Why do some people become more stable in contract trading, while others become more chaotic?

The answer is just two words: Discipline vs. Greed

1. Discipline Group

Traders in the discipline group always have a clear understanding before entering the market, knowing what they want to do and how to respond to market fluctuations.

Three things are clear in their minds:

Where to enter: Determine the entry point based on technical analysis or strategy signals.

What to do if wrong: Clearly set a stop-loss point, and once a mistake is judged, stop losses in time to avoid further losses.

What to do if right: Set a take-profit point to protect profits and move forward steadily.

Trading Style:

Do not chase highs and sell lows, do not bet on reversals.

Only wait for verified signals and execute according to the trading model.

Take-profit is to ensure stable growth of profits, and stop-loss is to protect future trading opportunities.

Mental State:

Emotions do not interfere with decisions, can remain calm amidst fluctuations, and strictly execute their trading plans.

The core of professional traders is: Rules determine trading, emotions do not dominate.

2. Greed Group

Traders in the greed group are often driven by the short-term fluctuations and emotions of the market, lacking a stable trading plan, and are prone to impulsive decisions.

Common Characteristics:

Seeing a large bullish candlestick, they aggressively increase their positions, fearing to miss the 'bull market' opportunity.

Initially planning small stop losses, but unwilling to accept losses, they gradually hold onto losing positions, ultimately worsening their losses and getting deeper into trouble.

Even with paper losses, they still hold onto the mindset of 'just one more push and I'll exit', never willing to close their positions.

Trading Creed:

"As long as I haven’t blown up, I can still keep gambling."

This mindset causes them to lose themselves in the ups and downs of the market, often leading to irrational decisions due to emotional responses.

3. The Essential Difference Between Discipline and Greed

Discipline Group:

Trade based on rules, always adhere to their trading plans, patiently wait for opportunities, and rely on long-term stable strategies to profit.

They treat contract trading as a career, focusing on accumulating experience and strategies, obtaining stable and continuous profits.

Greed Group:

They rely on emotions to decide trades, driven by short-term stimuli, often making impulsive decisions without careful consideration.

They treat contract trading as a gamble, hoping to make up for losses through random 'big rises', ultimately leading to severe capital depletion.

4. Summary: Contract trading does not test technology, but self-control $BEAT