich in a transaction. Or refuse to stop loss when the market is obviously wrong, and stick to the loss position like a widow.
Futures trading is a long-term process, and there is no need to fight for the result of a transaction. Sometimes it is very healthy to accept some small losses, so as to prevent big losses. Just like a proper cold is good for a person's overall health.
Psychology of counting money
This is a psychology of being swayed by considerations of gain and loss. Once we open a position, we always think about the rise and fall of book funds, and are influenced by this change, ignoring the real market itself. This greatly interferes with our normal thinking and judgment.
We should pay more attention to the correctness of the process, and the result will follow. If the result is considered in advance, the whole transaction process will be disturbed and the action will be deformed. People's minds always jump into the distance ahead of time to think about illusory results, ignoring what really happens now, which is the biggest absurdity and inversion in our lives.
Transition time frame
The list that was originally a short-term transaction was forced to be converted into a medium-long line. And do short-term processing on the original list of the center line. The whole transaction was in disorder.
Enthusiastic about predicting the market, trying to grasp the head or bottom.
Any prediction is subjective and cannot be objective. Even the predictions of many famous consulting organizations are full of mistakes. Once you predict the market or believe the opinions of a market comment, you can't see the true face of the market, because you will project your subjective views on the market and the market will become a screen. No matter how the market fluctuates, you will have your own explanation.
You will form a bullish or bearish complex that hangs over speculators like a dark cloud, and finally this complex becomes a deadlock. He will look at the market with a distorted view for months or even years, leading to the paralysis of the whole speculation.
Once you have predicted the market, you are unwilling to set a stop loss position, because you believe that any fluctuation that is unfavorable to you will be short-lived and the market will eventually return to your predicted direction. Many speculators have suffered heavy losses when trying to catch the bottom or top of the market.
Some trading maxims worth recommending.
Unless the market sends a clear entry signal, don't be attracted by the short-term signs on the disk. Sometimes the short-term fluctuation of the disk is so tempting that we rush in regardless. However, we did not seriously examine the position of this short-selling fluctuation in the whole megatrend. This kind of transaction only has a low chance of winning, which often makes us very embarrassed.
The worst way to trade is to hold a heavy position, even though Man Cang often goes in and out. This is a complete loss of self-control, almost crazy behavior. Always insist on betting on those transactions that are most likely to succeed. This is a question of probability and probability.
There are some market conditions or price patterns that you may feel very much. The same situation has been profitable several times before. Don't miss this opportunity. Adjust your market position according to odds. Give up trading opportunities that are not to your liking, because you will lack confidence and hesitate in the face of such opportunities.
The quality of action depends on the quality of inaction.
If you are well prepared, you won't be in a hurry and do things just right.
Day trading will inevitably lead to the decline of the overall trading quality, because there are too many clues in the brain, and the whole thinking will inevitably be chaotic.
People's body, mind, mood and intelligence all have a ups and downs cycle, and their cycles are 23 days, 28 days and 33 days respectively. When the body and mind are at a low ebb and the mind is confused, it is best to avoid the market.
Bad trading not only brings losses in itself, but also prevents real opportunities from entering the market in time.
A trader should keep a balance between doing and not doing, and keep a balance between trading and rest. Just like you need exercise during the day and sleep and rest at night. If there is only day without night, a person will go crazy.
We often can't keep empty positions because we can't stand loneliness. In fact, it is very healthy to keep short. You can maintain a neutral attitude and observe the market objectively and calmly. Once the real opportunity appears, you can enter the arena without any resistance at all.
Usually we do a lot of transactions that we shouldn't do. When the real profit opportunity comes, the opportunity that really belongs to you, you are stuck in the quagmire of bad transactions and have no time to take care of it. This is one of the most regrettable things in futures trading.
It's like when your real ideal lover appears in front of you, but you have fallen into the quagmire of marriage, and you can't extricate yourself from hanging out with a person who is not so good. It's all because you can't stand being alone.
Improve your state of consciousness and reach a higher foothold.
Some problems can't be solved at the same level, because other new problems will appear in the process of solving this problem, so we can only go beyond the problem and can't solve the problem at the problem level. Similarly, some problems in futures trading cannot be solved at the level of futures, and a trader needs to raise himself to a height far beyond the market, so that the original problems will be surpassed.
This aspect cannot be achieved by theoretical study and knowledge accumulation. Because theoretical knowledge is external and dead. Wisdom is alive, the ability to know, and the subtle and unmeasurable levels of understanding, insight, sensitivity and overall situation. The improvement of these internal comprehensive qualities needs the help of art, music, philosophy and religion.
The task of philosophy is to know oneself and the relationship between the subjective world and the objective world. The cultivation of philosophical quality helps to improve our rational consciousness, overall situation view and overall situation sense.
Traders should not only be able to observe the trend of the market, but also be able to gain insight into their psychological dynamics in the process of trading, because trading is a two-way interactive process. When the dynamics of subject and object can be reflected in your consciousness, this perception is the real wisdom.
Art and music are beyond reason, while unconsciousness and desire are lower than reason. The mind can understand things lower than it, but it can't understand art and music, because art and music are far above the mind. Only by improving our understanding can we appreciate the infinite scenery of the art world.
On the other hand, if we are properly exposed to art and music, it will improve our wisdom, flexibility, sensitivity and coordination, especially help to enhance our understanding, which is very helpful for our operation in the futures market. Music is the most nourishing of all arts, because music itself is a kind of harmony, and we are a chaotic existence at present, and often enjoying music helps to achieve our inner harmony.
Our hearts become too dull and hard in the rough and turbid desire, and the delicate, sensitive and enlightened parts of our nature are buried. We have almost lost all our understanding and insight, because we rely too much on reason and mind. But reason is always one-sided, fragmented and indirect, and can only be inferred step by step, such as a blind man groping in the dark with a cane. And understanding goes beyond the mind and comes from your whole. It's sudden and direct. You suddenly understand a lot of things, which is like Zen enlightenment.
Religion acts directly on our desires. When a person has religious consciousness, his desire will naturally fade, and the wild boar in our heart will not be so violent. When we are less frantic and anxious, less eager for quick success and instant benefit, our reason will be clearer, more objective and calm, and we will make fewer mistakes.
Internal promotion is a long and gradual process. When we improve our foothold, we will have a holistic perspective and look at the whole thing with a detached attitude. As Goethe said, "When we improve our foothold, we improve everything. If we lower our foothold, then we will make up for all our pains.