After two months in the plaza, I found that most of the friends trading contracts are losing money, so I want to share some of my summarized experiences with everyone.
Insights from a knowledge blogger who is not a professional trader, summarizing trading experiences.
Isn't it common to ask oneself: Why is it always me who loses money? Why do I always fail to execute my trading plan, even though I clearly made one? Why do I know what to do, but just don't do it? Why is it that in the financial markets, the ones who lose money are mostly retail investors? How many retail investors can truly make consistent profits over the long term? And how many people, after losing money, still refuse to accept it and hold on stubbornly? How many really understand how they gradually lost money? The reasons why friends tend to lose money are roughly as follows:
Being led by emotions, chasing when you see a rise, and panicking when you see a fall results in trading becoming more frequent and increasingly chaotic.
Lacking sufficient knowledge and experience, your understanding of investment trading is shallow when you first enter. You don’t understand basic market principles, won’t do technical analysis, and don’t even mention in-depth research on fundamentals and industry conditions. You often just follow what others say or buy.
Without strict risk control and trading plans, it comes and goes as it pleases.
Information is always inferior to institutions and large players; there are always some who know in advance or are manipulating behind the scenes, while retail investors are often the last to receive the news.
Particularly inclined to operate against the trend, always thinking about bottom-fishing and trying to catch the top.
Consistently pushing positions to 100%, leaving no room for maneuver, aiming either for overnight wealth or total loss.
The worst thing is to stubbornly hold a position, clearly wrong yet unwilling to stop-loss; this is a major taboo.
Having too strong subjective ideas, changing trading plans at will, with no discipline whatsoever.
Some experiences that can help you survive a bit longer, or even start making money, are:
Everyone has the market environment that suits them best. Adjusting your strategy to fit your personality is the most natural.
If you keep staring at a coin and keep losing, it doesn't necessarily mean there's a problem with your system. It's very likely that the coin itself is a trap; decisively give it up, and you'll suddenly find the world is peaceful.
Human nature has its weaknesses, and trading systems can never be perfect. Learning and improving weaknesses is a long process, so losses are a normal part of trading.
The simpler the tools and indicators you use, the closer you can get to the essence of the market. The more you pile on, the further you move away from the truth.
Analysts can show you a pile of data, but that data is definitely not your reason for placing an order directly.
Trading is ultimately your own business. Just learn from those who truly resonate with you and are genuinely excellent; otherwise, the market will always be a back-and-forth between bulls and bears, and the money lost will be your own.
Never let yourself trade with a full position; keeping some cash is your confidence to survive in the market.
The root of every liquidation is a sense of luck; managing your position is the key.
There are no living Bodhisattvas in the market to save you from suffering. The news you see is often what others want you to see; the market always holds more reliability than news.
Trading cannot be perfect; only engage in the markets you are best at. As long as you can make money, you are always right.
In the end, those who persist will always be fewer, but those who survive often understand these simplest truths.