What is the root cause of trading losses?
Why do you always lose in trading?
Why, despite your efforts to adjust your trading system, do you still not make a profit?
Why is your strategy sometimes effective and sometimes ineffective?
What is the crux of the matter?
Today's article should be a summary of all the previous articles, and I believe it is the finishing touch. Friends who are interested can read it in depth. The questions above have been encountered by almost all traders, and I have experienced them too, and it has been painful, so I feel deeply about it.
Let me share a few points first:
1. All technical analyses available in the market are effective; different technical analyses on the same market conditions can yield similar results. I believe that techniques are not inherently good or bad; what suits you is what is right;
2. Everyone's trading style is different, and the suitable time frames are also inconsistent; whether it's multi-timeframe or single-timeframe, as long as it fits, it's good;
3. Everyone's analytical and processing ability is different; choosing a simple trading logic is the optimal choice;
4. It is very difficult to achieve unity of knowledge and action; it is almost impossible; choosing the easier path of knowing and doing is the solution to this problem;
The root cause of trading losses is to place trading in simple and smooth market conditions, avoiding participation in complex and volatile markets.
Human cognitive and behavioral abilities are limited; complex and volatile markets render trading logic meaningless. Even if you are very skilled and achieve unity of knowledge and action, you still cannot profit;
On the contrary, in smooth and simple market conditions, you will find that all technical analyses start to become effective, and the profit potential is significant, achieving unity of knowledge and action.
Traders should not put themselves in complex market conditions; do not add burdens to yourself. Human capabilities are limited, profits are given by the market, and losses are controlled by oneself.
The above is a shared encouragement! #Understanding Candlestick Patterns