It is said that psychologists have done experiments on pigeons in the square, randomly throwing food at them to see how they react?
Because the throwing is random, the pigeons could have been doing anything from scratching their heads to picking their feet. .
Soon psychologists discovered that the pigeons linked their behavior at that time with getting food.
So some pigeons scratch their heads from time to time, and some pick their feet from time to time-in order to "summon" food.
How absurd are all these behaviors in the eyes of those who seem to cast God.
I also read in a book that psychologists conduct experiments on dogs (maybe rats) and divide them into three groups. One group is punishment, that is, if the dog does a certain behavior, it will be punished, and then the dog will die soon. Don’t do that behavior; the other group is reward, if the dog does a certain behavior, reward it, so the dog desperately does this behavior; the third group, the reward and punishment are random, that is, if the dog does a certain behavior Behavior, sometimes he is punished, and sometimes he is rewarded.
Finally the dog went crazy!
In fact, traders in the market are no luckier than pigeons in the square or dogs in the laboratory.
The market probably throws food at random, doesn't it? From a microscopic point of view, a single operation is almost non-deterministic, and what is the difference from a random reward? Some traders made money on the "Red Three Soldiers", and some made money on the "MACD Golden Cross".
From now on, embark on the road of self-attribution!
In the same way, the same operation mode is still due to the fact that there is almost no certainty in a single operation. It is very common to make money this time and lose money the next time. Stick to it.
Whether it's a pigeon or a dog, we don't want to be one. However, the market is like this: ruthless~
That's why Bill Williams said that chronically incorrect trading can lead to psychosis!
Well, the price is not small.
Therefore, it is necessary to sort out the relationship between profit and loss, right and wrong, good and bad.
In fact, it is also a common topic, and there is nothing new to say here, just to sort out.
Profit and loss are pure and objective.
We can put it another way: In financial accounting, there are positive and negative numbers.
Profit is a positive number, and a loss is a negative number.
However, being objective in the accounts does not mean being objective in human eyes.
Profit is not equal to being right; loss is not equal to being wrong.
If the profit is made in the wrong way, it will encourage the trader: he will continue to trade according to this in the future! Intensify!
Then sooner or later you will lose money.
If the loss is done in the correct way, it will be a blow to the trader: Damn, is this method reliable? Can we be successful if we mix like this?
So, how to define right and wrong?
Just three points: 1. A trading system with positive expectations. 2. Fund management without bankruptcy risk. 3. Maintain consistent discipline.
If these three points are met, it is correct, otherwise it is wrong (systematic trader's thinking, each company has its own standards, do not raise the bar).
Finally talk about good and bad.
What is good? As the saying goes, if you lose your horse, you will never know it is a blessing. Good or bad is really the hardest thing to judge.
The answer I personally give is this: what can accumulate blessings is a good thing, and what can accumulate bad rewards is a bad thing.
In the trading center, combining profit and loss and right or wrong, there are four combinations. For two of them, we can draw the following conclusions:
1. Making money in the wrong way is the worst thing.
2. Making money in the right way is the best thing.
This is because people love positive feedback.
If you make money in the wrong way, you will form an attachment to the wrong way, and the more you do it, the more evil rewards you will accumulate.
On the contrary, if you make money in the right way, you will experience the power of the "law", which will generate confidence and trust, and you will be able to persevere, and finally cross that hurdle, no need to persist, and internalize into discipline.
This will accumulate more blessings!
Author: Kim Seung-ho
Learn the correct trading ideas and capture market trends in advance!
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