Want to know why you always lose in trading?
What steps does a newbie who can't drive need to take to drive on the highway alone?
1. You must first go to a driving school, pay to learn the traffic rules, and find an instructor to learn how to drive, obtaining a driver's license; only then do you have the qualification to hit the road.
2. Does getting a driver's license mean you can drive? Not necessarily. When I obtained my driver's license, I still couldn't drive because the school only taught me how to turn and steer at certain points, which is a form of exam-oriented education. Even with a license, I couldn't drive; if I wanted to drive alone, I had to find someone to practice with, and only after practicing for dozens of hours could I drive alone.
3. Even if I can drive alone now, I still can't go on the highway; I must wait a year before I can.
A newbie goes from being able to drive alone to driving on the highway in 4 steps:
Go to driving school, take the driving test, and obtain a driver's license → Practice driving → Drive alone → Accumulate experience for 1 year → Drive on the highway.
So what about trading? Compared to driving, shouldn't trading as a professional skill require deeper and longer learning? Trading is also a professional skill, and very specialized. Not to mention trading, even bricklaying is specialized; in Australia, moving bricks also requires going to school to obtain a professional certificate.
Since trading is also a professional skill, first, because there is no dedicated school for trading, you need to find a mentor to guide you in the basics, such as which books to read and what core trading knowledge to learn, so you can avoid detours;
Secondly, you need to practice on your own for a while, then try to play and accumulate experience, reflecting and understanding independently;
Finally, after at least a year of playing, you can start to operate with leverage.
Why do many people lose in trading?
They skip steps 1 and 2 and jump straight to 3, which is like driving on the highway without a license; how can you avoid an accident?
Skipping 1 and 2 and going straight to leverage, how can you avoid liquidation, how can you not lose everything?
If you can treat trading as a professional skill to learn, following the mindset of getting a driver's license to engage in futures trading, at the very least, you won't lose money, right?
Think about it carefully.
