The psychological advantage of the winner of the transaction analyzes the psychology of investors in the process of market sales. The following "psychological advantage of the winner of the transaction" is what I brought to you, I hope it will help you.
Why are thousands of people good at analyzing technical charts, but few really good traders? The reason is that they actually need to spend more time to improve their psychological quality, rather than just learning analytical methods.
The fate of investors does not depend on the ups and downs of the market itself, but on the trading psychology of investors themselves.
The result of a person's winning or losing in the market is actually a reward and punishment for his humanity. No matter what style of investors, I am afraid they have to face the basic human temperament for thousands of years. The torture of greed and fear. Perhaps the reason why a few excellent investors win is revealed by the psychological advantage of the winners in the transaction? Inner tempering.
Is this book written by Michael? s？ After interviewing 100 of the most famous traders on Wall Street, Dr. Schopscher's guide book perfectly combines psychological principles with trading practice. Zeng Xiaotao, a senior securities and futures practitioner in China, has been engaged in stock futures research and trading in securities companies, futures companies, trust and investment companies and other professional institutions for nearly 20 years.
Dr Schopscher gave traders the following advice:
Advice 1: Because the market is too chaotic to find a universal law, over-analysis and reluctant prediction are tantamount to fishing at the same time. Therefore, accepting the fact that the market is unpredictable is the first step to establish a psychological advantage.
Recommendation 2: Remember, there is no perfect trader. You can't beat yourself, and your weakness will accompany you all your life. However, accepting your weaknesses can make you more flexible and effectively reduce the cost of making mistakes.
Suggestion 3: In addition to making money, find a trading motivation that suits your personality, understand what motivates you to become a trader, and strive to do better every day while enjoying the process, which can help you improve your performance and maintain long-term profitability.
Recommendation 4: Trading risk is directly proportional to the time of holding trading positions, so the best way to control risk is to control trading time. Never buy because the price is low, but sell because the price is high; Never add positions at a loss.
Advice 5: correctly understand success, and the complacency caused by success will blind the real situation. The more you win, the better you feel about yourself and the more conceited you are. The joy of success is a gambler's anesthetic. In many cases, once gamblers are excited by profits, losses will follow. It is success to have enough funds and a normal mentality to start trading every day.
Advice 6: Don't be too excited when the transaction goes well, and don't be too depressed when it doesn't. Understand right and wrong correctly, and don't judge heroes by their results. Sometimes you do the right thing and still lose money; Sometimes you make money by doing something wrong. The correct method cannot guarantee success, and the wrong method will eventually make you fail.
Extended reading:
Psychological analysis of transaction
1 Be responsible for your own transactions and accept risks:
The best traders trade without hesitation or conflict, and frankly admit that maybe the transaction will not succeed. Even if there is a loss, they will not feel a little uncomfortable when they withdraw from the transaction. In other words, the inherent risks of trading will not make the best traders lose discipline, concentration or confidence. If you can't trade without emotion (especially fear), then you haven't learned to accept the inherent risks of trading. This is a big problem, because no matter how much you don't accept the risk, it is equivalent to avoiding the risk. Always trying to avoid inevitable risks will have a disastrous impact on your trading ability.
Once you learn the technology of accepting risks, no matter what happens in the market, you won't feel pain. If the market can't make you suffer, you don't need to avoid anything. You only see probability. This is called objectivity? Not because of fear of what will happen or what will not happen. The best traders are not afraid. They are not afraid because they enter and exit transactions according to the opportunities provided by the market, forming the greatest ideological flexibility and being free to enter and exit transactions. At the same time, the best traders have formed an attitude of not being rash. To some extent, everyone is afraid. When they are no longer afraid, they tend to be reckless. As a result, they are afraid again.
When you are afraid, there is no other possibility. Because fear makes you lose your mobility, even if you try to see other possibilities, you can't see them or handle them improperly. Physiologically, fear makes us frozen and makes us unable to run. Psychologically, fear makes us focus on fear. This shows that other possible ideas and other information in the market are blocked. If you haven't finished worrying, you won't think of anything rational.
2. Market analysis can't solve the fundamental problem.
The behavior of the market is infinite. It can do anything at any time. This means that no matter how much market behavior you learn, no matter how excellent your analysis is, you will never learn enough knowledge to prevent the market from making mistakes or losing money. If you are afraid of making mistakes or losing money, it means that you can't learn enough knowledge to make up for the negative impact of fear, so you will not be objective and will not hesitate to act. I'm not saying that we don't need market analysis or methods to define and understand the market. Of course we do. However, market analysis can't reach a consistent result. It can't solve the trading problems caused by lack of confidence, discipline or improper focus.
