How Is Stock Trading Thinking Made?

paction

Trading is a game of probability.

Imagine we are tossing a coin. I win a dollar on the front. You win a dollar on the opposite side.

It's simple.

The front and the opposite sides are half the time, and none of us can win.

However, when I did not know, you changed a coin for filling the lead.

Each throw 100 times, 49 times positive, and the other 51 times.

You now have a license to print money.

Let's call it the "reverse trading system".

All you need to do is sit still and always put the other side in the opposite direction.

Finally, you will win all my money.

(for everyone else).

All trading systems give you a favorable "bias" - something more likely to happen, no matter what trading system you use.

Let's see: breakthroughs in the form, trend following, the number of Fiji series, moving average, channel following, oscillation signal, brin line, swing index, opening gap...

Does it include your system?

You are relying on a definite bias.

In essence, the trading system is saying, "when x happens," Y usually follows closely.

Sometimes this is not the case, though most of the time.

And all trading systems do help you identify high probability opportunities, build positions correctly, protect your capital, and increase your profits.

Some systems are better than others, but don't be obsessed with searching for the perfect system - just as the market's "mysterious hand" (difficult to understand the Holy Grail) has done -- profit from your requirements and never make mistakes.

Find a trading system you like, a system that you feel comfortable, and a system you can understand.

Then insist on using it, we must persist.

A calm, disciplined trader will choose a general system to make money with it.

A nervous and paranoid trader will choose a "perfect" system and then lose money.

Be-all

All pactions involve managing risks and obeying the oldest rule in the universe: probability.

Two of trading thinking training: controlling investment is the way to win.

The biggest mistake you can make as a trader is to invest too much money in a paction.

The more you invest, the greater your emotional pressure will eventually overwhelm you.

More seriously, this kind of emotional injury is hard to repair.

Most trading novice build heavy positions, hoping to get rich overnight.

Experienced traders know more.

In the short term trading, there will be a lot of pactions, and a lot of big losses will soon eat up your funds.

A good short lived trader can only invest a very small proportion of his capital to any paction.

If you do not have much capital, the preferred trading system should have a very close stop.

Also consider short-term charts, such as 1-5 minute charts, so that losses can be minimized.

Overconfidence can cause huge risks.

"Hi.

The front has been released 10 times in a row.

Let's bet half of the money on the reverse side.

"

The problem of such a "certainty" paction lies in: (1) the market rarely needs to go; two) others also believe that it is certain and active participation, so when they make mistakes, they aggravate mistakes (for example, empty or somersault).

Each time a small percentage of the paction takes a risk, you will be more relaxed and deal better.

Three of trading thinking training: how?

Do your subconscious mind want to lose money?

It is easy to see self destructive tendency in the market, especially among intraday traders.

When prices dance around your eyes, they catch you tightly.

You begin to feel as if it is teasing you.

This is why you must be very careful to avoid emotional pactions.

If you are hot blooded and explode at any time, you will have one of the worst and worst experiences in the market.

Don't bring emotions into the trade.

Remember that the current paction is just one of a series of long trading experiences.

Keep this in mind and never invest too much in any deal.

You must treat yourself as a professional trader.

At the beginning of every trading day, give yourself a few minutes before the market opens.

Close your eyes and observe the market in the imagination, as if you can see the instant charts on your computer screen, and the prices are spinning up and down.

Watch yourself enter the deal.

Notice that you feel relaxed.

You remain vigilant, but calm, totally unemotional.

Observe how the price changes after you enter and how it approaches your stop loss point.

Your deal is losing money. Pay attention to what you see in many of your trading scenes. You are not emotional.

Completely calm.

You start another paction.

I made money this time.

Once again, you feel relieved.

These are all part of the paction.

You need to practice, and you must always do this to benefit.

Whenever you start to feel nervous and unable to concentrate, you can practice.

The advantage of this technology is that it is free, and you will benefit a lot.

Four of trading thinking training: day but three

The best time for intra day trading is usually first, second hours after the opening of the main market.

Some traders also like to trade in the last half hour before closing the market.

These periods are the most dynamic, creating a good trend in real buying and selling.

Many traders follow the rules of "3 breaks".

By limiting only three pactions a day - the most - you can greatly reduce the pressure.

You will be more sensitive and less prone to make mistakes.

You also ensure that you avoid a "suicide day" - when you continue to work hard to make up for the last loss, you lose successively.

When you leave the market and read these words, you may feel that you can never fall into that trap.

However, it is surprising how many traders can be dragged away by bad luck when losses are flying like snowflakes.

Keep in mind the proverbs - tomorrow is the beginning of the new.

Take it easy.

Don't trade 40 hours a week.

Profits are accumulated.