What is the crux of trading losses?
Why do you always lose in trading?
Why do you work so hard to adjust your trading system but still fail to 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 key point. Interested friends can read it in depth. The above questions are encountered by almost all traders, and I have experienced and suffered through them, so I understand deeply.
Let me share a few points:
1. All technical analysis available in the market is effective; for the same market condition, different technical analyses can yield results that are basically close. I believe that technique is not about good or bad; what suits you is what is right;
2. Everyone's trading style is different, and suitable time frames are also inconsistent; whether it's multi-timeframe or single-timeframe, what matters is that it suits you;
3. Everyone's analytical and processing abilities are different; choosing a simple trading logic is the optimal choice;
4. Integrating knowledge and action is very difficult; it's almost impossible to achieve; choosing easy knowledge and action is the way to solve this problem;
The crux of solving trading losses is to place trading in simple and smooth market conditions and to avoid engaging 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 knowledge-action integration, you still cannot make a profit;
On the contrary, in smooth and simple market conditions, you will find that all technical analyses begin to be effective, and there is a large profit potential, and knowledge and action are integrated.
Traders should not let themselves trade in complex markets and should not add burdens to themselves. Human capabilities are limited; profits come from the market, while losses are controlled by oneself.
Above, shared with you for encouragement! #Understanding Candlestick Patterns