Decrypting the failure dilemma of 95% of traders, have you fallen for it?
In the world of trading, why do 95% of people return empty-handed? In fact, it is these common mistakes that are to blame. To succeed, you must avoid these minefields:
1. Going against the trend: Going against the market trend is undoubtedly self-sabotage; following the trend is the way to go.
2. Out-of-control fund management: Blindly investing without considering your own risk tolerance. A reasonable approach is to strictly control each trade's loss to 1 - 5%.
3. Chaotic strategies: Using multiple strategies at the same time without mastering any. It's better to stick to one effective strategy and delve deep into it.
4. Ignoring trading records: Failing to record the trading process, mindset changes, and lessons from losses makes it hard to grow from failures.
5. Holding unrealistic fantasies: Want to get rich overnight with a small capital? Be realistic; substantial profits often require strong capital support.
6. Being consumed by greed: Always wanting to squeeze out the last penny from the market often results in a fruitless endeavor.
7. Being swayed by fear: Worrying about gains and losses while trading; good risk management can help stabilize your emotions.
8. Subjective conjecture: Predicting the market based on personal biases instead of reacting to market signals.
9. Frequent trading: Pursuing the number of trades while ignoring quality. Patiently waiting for the best opportunity is far more important than blind operations.
Remember the key rule: whether profits or losses reach 10%, you should temporarily leave the market. Maintain discipline, do not be greedy when profitable, and do not impulsively seek revenge when losing. Know that the cultivation of a professional trader cannot be separated from discipline, risk management, and emotional control.
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