🥹The Importance of Psychology in Future Trading
👉Future trading has a tremendous allure. Because as long as you are right about the trend, you can see profits continuously jumping, and the return on investment can be so high that... it exceeds imagination.
- Some people change their lives with just one Future order, but there are also those who lose everything, falling straight down from great heights into the depths.
I myself have also gone through all the emotional stages with Future; there were times of extreme excitement, and times of near-total collapse. Below are the psychological stages that almost everyone will go through:
👉Stage 1: Greed
Greed is what always influences our decisions, both when making a profit and when incurring a loss. Always wanting a little more, constantly thinking you can win more.
👉Stage 2: Fear
Fear of price reversal, fear of making the wrong decision, fear of losing money. This fear causes you to hesitate, losing your clarity when making decisions.
👉Stage 3: Excitement and Frustration
When in profit, we can easily become overly excited; when in loss, we can easily fall into a state of frustration. Both of these emotions are extremely dangerous.
👉Stage 4: Loss of Control
Excitement pushes you into reckless trading. Frustration turns into a "revenge against the market" mentality, causing you to lose even more.
The core of Future Trading does not lie in knowledge, but in psychology. You must keep your mind in a balanced state:
- Accept losses when wrong.
- Know when to stop at the right moment when you have enough.
If you let the desire for revenge or recovery influence you, then even if you trade a thousand more times later, you will always be a loser, and the first loss will be losing to yourself.