Don't pursue certainty too much in trading and must accept losses
1. Trading has nothing to do with effort
Trading is not successful simply by relying on effort. Successful trading requires a deep understanding, similar to the process of "becoming a Buddha". This has nothing to do with time, but more to do with one's inner state and understanding of the market.
2. Uncertainty and resistance to losses
Most people are educated to emphasize the certainty of knowledge, while trading is inherently full of uncertainty. The only thing that can be determined is stop loss. Many people resist losses and mistakenly pursue huge profits. Truly successful traders understand that huge profits cannot last, and they are more focused on making steady profits in the market.
3. Accepting losses and probability games
Trading is a probability game, and the key is to accept losses. Even if your winning rate is 50%, there is still a 50% chance that the next trade will be a loss. Therefore, stop loss is essential, it is the fate of trading.
4. Profit and loss ratio and stop loss
Some trading strategies with higher winning rates are often accompanied by larger stop losses and holding periods, while traders with lower winning rates can also make money, provided that their stop losses are smaller and the profit and loss ratio is reasonable. This is a rule in trading.
5. The core of trading
In short, trading is a game of profit and loss ratio probability about stop losses. Understanding and optimizing these elements will be the key for every trader to survive in the market.
By accepting uncertainty and optimizing stop loss strategies, traders can find their foothold in a complex market environment. This change in mentality will be a bridge to successful trading.