For many investors, they often do not understand the operation of foreign exchange investment, thus missing the profit opportunities one after another. If investors want to win more profits in foreign exchange investment, they must master certain introduction and skills of foreign exchange investment.
Many trading strategies and techniques are familiar, or even recited, to the point of taking advantage of the situation, setting a stop, making quick decisions, and so on.
Why are so many people still losing money?
Because a lot of people are: can say, can’t do!
Think about it, the market is either up or down, the opportunity is half to half, ten times trading even if there are five losses, five times to earn, if you can make up your mind, no mercy, the loss of five times each time is a little loss on the “strong arm”, I believe that the comprehensive calculation to earn thanks to less is not difficult.
Why do so many people lack self-discipline?
It was a fluke.
For example, do long, the market reverse downward, the heart always thinking: “It does not matter, will soon stop falling and rise” constantly comfort themselves, to “hope” instead of reality, “do not drag” the principle will be left behind.
It’s too subjective and wrong.
When you go to buy, you think “it must rise”; when you go to sell, you think “it must fall”.
Never thought of “what if I see wrong”, pure gambling psychology, not to lose is not normal!
It was inertia.
Knowing that the loss must be recognized in the first time, but lazy to deal with immediately, holding the “when the time comes, it is not too late to see” mentality, often sudden changes in the market, their own unprepared.
In the trading life, every trader will be faced with a variety of problems, we only bravely face the problems and find solutions, can realize their own growth and the beauty of trading.
Self-discipline is an important tool to help traders solve problems and eliminate trading confusion.
Self-discipline comes first from following the rules.
One misstep in trading can lead to big losses or even nothing.
Within the market, are the rules, only follow will be long.
Do not indulge, do not sink, those who have a strong ability to dominate the self, will eventually be good at their own field, make extraordinary achievements, and this achievement comes from self-discipline.
Only by controlling and honing yourself one thing at a time, and by demanding yourself with a strict schedule, can we reach the goal we want step by step.
This is especially true in trading.
Self-discipline is the core of trading. To be a disciplined trader, the first step is to develop the habit of self-discipline in your life.
Then we can apply it to market trading, and we’ll see our trading radically change.
Traders do not have a lot of self-discipline, such as: impulse order, can be out of the market and the expected opposite;
Afraid of hand and foot, finally lost the opportunity to enter;
You know you’re wrong, but you stubbornly believe the market will turn around, and you end up being swept away.
As soon as there is a profit gone with the wind, think they are omnipotent, heavy warehouse dry, the result is naturally very sad……
Trading isn’t gambling, but if you can’t control yourself like a red-eyed gambler, you’ll end up losing.
Therefore, self-discipline means strictly following the trading rules, analyzing each trade in detail, and trading strictly according to the plan.
Be aware of the causes and consequences of the success or failure of the previous deal, and then make a detailed plan to move on to the next deal.
In fact, good traders generally know that the cumulative number of losses is likely to be more than the number of gains.
But they are good at seizing some “big market”, try to reduce mistakes in important moments, and finally the overall profit.
Self-discipline, emotional control, and going with the flow are often the classic mottos of these great traders.
Many people fail to catch the big market, and often make mistakes, one of the biggest reason is that they can’t control themselves, do not have self-discipline.
So how can traders become disciplined?
Mark Douglas, in his book The Disciplined Trader, offers a few tips. First, we need to overcome the following mistakes: (1) Refusing to define losses.
(2) They are reluctant to close their positions even when they realize that a trade is losing money and there is no hope of getting their money back.
(3) Death or death. From a psychological point of view, this is equivalent to trying to control the market. It is equivalent to saying “I am right and the market is wrong”.
(4) They do not know how to analyze the market’s possible trend according to the structure and behavior of the market. Instead, they focus on the price or the win or loss of each trade.
(5) after the loss of revenge on the market, want to take their lost things back from the market.
(6) They are reluctant to reverse their positions even when they sense the market has changed direction.
(7) Failure to comply with the rules of the trading system.
(8) Sensed that the market would go up, made a plan, but did not start when the market appeared, and missed the opportunity to make money in vain.
(9) Not knowing to trade on your gut.
(10) There is a pattern of continuing to make money, but then one or two trades wipe out the profits, and so on.
Many traders make these mistakes, and they make it harder to be disciplined.
Only when the above problems are overcome is it a matter of discussing what to do.
Trading success is much easier when you also master the following techniques: (1) Learn to focus on goals, so you can actively focus on what you want, not what you fear.
(2) Learn how to identify and master techniques that are useful to traders, not focus on money, money is just a byproduct of technology.
(3) Learn to cope with changing fundamentals.
(4) Identify your acceptable risk — the number of losses within your acceptable range — and learn to look at the market objectively and apply stop-losses accordingly.
5. Learn to act when you see an opportunity.
(6) Learn to let the market tell you if it’s over, rather than using your own value system to determine if it’s over.
(7) Learn to use appropriate beliefs to control your perception of market fluctuations.
8. Learn to adopt an objective attitude.
9. Learn to recognize “true” intuition and learn to use it consistently.
To be disciplined in your trading, there are four principles traders should follow: 1. Understand Delayed gratification Most traders expect to enter the market without a loss on their account, but this is very difficult.
Therefore, we need to put the deficit in perspective, delayed gratification.
Deficit rhinitis on the account can be painful.
Sometimes, we need to look past the trouble of short-term losses and stick to the plan. This is the most sensible way to trade.
In the face of trading mistakes, many traders will comfort themselves, telling themselves that the mistake is caused by uncontrollable factors, such as market problems, news problems, and so on, but do not find their own problems.
If traders do not recognize their own problems in trading in time, these problems will stay in our minds, hinder the improvement of the traders ability and mentality of maturity.
Therefore, in the face of failure in trading, you need to accept the truth and recognize your own problems, so as to avoid repeating mistakes and becoming the victim of market fluctuations.
3. Be Logical What do you mean by being logical?
Simply put, it’s about staying true to the trend.
If you want to make money over the long term, follow the trend firmly.
Seek truth from facts, understand the characteristics of the market and the differences between different trading varieties, do not speculate on the trend of the market according to their own subjective assumptions.
This requires constant learning and summary, and pays a lot of time and energy.
When your trading strategy conflicts with the reality of the market, you need to revise your trading strategy and logic.
It takes a lot of discipline to overcome the pain of starting over.
Finally, self-disciplined trading also requires traders to control properly and maintain a balance in trading, which can not only effectively control trading risks, but also have the possibility of profit.
This requires traders to maintain a delicate balance between making decisions, entering and holding orders.
Don’t close out short – term gains or losses.
In addition, traders need to know when to quit, when the wrong direction, to cut losses and exit.
Well-controlled trading can help traders smooth through the crisis and move on to the next stage of trading.
In the market, we need to be fully responsible for ourselves, we can’t expect the market to go according to our wishes.
You can’t control the market, you can only learn to control yourself.
Whether profit, or loss, is their own thought caused by what they do.
Moreover, the rules of why to do this and why to do that are also made by ourselves.
Loss, from their own thought and do to find the wrong place, correct yourself!
We should be self-controlled, self-discipline, timely update suitable for their own correct rules, and internalized into their own trading system.
Trading is a high-risk and highly profitable business where everyone plays by the same market rules.
It’s not enough to work hard, you have to be more disciplined than others to get further on the road of trading.
