Developing these 6 trading habits is the foundation of investment success

The source of the following content: Wechat public number Hui classroom

Trading with the same trading system, there are gains and losses!

Some people say that investment is a metaphysics, and there are always some unpredictable things. Those puzzling things are actually caused by people. Everyone's thoughts and behaviors are different, which determines the difference in investment results.

Just like doing anything, the method is the same and the result is not necessarily the same, because everyone has their own inherent habits.

Therefore, for most ordinary investors, instead of looking for successful investment methods, it is better to get rid of their bad trading habits first. This matter is the key to raising your investment score from 10 points to 60 points. As for going from 60 points to 100 points, that is another realm.

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Why Trading Habits Matter

Many trading operations are customary, such as when to watch the market every day, trading style, and whether to set a stop loss when trading. From the time you start trading, more than 45% of your daily operations are slowly forming a habit, but you don't realize it yourself.

Good trading habits and bad trading habits can create two completely different traders. Once you develop bad trading habits, no matter how much trading practice you do, it will not make you progress, and bad trading habits will continue to repeat become entrenched.

Therefore, especially beginners in trading, they must develop good trading habits when they first start trading. Experienced traders who have not made much progress can reflect on whether they have some bad trading habits.

Bad trading habits are the invisible killers in investment transactions, just like it is difficult for a smoker to quit smoking, once formed, it is difficult to break. How to prevent the development of bad trading habits in trading? Or what good trading habits can we develop?

Develop good trading habits

1. Understand the basics before trading

Just like entering any field, if you don't know the basics, how can you have a proper deeper understanding. Many novices in foreign exchange are too impatient, they want to invest in a hurry when they have money, and soon they will turn around and ask when they can make money.

To get rid of this bad habit, understand the basics of the trading market and trading principles before trading. The learning process cannot be ignored, no matter through which channel. Once you are familiar with the basic principles, you will know what skills you need to master in order to trade.

2. Demo account is a good touchstone

Not only can you make good use of the demo account before entering the real offer, but after a period of real trading, any new trading strategy or new trading method should be tested with a demo account before being applied.

Developing such a good habit can save you a lot of unnecessary costs. Regularly visit the demo account to periodically test your trading skills in a risk-free and real-world trading environment.

3. Establish trading rules and abide by them

Because it is difficult for most people to control their emotions, this greatly increases the risk of trading the market. Therefore, we must establish our own trading rules and exercise self-discipline.

It is easy to establish rules and difficult to follow. You must develop the habit of strictly abiding by trading rules and remind yourself not to trade impulsively.

4. Maintain a positive attitude

The investment market is full of uncertainties, and 60% of people have experienced liquidation. If you don't have a good attitude, it may be easy to give up. If you want to make money through investment transactions, you need to learn and understand a lot, so you also need a certain degree of initiative.

Accepting the risks and losses brought about by trading, and stopping seeking immediate returns, getting rid of impulsive trading, changing trading habits, etc. all require a positive and optimistic attitude.

5. Cultivate your patience

From Buffett's investment career, we have personally felt that successful investment requires time, discipline and patience. I don't hold a bias against any trading style, but swing trading is much better than scalping in terms of safety. The reason why many investors choose ultra-short-term trading as soon as they get started also shows to some extent that they are eager to make money from the market.

Trading requires patience, and you can develop your patience slowly. It takes time to develop a good habit, at least give yourself a month to test the results of new habits.

6. Maintain a healthy lifestyle

Investing in trading is a way we try to make money and live a better life! So we must not let the transaction affect our normal life. I saw that many traders seemed to be obsessed and lost all their property for trading, which put the cart before the horse.

It doesn’t take too long to stare at the market. If trading deprives you of time with your family or even affects your health, please get rid of this bad habit as soon as possible. Trading should not be a problem in our lives, we need to try to find a balance between personal life and trading.

Developing good habits is actually the basis for successful trading. Therefore, traders who have entered or will enter the game, please pay attention to good trading habits, and hope that everyone can raise their trading level to more than 60 points.