In trading, we always hold various expectations for the future, hoping the market operates according to our analysis and judgment, hoping that each trade will yield profits. However, these unrealistic expectations often become stumbling blocks for traders. They not only distort our objective perception of the market but also severely affect our emotions and decisions, leading to deviations in trading results.
1. Why are unrealistic expectations harmful?
Expectations stem from our experiences and beliefs, serving as a hypothesis about the future. When traders impose their subjective expectations onto the market, they lose neutrality and an open mindset. When the market does not develop as expected, emotional fluctuations arise, and disappointment, anxiety, or even anger may lead traders into irrational decision-making.
Worse still, the brain activates the 'pain avoidance mechanism,' selectively focusing on information that aligns with expectations while ignoring signals that contradict expectations. For example, when a trend reverses, stubborn expectations may prevent us from seeing clear market changes. This short-term emotional comfort severely undermines a trader's judgment.
2. The core of trading lies in conforming to the nature of the market
The essence of the market is filled with disorder and uncertainty. Trying to completely control this environment or relying on predictions is futile. We need to acknowledge that we cannot control market movements and focus on 'responding' rather than 'predicting.' The core of trading is to adapt to market changes through a rule-based system, discovering opportunities in chaos rather than forcing the market to meet our subjective desires.
3. How to let go of unrealistic expectations?
3.1. Establish a resilient mindset
A resilient mindset requires us to let go of our attachment to outcomes, focus on the actual market trends, and accept its randomness and diversity. The goal of trading is not to prove oneself right, but to conform to the trend and seek opportunities for profit.
3.2. Adhere to rule-based trading
Rules are the lifeline of trading. Whether it is stop-loss, position management, or trading strategy, strict execution is required. The existence of rules helps us find stable anchor points in an uncertain market, avoiding being led by emotions.
3.3. Accept losses
Losses are an unavoidable part of trading. Accepting losses and promptly stopping losses is a fundamental quality of professional traders. Each small loss is feedback from the market, helping us optimize strategies instead of being a basis for self-denial.
3.4. Cultivate observational skills
Excessively judging the market only increases biases; traders need to cultivate observational skills, focusing on the actual information conveyed by the market rather than subjective interpretations. Becoming a follower of the trend rather than an opponent is the way to long-term survival.
4. Liberate from expectations and return to essence
The highest state of trading is 'acting without attachment,' not being obsessed with predicting the market, but focusing on responding to its changes. As Mark Douglas said: 'Without specific expectations, there will be no restrictions on market performance. This way, our thinking can remain open and see the essence of the market.'
The biggest enemy in trading is not the market, but our own unrealistic expectations. Letting go of these burdens allows us to interpret the market with a more objective attitude, conforming to the trend and achieving stable profits.$ETH $BTC #加密市场回调 #FTX赔付 
