Are you really trading forex? Is it to make solid, steady money, or just to enjoy the gambling-like thrill of successful trading?

Why do I ask this? Because more than 90% of people are doing foreign exchange on the surface, but the essence is gambling. By feeling to do a single, like to chase high and fall, heavy warehouse, against the trend to carry the single, these are gambling mentality to do trading performance. Pay attention if you also have these gambling behaviors! Gambling mentality hardly makes you a trade winner!

If you want to make real money, you have to cut out the gambling-like thrill of trading. If you want to enjoy the feeling of successful trading, you must not make a steady profit. Because that feeling can lead you astray and make a lot of bad judgments. However, the biggest temptation of this trading market is that the market fluctuates all the time, which will make you mistakenly think that you miss a lot of opportunities to make money.

And this trading market has no rules to restrict your behavior, all the methods of loss control must rely on your own. So in the forex market, the percentage of winning money is lower than gambling. Only if you can help yourself, discipline yourself, and control your own behavior and psychology can you avoid gambling-style transactions.

So how can you avoid gambling?

First, it is to analyze the market and gain insight into the market trend. Buffett said that risk comes from not knowing what you are doing, and when you do not know what you are doing, you enter with your own feelings, which is essentially gambling.

Every time we trade should be based on evidence, only learn to use fundamentals and technical analysis of the market, understand the market sentiment, such as the previous Russian-Ukrainian war, will affect the trend of gold and crude oil prices. In this way, the trading decisions we make are scientific and rational, rather than just relying on mindless guesses to rise or fall.

Second, it is necessary to formulate a good strategy. Because many investors are often happy to do trading, the market step by step, there is no macro structure and long-term vision, at this time we need to have a clear plan and effective strategies. If there is some good market analysis logic, then our plans and strategies can give it an advantage and increase our chances of success in the market.

Another thing is to think about trading in terms of probability. In a coin toss game, you know that there is a 50% chance that heads and tails will come up, but you can't accurately predict whether the next one will be heads or tails. The randomness and unpredictability of trading is similar to that of gambling games, but it doesn't affect your long-term profitability. As long as you have a set of analysis of the market, probability can be profitable trading system, whether it is manual orders, or the use of procedures to place orders, you have mastered the weapon of profit. So don't bet on any one trade, but take a long time and look at the market objectively.

Finally, it is to do a good job of risk control, do not chase the rise and fall. I don't know if this will happen when you make a deal? When the market trend, immediately increase the position, even heavy position, did not expect the market suddenly reversed, resulting in serious losses; When the market is gradually against the trend, I do not want to stop the loss immediately, keep the principal and the only profit, but I think of carrying the single, I believe that the market will come back, and the result is carrying the warehouse. These acts appear to be doing foreign exchange, but in fact they are gambling.

One of the best ways to avoid turning trading into a gamble is to control risk and not chase the bull. Know your risk line, set your stop loss, and get out when it's time.

So friends, the gambler mentality should not, do foreign exchange should be a long-term income, rather than a big gamble, gambling may be able to make money once or twice, but not long, only rely on scientific trading system, in order to go further in the foreign exchange market.