How to deal with losses - you only see the second tier and I'm on the fifth- trading relationship

How to deal with losses - you only see the second tier and I'm on the fifth

Pros and cons

trading relationship

Doing business depends on the future. If you do more, you can make money in the future when the price rises. If you see the past rising and you go long, you may not be able to make money.

Future prices are uncertain in transactions. Those who trade will inevitably encounter losses , and the winning rate is generally less than 100%

You can try to find some patterns at the starting point of the trend, and then find these patterns in the market to see if the follow-up is definitely a trend. Often it is not necessarily a trend, but may be a shock or even a reversal. It's like, you may go out to work, or you may go to exercise. But there is an action of "going out", assuming that "going to work" is a rise, and "exercise" is a fall. If you judge the "rise" based on the technical form of "going out", you will inevitably make mistakes in your judgment sometimes.

There are generally several levels of boundaries for dealing with losses

1. Refuse to face losses

2. Try to avoid losses

3. Admit that losses are reasonable

4. Realize that profit and loss come from the same source

5. Gains and losses follow fate, and the heart does not increase or decrease

Most people are on the 1st and 2nd floors. These people treat transactions with pragmatism, thinking that what causes must lead to what results. As long as the cause is right, the effect must be right. If you don't break through your thinking, this kind of people can only enter the market to die, do grid, and fund fixed investment to do transactions, and others will often fail.

A small number of people are on the 3rd and 4th floors. These people realize that losses are inevitable, and if they want to make money by doing transactions, they must have profits and losses. Cognitively know that the loss is reasonable, but still feel turbulent because of the loss.

Very few people reach the fifth level.This type of people fully understands the loss, from understanding and identification to the level of understanding and acceptance. Mentally let go completely.

A master trader should do it: gains and losses follow fate, and there is no increase or decrease in the mind .

Last updated: 08/15/2023 22:48

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