1. The operating cycle is too slow
I really want to seize the first opportunity to enter the market, so I look at the k-line charts of periods below H1, such as M15 and M5. Don’t you know that the shorter the period, the more cheating lines, the advantages and disadvantages are not comparable, and the gains outweigh the losses.
It is not to completely deny short-term trading, but you have to admit the fact that the shorter the cycle, the probability that the k-line will really rise after being bullish, and the probability of really falling after being bearish will also decrease, and the credibility of the k-line will decrease.
For example, if you want to enter the market based on the K-line of M15, let’s assume that the closing of H1 happens to be in the same bullish and bearish direction as the M15k-line, but can you really not wait for the other three M15k-lines (45 minutes)? If the market is really going to have a trend, will you miss the trend train just because you entered 45 minutes late? If you enter the market 45 minutes late, the market will have little room or even start to reverse, then why is this kind of trading opportunity necessary? It doesn't matter if you don't do it.
To take a step back, if you make orders based on the signal K line of M15, you should check the market at least once every 15 minutes. This will consume four times your energy as the H1 chart, which is too tiring. Why not use a method that makes your mind less tired and the reliability of the k-line is obviously higher?
2. Enter the market without waiting for the market to close
I don't want to miss any trading opportunities, so I am bullish in the market, and I quickly enter the market to go long, and I am bearish in the market, so I quickly enter the market to sell short, for fear of missing the opportunity. As everyone knows, the probability of attracting more and less on the unclosed bar is much greater than that on the closed bar.
From another perspective, it is clearer that many technical indicators, k-line patterns, and k-line combinations are particularly effective in the resumption of trading, but they have little effect or even suffered a lot of losses in real trading. The root cause lies in your resumption. The technical indicators based on trading decisions are all processed from the four parameters (open high low close) of the closed k-line, and the k-line shape and k-line combination are also based on the closed k-line. But in the real offer transaction, what you see is the dancing bar, you are closer to her, but you will get lost under her pomegranate skirt. This shows that her every frown and smile can affect your nerves, and when it is serious, it will make you crazy. The signals you receive have increased greatly, but the proportion of false signals (noise) has not decreased at all and has increased, so can you not lose money?
3. Don’t want to miss any trading opportunities even if the profit margin is extremely small
This involves the issue of transaction level. The mentality of wanting to make a quick profit too much will only make you hungry and want nothing but excess. It is manifested as when doing transactions, unwilling to give up any market that looks at the internal breakthrough of the graphic form that still has some space, which can also be called "marginal market". If the k-line is strong enough, it will make you believe it, thinking that if it rises so sharply or falls so sharply, why can’t it fall below the resistance level? Sometimes even when the signal K line closes near the resistance level 1, you still take it for granted that the signal K line closes very strongly, so the resistance level 1 must be broken, and the resistance level 2 must be reached, so you enter field. But unfortunately, from a statistical point of view, this kind of trading opportunities with internal breakthroughs and little room, the total profit of long-term participation is negative, the winning rate itself is not high, and the profit-loss ratio is often less than 1/2, so there is no loss reason? This kind of trading mode with internal breakthrough in the graphic form and not much space is a shortcut to quickly and stably lose money.
There is no skill in playing horizontal candlesticks inside the graph, most of them are dogs that can bark-do not bite people. Of course, there are also some graphics that break through the K-line and swallow thousands of miles like a tiger, but this kind of market is relatively rare. The best trading opportunity must be when the entire graphic pattern is swallowed up by the signal k-line accompanied by the breakthrough. This is something that you can't ask for in the transaction. When you meet it, you follow it, but you can't force it.
4. Burn your butt when you hold a position, and you can't sit still.
When there is a floating profit, you are like a bird frightened, and at the slightest sign of trouble, you are so frightened that you throw away the position and run away in a hurry; Running in the original direction, holding positions with luck, or knowing that there is no strength to recover, unwilling to admit the loss and leave the market, burying your head in the sand like an ostrich, and carrying it to your death.
The frightened bird has too much fear, and the ostrich has too much hope. There must be a measure of fear and hope.
When there is a floating profit, when encountering a pullback, the position begins to be unstable, for fear that the cooked duck will fly again, and is eager to close the position. It is too easy to be affected by the fluctuation of the k-line. For example, when you are long, you have not encountered the Yinxian, and you will be scared away when you encounter the closing Yangxian with the long upper shadow. I matured a bit later and set a stop loss, but I always hope that the stop loss discipline will be strictly enforced next time. This time the k-line seems to be unable to hold on. Instead of hitting the stop loss later, it is better to withdraw now. This kind of psychology directly denies the rationality of setting the stop loss before: the reason why you set the stop loss at this position means that the trend may continue before touching the stop loss position, so why do you manually set the stop loss position? What about closing positions? Isn't that a contradiction?
Don’t be scared by the bearish K-line that has not touched the stop loss (when you are long). Trading is like commanding troops to fight. How can it work if you don’t have any ruthlessness or concentration? ! The performance of general demeanor in trading is to set a good stop loss, and let the market fluctuate, and I will stand still.
Excessive reaction to the reverse meaning K-line when floating losses and floating profits-violating principles, closing positions willfully, for fear that profits will be turned into nothing, and floating losses will expand (especially when there is no stop loss or the stop loss is too large); too much pursuit A high winning rate will lead to a floating loss when the stop loss is reached, and you are still numb and desperately hoping to get back your money. In fact, the least paranoid thing should be a high winning rate. After all, "children are the ones who tell right from wrong, and adults only ask about gains and losses". Traders should still be more pragmatic, don’t pursue those things with high chances of winning, that’s for show off, all you have to do is to have a surplus after balancing the profit and loss, and the surplus is good, even if you lose a few orders in a row, it doesn’t matter, as long as you can hold on to the profit Orders, following a wave of trends, what you need to focus on is the overall profit level after the sum of large and small orders.
The above four points are the manifestation of too much effort in trading.
Blindly pursue the opportunities of small cycles, trying to get on the train of the trend at the first time, but being confused by small cycles;
If you are eager to get on the trend train, the second mistake that often occurs is not waiting for the closing to enter the market, and it is often the case that you are dumbfounded after the closing;
Don't want to miss any tradable opportunities, the internal breakthrough of the graphic form, the marginal market close to the resistance, ruins people tirelessly;
When floating profit and floating loss, the overreaction to the reverse symbolic K-line makes you unable to hold the list and one-sided pursuit of high winning rate.
The bad tendency of these four points of too much effort and too much pursuit of perfection is the reason why the vast majority of traders are obviously very hardworking and very hard, but the trading results are worse and the losses are even worse. Pay attention to the word "degree" in everything, too much is too much. Being impatient and unable to eat hot tofu is also a vivid portrayal of these four points. These four points are the external manifestations of the strong desire to control the transaction. If you are too close to the market, you will always lose one-sidedness. It is not unreasonable that "distance produces beauty".
From here, we can also see the qualities required for trading: patience, courage, and confidence. Be patient and wait for the trading opportunity that meets the entry rules (multiple and strong); when the opportunity comes out, you must have the courage to rush in; after entering the market, you must have the confidence to hold the position firmly (trend survival line).
Transactions are like sand in your hand, the tighter you hold it, the faster it will flow.
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