Even if you know the ways to die, you still get killed. Don't believe it, it's still repeated to this day, you think you can get away with it? It is extremely easy to lose money in the investment market, but it is very difficult to make money, in order to become a master who can make money, only to study the method of making money, and then long-term replication.
Today, I will talk about the 8 reasons why most people lose money, and everyone will take their own seats and face their trading behavior, which is not far from profit.
1, carry more than loss
This is the most tragic way to die. This way of death is basically the most vulnerable to two groups of people, one is a novice, one is an expert (and even some masters). The reason why this technique can be popular and pit many people to die is that the process of resisting floating losses is full of hope and expectations. Cut the warehouse, not only the money is bound to be gone, but also admitted that he made a mistake, the kind of despair on the trader's blow in the moment of cutting the warehouse is huge.
The novice can resist the ups and downs mainly because the ignorant are fearless, do not know the cruelty of this way of death, and are confused to be killed; Old hands are too confident, with years of trading experience, it seems to see life and death, but did not think that history is not simple repeat drop, see life and death then die for you to see. The worst victims of black Swan events are often veterans.
2, against the trend to increase the position
Speculative trading is indeed a game that can multiply a trader's greed. Contrarian warehouse is the most serious loss, the most explosive warehouse operation, no one. For example, if you set 1 hand in the falling market, at this time if you make up 1 hand again, the market continues to fall, then the loss generated is double, the principal loss is faster, and the warehouse is also faster.
It's like blowing up a balloon. It's gonna explode. The final result, after several years of hard work, one night back before liberation, said that the trend is to increase the warehouse after the explosion of trading.
3. Trade frequently
There are many disadvantages of frequent operation, too tired, for a long time, physical strength, mental fatigue, and easy to impulse, leading to misoperation. The fundamental reason why most people cannot control frequent trading is that there is no clear trading rules; There are trading rules, but vague and not detailed enough, resulting in many opportunities that seem to be their own opportunities, but also seem to be not their own opportunities, in the context of price fluctuations, people are easy to emotional, they are all as their own trading opportunities.
4. Trading too many varieties
There are dozens of varieties on the foreign exchange trading software, each variety has its own fundamentals, often you go a wave I go a wave, a lot of trading novices each want to get involved, follow these varieties.
In fact, each variety has its own characteristics, there are also trend characteristics, all varieties want to do, that each variety you do not understand, which varieties are not good, trading can only be a loss.
5. Change indicators frequently
Let me ask you a question: How many indicators do you know?
According to an incomplete data on the Internet, more than 80% of traders have learned more than 10 indicators. Why learn so many indicators? Because most people have a misunderstanding about indicators. We want indicators to predict the trend of the market, to make more money than we lose, and to help us be financially free.
After learning to use these indicators, found that their performance is unsatisfactory, profit is good for a while, bad for a while, so learn to use, use the loss, loss, continue to lose, continue to change. Every time the index is changed, it feels that it is about to win, and after a period of time, it begins to lose money.
6. Emotional trading
Each K line has a smiling face and a crying face, the market is still the same market, either rising or falling, and the process of holding positions has shown a thousand sides. Looking back at those panicked people, while looking at the rise, while looking at the fall, constantly suggesting themselves, clearly holding a short order, but always thinking about things after the rise, this is not called prevention, this is just the distrust of their own trading panic.
In the past, in the rush to close the position in anxiety and fear, and forget their trading plan, and can not shake off the frustration caused by this trading loss for several days.
7. You like to guess the market
There are always a lot of people who like to predict in advance where the market is going to go, right? Where will it fall? Actual combat is clear, forecast is necessary, the key is not to believe in the forecast. These smart little partners follow their own forecasts again and again, strengthen their own forecasts, order profits, by feeling now look at a profit position, orders are covered, now look at a stop loss position, open positions by feeling, close positions by mood, this is very gambling what is the difference?
8. You can't make a profit
See the market, the order also entered, the market has just started to close the position, no matter how confident in the market when entering, no matter how much psychological construction was done before entering, the hand that closed the position seems to be not his own hand, is not obedient. There is only one reason: fear. Has become a bird of fear in the market, closing positions is an instinctive reaction of fear.
Normal trading results have two possibilities: stop loss and stop profit. The result of this kind of trading is only stop loss, no stop profit, profit may have been completely gone, only loss.
Trading is something that needs to be done with a deep heart. It takes deep learning and thinking, constant practice, and tempering of one's own mind to become a thing.