Why is it inevitable to die without a trading system?

In fact, if you lose money and cannot make stable profits, it is not your problem at all, but the problem of the market. People who work as hard as you should make money with their eyes closed

…..

Just kidding…

Trading is a subject, just like learning the multiplication table to learn mathematics, and trading must have a complete trading system. Without a trading system, the following problems will occur. How can you make stable profits:

1. Emotions dominate decision-making and destroy rationality

Chasing up and selling down: When there are no clear rules, greed (chasing up at high positions) and fear (cutting meat at low positions) will dominate trading, leading to high buying and low selling.

Overtrading: Emotional fluctuations may lead to frequent operations, increase transaction costs and the probability of mistakes.

Retaliatory trading: Eager to make up for losses after losses, it is easy to take risks with heavy positions and magnify risks.

2. Lack of consistent rules, uncontrollable results

Random operations: The entry, exit, and position standards of each transaction are not unified, and profits depend on luck rather than logic.

Unable to verify effectiveness: Without systematic records and statistics, it is impossible to judge whether the strategy is effective in the long run.

Survivor bias: occasional profits are mistaken for ability, covering up actual risks.

3. Risks are out of control, and a single loss may be fatal

No stop-loss rules: an extreme market situation may lead to huge losses (such as black swan events).

Chaotic position management: heavy bets based on feelings, sharp fluctuations in profits and losses, and it is difficult to survive in the market for a long time.

4. Unable to iterate and optimize, progress stagnates

No basis for review: lack of transaction records and data analysis, it is difficult to find own problems.

Fragmented experience: random operations are difficult to accumulate systematic experience, and progress is slow.

5. Poor market adaptability

Single strategy failure: when the market style changes (such as the trend turns to shock), non-systematic traders may continue to lose money.

Unable to capture probability advantages: long-term profits rely on the "positive expected value" strategy, while random transactions often have negative expectations.

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