Successful traders often have qualities that make them stand out, such as the right ways to think, cautious trading attitude, strong confidence, bravery and a never-say-never spirit. In the hardest times of the market, they can still follow the system. As they know in order to succeed, you must vision long-term, overcome the weakness of humanity and stick to the steadfast profiting model with patience and confidence.
Deep down, the reasons of lust and fear is often a messy trading mindset and unreasonable capital management.
In our life, two emotions usually play a dominant role or even a decisive role in fate, which are lust and fear. Investment, on the other hand, is a reflection and a minimized version of life. Those who are in the world of investment are often faced with the lure of fear and lust. And the naked money trading in investment tend to amplify such emotions. As a result, a person is totally lost. Actually, when operating, we should not expect to capture all the market quotations. Instead, we should follow the major trading idea and operate unilaterally. The market is ongoing. Even if you miss a good opportunity, with patience and good control of your greed, you will always have the next good timing. Yet too often, many of us can never control the greed within and tend to sell into corrections after missing the good timing. And often, we let fear get the best of us and close out the positions manually that could have been a good profiting opportunity.
Almost all the traders who failed suffered from chaotic trading ideas. Unable to understand the philosophy of profiting, they reject the loss of system and also reject the opportunities to win. In trading, loss is merely a necessary cost for the ultimate success. It is as natural as human breath. However, many investors often give up on an excellent trading system out of the fear of the unpredictability of the future after several consecutive losses.
A successful trader must have the right understanding and attitude towards losses. Only when you properly understand the meaning of loss to the whole trading system, can you operate without pressure. Without fully accepting losses in trading ideas, you can never become a trader who can profit constantly. For the overall profit, temporary loss is a must.
All those weird trading behaviors are actually the result of unclear trading ideas and unfamiliarity with the profiting philosophies. Think about if we have the right trading ideas and a profound understanding of trading, we know that success is not about the adjustments of the trend but about following the rules strictly. Will we still sway about how the trend will go when the system indicates rising? If we have a profound understanding that trading is not about trend but about the signals, will we still operate randomly and caring restlessly about the outer? If we deeply understand the trading philosophy of investment profit that loss is only the only way for us to reach success, will we still not accept losses and pursue and find a high winning rate trading system?
If we understand that all trading systems can only capture a specific period of market and more operations do not always bring more profit, will we still operate frequently with the greed to capture all profits?
Trading is only about the signals of the system. The direction of the trend has nothing to do with your success at all. Checking on the outer, listening to the news and consulting the experts do nothing for your success but can only add on to your anxiety. As long as the system shows a short signal, even if people all over the world expect the market to rise, you can only sell. Strict operation of the system can ensure that losses are minimized and profits are maximized. As a famous saying goes: "A good trader is a trader with no point of view".
There is also a situation that leads us to fear and greed, that is, the unreasonable use of capital.
Heavy positions, full positions, and continuous increase of positions will make your operating funds undertake too much risk. This gambling operation can only lead to two results: either a huge profit or you being wiped out. As a result, the trader hastily closed out when the market has not reached the designated stop loss position due to the extreme fear in heart, leading to the entire operation deformed. Or, they might five up on a good operation system due to fear.
Trading seeks the balance between returns and risks. We can neither blindly use heavy positions nor always use light positions. Instead, we should take the right approach according to different market situation so that our operations are only qualitative, but also quantitative, and having a real guidance over the practice. The essence of fund management also lies in the constant changes according to the trading system and the profitability of the trading positions.
In other words, trading not only brings you money, but also wisdom and purity of humanity!
Having a good trading system is the starting point, execution is the difficult point, and having a practical trading strategy is the key point. By continuously refining and improving the details of the trading system to suit your trading personality, your own execution can be greatly improved. In the end, you will trade smoothly without any pressure on your mind.
As for the disciplines in investment, we can often define the trading system to suit our own personality; design excellent fund management to reduce the psychological pressure when trading; practice on capital trading to prevent random operations due to misunderstandings of investment and solidify the process so that you can easily comply with transaction discipline.
Techniques are only a minor obstacle on your way to success. What lies behind the techniques are your mind on how to trade.
After you have a profitable trading system, it is often possible that you fail to follow the system in real operations. What exactly is affecting our execution of a good trading system? The answer is the belief and ability of the trader to thoroughly carry out the trading system. Confidence is the key and the prerequisite of success. How confident you are decides how successful you can be.
The mindset you should have for success in trading:
- The trading philosophy of profit
- How the trader should view yourself and the market
- The right trading philosophy
- Firm attitude towards the investment market and confidence in trading
- Trading behaviors and procedures in real practice
Very often, many people with profiting trading system but failed to implement are resulted by their doubts of the system and lack of confidence in the system. “We should not only have a trading system, but also a faith system”.
So how do we form a firm belief in our trading system in trading? The answer is simple. Familiarize yourself with the system, understand the system, and integrate with the system. Trading technology and trading philosophy are one, and it is the concrete embodiment of the right trading philosophy. Only such techniques can be deeply entrenched and can be applied without any obstacles.
Only when investors train their trading skills into a trading habit so that they are too proficient to think, can they really resist the charming temptation of the market, and they can fully harvest the ability to operate according to system signals.
Investment is a marathon, not a 100-meter race. In this protracted game, the winner is not the one who runs the fastest, but the one who keeps a firm and stable pace.
Only when we focus on a trading model that we are most familiar with for a long time, can we form a certain degree of tacit understanding with this simulation, so that your heart beats at the same rate with the market and you can reach a state of mind with comfort and relax.
Investing is a game that one can only win when one is relaxed, light and following a certain pattern. If you feel anxiety and panic every day in your trading, it must be that you are trading against the market, which makes you unable to profit.
Trading is gradually growing in the constant struggle with your own humanity. You can become a successful trader only if you gradually make the uncomfortable trading process natural and smooth.
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