Any trading system or model will experience favorable and unfavorable periods. The favorable period is naturally pleasant, while the unfavorable period is difficult to endure, and many people fall during the unfavorable period. When there are more than a dozen consecutive losses, many people will find it unbearable.
For those who do not have a trading system and rely entirely on emotional trading, they will feel anxious regardless of whether the market goes up or down, and it is not surprising that they will eventually be eliminated by the market. Whether you can survive the adverse period depends on two key factors: deep thinking and firm belief.
The two complement each other. If you think deeply about your trading system and believe in its effectiveness and stability, your belief will be stronger and you will naturally be able to stick with it longer.
Just like betting on heads or tails when flipping a coin, even if you get heads ten times in a row, you will still firmly believe that the probability of getting tails next time is still 50%. Because this simple "trading system" is easy to understand, it is also easy to strengthen your belief.
In addition, the adverse period is also the best time to polish the trading system. No one is willing to change when things are going smoothly, and only in pain will they force themselves to reform. Many years ago, I experienced a dark moment in the A-share market, when I made major adjustments to my trading system, especially in the position strategy. Faced with the secondary market under the trend of the market, I can only operate with a light position, because the duration and success rate of the market are much worse.
Only by thinking deeply and persisting in your beliefs, and by overcoming a period of adversity, can you truly become a master trader.
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