Huichacha: Can Diligence Save Losses in Trading Business?

Huichacha Intelligence Bureau
huichacha official operation team

From a loss to a stable profit, the bitterness of the trader may only be known to the trader himself. From loss to profit, the only way for traders to practice. After overcoming all obstacles, what is left behind is not a physically and mentally exhausted body, but a more determined heart.

Many traders even stay up until three or four o'clock every night before going to bed, and start a new day of fighting in the morning. Obviously very hardworking, but why didn't they get rid of the loss?

The following factors should still be considered:

First, there is not enough time, we haven’t made it to the end, we haven’t made it through yet

How do you think steel is tempered? It needs to be calcined at high temperature for "a period of time". Any individual must stay in the trading market for 5-10 years to become a talent and hope to stand out.

You must be able to endure suffering and tests that are unbearable for ordinary people, and it takes a long time. Without 5-10 years of losses, a master trader cannot be born. There are not many people who can start to make money after 3-5 years of being a Taoist, and most of them are rising stars.

However, on the road of trading, how many people will be able to persist for more than 5 years?

Second, experience is not enough

Even if you have been in a circle for ten years, it does not mean that you can stand out. A person who has repaired a car for 20 years is still a car repairman; a person who has cut hair for 20 years is still a barber. If you have been in the trading circle for 10 years, if you are just doing chores in bits and pieces, without going deep into the essence of trading, not having enough understanding, and not good at summarizing, you will be nothing more than a trading market researcher or ordinary worker in the end.

Among them, the most important experience is to have several times of liquidation or loss. Exploding a warehouse is like a soldier firing a gun. It is an indispensable experience in the growth process. Ordinary people liquidate their positions once, and most of them exit the market because they don't sum up their experience.

The best traders can quickly understand the reasons for the loss and the root cause of the liquidation in the early loss experience, and then summarize the rules in a targeted manner, thus forming their own unique investment and trading system.

Third, it has not yet formed its own trading system

Everyone who makes stable profits in trading actually has his own unique trading system. The core of this investment system includes the following points:

1. Reasons for entry.

2. Reasons for holding positions.

3. Reasons for appearance.

Among them, the most important is the reason for entering the market. A good trader can solve the following problems:

1. Why do you want to enter the market? Are the reasons sufficient?

2. How much money is invested? What is the proportion of my funds?

3. How much can I expect to earn?

4. What is my maximum risk?

5. In case the expectation is not met, what is my stop loss plan?

To solve the above problems, it is necessary to have a complete trading system of its own. This kind of thing often comes from practice and is based on knowledge. The foundation of theory is often ready-made, and you don't need to create it yourself, but you have to understand the theory thoroughly, combine it with practice, and form your own things.

Fourth, decisiveness, or decisiveness!

Almost all investment books on the market are on the technical level, and at most solve a little bit of theoretical level. However, almost none of the books discuss in detail the decision-making level of capital allocation, which is the most critical factor in profitability. Whoever is decisive can survive. But the premise requires that the decisiveness happens to be right. Whether the decision is right or wrong depends on your research ability.

In short:

Trading is not an easy task. Successful traders will form their own trading philosophy and life philosophy in the process of investing. There are no talented traders in the market, but more ordinary traders who have gone through a lot of hardships and carried forward with heavy burdens. Now that you have chosen to trade, you should go forward bravely and strive for a piece of the world. Don't ask how the future is, but I hope that the curtain will end without regret!

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Last updated: 08/30/2023 00:51

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