A brief guide on how to control your impulsive behavior during trading:
1: Set a trading plan: Before entering a contract, you need to think about how you plan to trade. For example, how much money you are willing to invest, under what circumstances you will buy, at what price you will sell, and how much loss will prompt you to cut losses and how much profit will lead you to take it. Write all of this down, just like planning your route before heading out, so that you won't lose your composure during trading.
2: Control position size: Don't throw too much money into a contract at once; participate with a small amount of capital. It's like driving a car; you can't floor the gas pedal and speed recklessly; you need to leave some room, so even if you encounter market fluctuations, you won't panic due to significant losses.
3: Don't be swayed by emotions: During trading, if you see the contract price rise, don't get too excited too soon, thinking, "Wow, I'm going to make a fortune," and then blindly increase your position; if the price falls, don't rush and think, "I need to recover my losses quickly," and act impulsively. You must constantly remind yourself that the market is volatile and stick to your plan.
4: Learn to take breaks: If you feel yourself getting overly excited or anxious, take a break immediately. It's like when you get tired from running; you need to rest for a while. You can stop checking the trading interface, drink some water, take a walk, and let your emotions calm down before returning to check the market.
5: Review the trading process: After each trade, whether you made a profit or a loss, look back at how you operated. See if you followed your plan, if there were areas you did poorly, and how you could improve if you encounter similar situations next time.
6: Analyze market patterns: Study the market more, observe the prices. Generally, under what circumstances will prices rise or fall? Look for patterns within this. This way, you'll understand the market better, and during your next trade, you'll feel more confident and less likely to get carried away by minor fluctuations.