Many people know that frequent trading is not allowed, and that frequent trading is a taboo, it is wrong and should be avoided. But we tell ourselves again and again that we can’t trade frequently anymore, and we will chop our hands if we trade frequently, but we continue to trade frequently again and again.
Many people blame their frequent trading on their greedy mentality. Is this really the reason? I don’t think so. I think the fundamental reason why most people can’t control frequent trading is that there are no clear trading rules. There are trading rules but they are vague and not detailed enough, that is, there is no well-optimized trading system. This can lead to many opportunities that appear to be opportunities but do not appear to be opportunities. Especially when prices fluctuate rapidly, it is easy for us to regard irregular fluctuations as trading opportunities under the emotional background.
We know that the market will go up and down all the time, so it is very easy for us to feel that every moment is an opportunity. Rise is also an opportunity, and the road is also an opportunity. Anyway, as long as you think that the screen is full of opportunities, you want to make money all the time, so frequent transactions occur. In fact, sentiment is affected by the market. It is easy to be pessimistic when the market is falling, and too optimistic when the market is rising. Emotions are greatly affected by market fluctuations, so chasing ups and downs, or hunting for bottoms and peaks, is impulsive trading. For most people, especially for beginners, this is the main reason. If there is no basis, the natural society will be chaotic; if there is no obstacle to escape, the operation will be chaotic. If there are no strict rules, no matter how many oaths you swear and how many hands you cut off, you will still commit the crime next time. Under the condition that there are no rules, you swear to reduce frequent transactions, which is not wishful thinking. I have a deep understanding of this in my many years of trading. Only after countless times of pain and regret, I will improve after I have trading rules that suit me.
Most people, including me who just entered the market, think that as long as the market goes up or down in their world, it is an opportunity. Because as long as there is a rise and fall, there is a price difference, and there is a profit if there is a price difference. And the market is going up and down all the time, so there are opportunities all the time, why can't you operate all the time? At this time, it is difficult to talk about reducing the frequency of transactions, because they have no rules and systems, and there will be many profitable orders in frequent transactions, how to reduce them. Even reducing the frequency of transactions will not increase their success rate. If the frequency is low, the success rate is still very low, and failure is inevitable. For many veterans, although they have established trading rules to some extent, they are not detailed enough, clear enough, and there will be many opportunities in the market that seem to belong to you but do not belong to you, so at that time, it was difficult to clearly understand We know whether it is own chance. Most people are afraid of missing opportunities and have a natural urge to chase profits. In the face of crazy profits, people will forget the risk and choose the profit. So there will be too frequent transactions.
Fundamentally, the primary reason for frequent trading is the lack of a detailed and effective trading rule. Novices are most likely to make mistakes and veterans are also likely to make mistakes. Therefore, it is best for us to take every transaction seriously from the very beginning, and create trading rules and systems that suit us as soon as possible.
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