The weakness of human nature is not obvious in daily life, but it will be brought into full play in trading.
In the face of drastic market changes, most people are unable to control themselves, which stems from the greed and fear in their hearts.
Ordinary mind is the nemesis of greed. Heroes are saddened by beauty, and transactions are saddled by greed. If you are not greedy, how can you get involved in this tortured gambling game!
The character greedy is composed of Jin and Bei characters, which means eager for quick success. The word greed is composed of the characters Lin and Nv, which means that beautiful women are like a forest, and the sea of desire is boundless.
Knowing how to give up will make your heart feel like water. Greedy words are only a little bit short of poor words. The greed of getting rich overnight will lead to excessive trading.
How to solve the problem of human weakness in trading, two suggestions:
A - Read more books, start with the understanding of trading, and true knowledge will lead to real action. The unity of knowing and doing is not that knowing is easy and doing is difficult, but knowing is difficult and doing is easy. This is the best way to correct shortcomings in trading.
B - Use programmatic trading and replace manual operations with EA operations. This method can cure the standard but not the root cause. It can be avoided for a while but it cannot be changed for a lifetime.
In addition, it is recommended that everyone try to write a transaction log every day, how to write the log? Here is a little method for me to write logs:
The trading journal is half of my trading work. Most of my energies go into doing it and repeating it. Without it, during the long period of staring at the market, I may be distracted, unable to always remember what opportunity I want and what I should do next.
The transaction log includes three aspects: transaction plan, transaction record and review summary.
trading plan
Forewarned is forearmed, without prejudging the waste. Usually, after we find out that the market has plummeted, we pat our thighs and yell that it's a pity, isn't this opportunity the empty order opportunity I mentioned at a certain time! It has long been expected that there will be a certain opportunity for a certain variety, but it is gorgeously missed in the intraday. I think the reason is because there is no trading plan. Without making a trading plan, or not writing out a trading plan, I think it is very difficult to firmly execute a certain opportunity during the period of watching the market full of greed and fear. Where in my heart will I remember that this opportunity is not in line with my system at all? Buying on impulse can destroy a trader's execution in an instant.
My trading plan is decided every morning when I watch the market, and it is displayed on a separate screen in text, and I compare it with the trading plan before watching the market. The content of my trading plan is generally to look at the market according to the trading system, specify the opportunity characteristics of the trading variety, what are the expected entry characteristics, and the specific position. Every detail in the plan must be clarified, so that there is no need for human judgment in the market, and a direct comparison is enough.
Transaction Record
1. Record the type of entry, basis, time, point, and position. Are these consistent with the plan? If not, why.
2. According to the system, write down how the position will be increased, how the stop loss will be moved, and under what circumstances it will be exited. Then record the specific increase and exit situation. Note whether these are consistent with the plan and the details.
Historical transaction records can clearly see a lot of the above information, but he can't record the basis for his buying or selling at that time, whether he executed the system, whether it was right or wrong. The mood of buying at that time may be fresh in the memory within a few days, but no one can guarantee that it will be remembered after a month or more. A good memory is not as good as a bad pen.
Review summary
If the first two steps are related to whether the current transaction can be executed correctly, then the review summary is a step that has a far-reaching impact on the future. There is no review summary, if you buy it, you buy it, if you earn it, you earn it, if you lose it, you laugh it off, if you recover from the scar, you forget the pain, then you will never know where you went wrong, and you need to persist in what you did right. If you don't want to be confused about the profit and confused about the loss, you still need to review the market and find out the reason. It is difficult for people to make progress without introspection. I usually also like to reflect on some things in my life and work regularly, not for the pursuit of perfection, but simply to become the kind of person I want to be.
The main points of review summary: regular review every week and every month. First, review the market in the past cycle to see how many opportunities have arisen and whether most of these opportunities have been grasped. If not, find out the reason ; The second is to replay the past trading records in the market at that time to see if the entry and exit, increase and decrease are executed according to the system, whether this execution has reached the risk-to-profit ratio I require, and whether there are any small changes It will make the execution easier, make the profit more or the winning rate higher. Summarize the points that you need to correct and stick to, and then try to use it in the next trading cycle, and observe the real improvement effect.
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