Combining with the recent status and emotional feedback of many people, I have also discovered many problems. Let me summarize them for everyone’s encouragement.
Each of us has many weaknesses when it comes to trading, which can be seen as some inherent habits of human nature. The most common one is that before placing a trade, we usually have a strong view, and then we execute the trade. However, once we hold the position, our attention may be focused on the fluctuating profit and loss, especially the changes in funds. This constant volatility torments us and leads us to forget about the trade itself and ignore our initial viewpoint. At this point, many people’s intelligence actually decreases because their attention is fixated on gains and losses, which disrupts our rational judgment. However, a few people have experience and good skills in trading. These trading experts say that as long as the profits and losses are within their initial planning, avoiding major losses, they have enough patience and determination to wait for the market to evolve. In this way, they won’t disturb their trading by thinking about the results in advance because people always tend to jump their thoughts far ahead, focusing on imaginary outcomes and neglecting the real situation. This is the biggest mistake. Many people want to enter a trade but hesitate, regret after entering, and regret again after closing the position, repeating this cycle. It is necessary to determine the profits and losses in the trading system and close the positions that break the market and disrupt our psychological defense line. What are taking profit and stop loss for? They are for consolidating funds through profits and preventing losses from growing, right?
We need to break traditional thinking because some excellent qualities in traditional thinking are not applicable in the cryptocurrency market. Let me explain this in detail. Many of us possess excellent qualities in the traditional market, such as overcoming difficulties, fearlessly competing, fighting to the end, and being perseverant. These deeply rooted qualities will always exist within us. Because we have achieved success and good results with these qualities in the traditional market, we also bring them to the cryptocurrency market. However, it only makes us more self-centered, defending ourselves, and attempting to resist and oppose the market when faced with reality, using these excellent qualities. As a result, we will ultimately fail more thoroughly. This kind of struggle will result in significant losses in trading, and I believe many people have experienced it. Well, I have experienced it.
Recently, many people have been pursuing perfection, and an extreme world cannot tolerate any flaws. Why is it that the stop loss I set is usually around 1000 points, but many people’s losses can reach 1500 or even 2000 points? It is because it is difficult to execute a stop loss. Think about whether what I said is correct. Trading experts like me believe that when you earn a lot or lose a lot in the market, you are unwilling to set a stop loss easily. If you win five trades in a row, will you easily set a stop loss for the sixth one? If you lose two trades, will you easily set a stop loss for the third one? If you have already predetermined how many consecutive wins you will have and do not allow any losses, do you think you will set a stop loss? Thinking ahead about the bright future means neglecting the real situation because the real situation is about profits and losses, ups and downs in trading. Why would there be extremely perfect things? Why confront the real market with arrogance?
Speaking of which, are there people in the market who just started trading for a while and already talk about quitting? It’s because they are pursuing overnight wealth, a single trade that will make them rich instantly. Therefore, they naturally take heavy positions, expecting to make a big profit. However, they find themselves losing in one or two trades, and they can’t continue playing. The essence of trading lies in the long term, not in a single trade. Small stop losses are also very healthy because once you have learned, you will not have large stop losses.
When the market is not experiencing major fluctuations, let’s summarize and analyze everyone’s status and emotional depth in each time period. Talking too much about many things can be tasteless, but if you don’t speak, it will always cause many chain reactions. Why do retail investors always lose money? How many retail investors can make money? In the entire financial investment market, think about the source of the water, and you will understand why retail investors lose money, right?
If there are areas that need improvement, let’s make the necessary changes. Let’s learn together, make progress together, and comprehend trading together.
