So what can save your heart from loss?

Is your mentality factor the main reason for your losses in the process of trading? Is it because of your continuous losses that you can't strictly follow your own system? Your thoughts will change at every stage, so does successful trading also have mentality? Let's chat today.

Traders have to face the test of a basic contradiction, that is, how to maintain discipline, focus and confidence in uncertain situations? (Welcome to pay attention to the public account Mohui Finance) Smart traders (those who think in terms of probability) have the same negative energy as ordinary traders for the wrong meaning, but as long as they normally define trading as Probability games, then what they care about is only the probability of entering each order, and it exists alone.

After traders learn to think in terms of probability, they will be very confident in their overall success, because they decide to make this list only when they meet the high probability. This high-probability market stems from their familiarity with and control over historical market conditions. In each review order, gradually increase your confidence, and be aware of the winning rate of your trading system, the number of consecutive losses, the largest single loss and the number of consecutive losses. Let you adapt freely in the market where losses occur in the future.

Before we enter the market, we will consider the risk first, study the risk ratio of this order, and each order is individual. Some people say that adding positions is a special case!

When you increase your position with profit, because you may imagine that because the previous order was profitable, this high probability will also be. But in fact, the correct idea is that the previous profitable order is sharing the risk for your order, because each order is independent, and the natural risks are also independent.

Regarding the order of increasing losses, there are two ideas. One is that the trader is overconfident in his own wrong system rules, and the other is that he is eager to share the loss with a smaller ratio, so as to seek inner self-comfort.

The following is a practical case of my moving average system to see if you can get rid of your mentality factors.

The above three pictures are quite representative; they are whether you dare to get in the car when the trend starts. Do you have a strategy to deal with small shocks and upward movements? The last one is when it's time to turn, whether you still want to follow the trend to make orders.

Trading is like this. The consistent profit you pursue exists in your heart, not in the market. The reason for most losses is not skill or market inadequacy, but your attitude and belief in wrong losses, and your tendency to become reckless when you feel happy.