Why is it said that “psychology is the key to success in trading”?

交易指南 · 2023-12-12T03:46:00.000Z

A very successful senior futures trader in Singapore had a major influence on my futures concept. After I did a period of Philippine futures trading, I made a lot of profits and became a profitable banner. Although I was a little proud, I always felt that I had no psychological confidence, so I asked him for advice. "Although I have made money, I feel uneasy. I don't feel much progress in technology, and I don't feel that the market feeling is significantly different from the previous one." "Yes, it's all about psychology!" His extremely sure tone left a deep impression on me. That tone and expression were fixed in my mind, and they are still so clear and real many years later! The saying "Victory lies in psychology" has a greater positive and beneficial impact on me than the concepts of drawing methods and following the trend that this master emphasized before, and it has a greater positive and beneficial impact on me than any futures book.

A very successful and experienced futures trader in Singapore had a significant impact on my futures philosophy. After I traded Philippine futures for a while, I made a lot of money and became a profitable banner. I was a little proud, but I always felt unsure, so I asked him for advice.
“Although I made money, I didn’t feel at ease. I didn’t feel much improvement in technology, nor did I feel that the market was significantly different from before.”
"Yes, victory lies in psychology!" His extremely affirmative tone left a deep impression on me.
That tone and expression are fixed in my mind, and they are still so clear and real many years later! The influence of the phrase "winning in psychology" on me is greater than the concepts of drawing methods and trend-following orders emphasized by this master before, and it is greater than the positive and beneficial influence of any futures book on me.
First of all, this sentence gave me enough confidence when I was confused. It turned out that I had touched the pulse of winning intentionally or unintentionally. As the saying goes, "The great way is simple, and the true teaching is just one sentence." In the subsequent trading practice, I have a deeper and deeper understanding of this sentence.
How to win psychologically? First of all, you should have a comprehensive understanding of futures from macro to micro before entering the WTO, which will give you sufficient reasons to believe that the market can be defeated. Full confidence comes from a full understanding of the market. Secondly, you should also have a comprehensive review of yourself. What are your advantages in the futures market? How to play them out? What are your shortcomings? How to avoid or show them as little as possible? It is said that only by knowing yourself and the enemy can you win the battle.
It must be clear that you come here for huge profits and take only minimal risks. You are not doing fair trading with the market. Instead, you are holding the initiative of your destiny, looking down on others, risking a small fortune, using flexibility to counter mechanicalness, and activeness to counter passivity. And you have a complete set of operation plans and contingency measures. In this way, you can say that you have already won psychologically before entering the market (from this point of view, on the contrary, if you gamble your life in the market, then you have already lost psychologically before entering the market. This is one of the reasons why I remind you not to do it). If you give up your theoretically possible initiative in actual operation and are led by the market, you will become a typical person who is out of touch with theory and action, and a person who has completely failed psychologically. Profits from futures will become a fantasy.
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