You have two choices: you can eliminate the risk by learning as many market variables as possible (I call it the black hole of analysis because it leads to the final setback). Or you can learn how to redefine your trading activities, so that you can accept risks and stop being afraid of them.
Once you reach a certain ideological level, you completely accept the risk, so you won't painfully define and interpret market information. When you no longer painfully define and interpret market information, you also eliminate these tendencies: looking for reasons, hesitating, acting prematurely, hoping that the market will give you money and hope that the market will keep saving you.
3. The characteristics of trading can be understood as pure and unburdened personal choice, which will soon produce results. Traders who are not responsible for their own interpretation and action results will enter a dilemma: how can a person make a completely free choice, and at the same time, how can he shirk his responsibility if the result of his choice is unwanted?
Avoiding responsible trading style is to pursue arbitrariness wholeheartedly.
When we trade without a plan, we will face infinite variables, and it is easy to turn trading into our preference (because there are some ready-made methods). At the same time, if the transaction result is not what we think, we can easily evade responsibility (because there are always variables we don't know, so we can't consider them in advance).
I have talked with countless traders who are willing to spend hours analyzing the market and making trading plans for the next day. However, instead of trading, they made other transactions. Other transactions they make are usually news from friends or brokers. I can say that the transactions they originally planned but didn't implement are usually the big winners of the day. This is a typical example of why we are vulnerable to unstructured and random transactions. Because we don't want to be responsible.
When we trade ourselves, we have the creative ability to wait on us, and we will soon know whether our ideas are good or not. It is difficult to justify the unsatisfactory result. On the other hand, when we engage in unplanned random transactions, we can simply pass the buck by blaming friends or brokers for their bad ideas.
4. Indulge in random returns
Someone did a study with monkeys to observe the psychological impact of random returns. For example, if you teach a monkey to complete a task and give it benefits as long as the task is completed, the monkey will soon connect the efforts with the specific results. If the monkey finishes the task, if you don't return it, the monkey will finish the task in a short time. It already knows that there is no return, so it won't waste any more energy.
However, if you reward monkeys in a random way, the monkeys will react differently. When you stop rewarding the monkey, the monkey doesn't know whether it will be rewarded if you finish the task next time. Every return is a surprise. In this way, from the monkey's point of view, there is no reason not to complete the task. Even if there is no reward, the monkey will continue to complete the task. Some monkeys will do this forever.
Addiction problems can cause us to fall into? No choice? A state of confusion. Addiction controls our thoughts to a certain extent, and our focus and efforts are all for the goal of addiction. Others can meet other needs (such as believing in yourself and not taking too many risks), which may be ignored and abandoned. We don't have any ability, we can only satisfy addiction. Addicted to random returns is particularly troublesome for traders, because it hinders the formation of ideological structure and the realization of continuous consistency.
5. Shape your spiritual environment
Remember, the best traders think in many unique ways. The ideological structure they have formed can make them not afraid when trading, but also prevent you from becoming rash and making mistakes because of fear. This idea has many characteristics, but the most important thing is that successful traders eliminate the influence of fear and recklessness. These two basic characteristics can help them get consistent results.
Once you have this idea, you won't be afraid of trading. You no longer make mistakes because you are afraid to find reasons, subconsciously distort information, hesitate, act too early or expect. Once the fear disappears, there is no reason to make mistakes. As a result, they really disappeared from your transaction.
However, eliminating fear is only half the battle. The other half is to form constraints. Excellent traders have learned how to use internal discipline or ideological and mechanical system to deal with the negative effects such as overexcitation or overconfidence brought by a series of profits. For traders, if they don't know how to monitor and control themselves, making profits is super dangerous.
If we know from the beginning that consistent traders must focus on forming traders' thoughts, then it is easy to know why many traders fail. They are not learning how to think like traders, but thinking about how to make more money by learning the market. It is easy to fall into this trap. There are some psychological factors that can easily make you believe that you don't understand the market, which leads to your loss and inconsistent results.
However, this is not the case. The consistency you seek is in your mind, not in the market. It is because of the wrong attitude and belief that you lose money; When you feel good, consistency becomes rash, leading to more losses? Not because of technology or market information.
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