People really want to open an order in three situations

The first is when you miss out. When others are making money but you are not, you will be anxious. Especially if you have taken a fancy to a certain target the day before but did not open an order, and it goes up again today, you will be doubly upset.

Therefore, it is easy to open an order hastily, regardless of the position and signal, and force it in. At this time, there is a high probability that you will be trapped if you rush in.

I used to do this often. When I saw a stock that looked good, I would buy it, regardless of whether it was in the middle of the range or whether there were any signals. I just had to buy it, and I would feel uncomfortable if I didn't. In fact, the reason behind this was very simple, that is, I was too impatient, anxious to make money, and anxious to get rich.

There is another psychological reason why I feel uncomfortable because of missing out. It is a subconscious arrogance. If others can make money, I think I can make money too. The superposition of these two psychological states will make me act impulsively.

How to get rid of these two emotions. Impatience may be a kind of anxiety. If it is an anxious emotion, see it, but don't touch it, let it flow like water. If you hold on to an emotion, that emotion will haunt you.

Arrogance, you haven't achieved amazing results, so what is there to be arrogant about? Always remember that this market has at least one good opportunity every month. So never be afraid of not having opportunities.

The second situation of rushing to open an order is to make up for the loss after a big loss. Shouldn't you be scared after a big loss and dare not open an order? Why do you want to make up for it in a hurry? What is the underlying psychology? Is it because your self-esteem is frustrated and you dare not face the reality? You need to make up for the loss quickly and then repair the frustrated heart? If so. Can other methods be used to repair the frustrated heart? I think it is feasible. First of all, you must firmly believe that it is a serious mistake to rush to open an order with a mental burden after a big loss. Secondly, if I can make the loss of money not lead to a frustration of confidence, then the problem does not exist.

Even if you place a bet based on the probability, the result of the transaction is random, so even if you do all the steps correctly, you may lose money or make money. Since the result is random and uncontrollable, it is not your fault if you lose money. Since it is not your fault, there is no need to feel frustrated. I did all the steps of the transaction correctly, but I lost money. I did nothing wrong. I should be happy because I did everything right.

If I didn’t do a certain process in the transaction correctly, then I should reflect on why I didn’t do it right. Why can’t I repeat a certain process without making mistakes like a machine on an assembly line? Am I controlled by my emotions? Or am I not focused enough?

The third situation of rushing to open an order is overconfidence. STRK's loss was caused by overconfidence. Continuous success made my self-confidence burst, so that I 100% recognized my judgment later. There were bad signals on the market several times, and I subconsciously blocked it. So how to detect overconfidence and get rid of overconfidence? From the result, overconfidence leads to big losses. It also leads to small losses, but when I lose small money, I will not seriously analyze the reasons. Why not analyze it? Because analyzing problems is very energy-consuming, and human genes determine that we cannot be in a high-energy state for a long time. Every time you analyze a problem, you put yourself in a high-energy state. How to put yourself in a high-energy state, you can use skills, and a few minutes of intense exercise will quickly put yourself in the state. Don't think that the wrong link is not important just because you don't lose much. Losing a lot of money and losing a little money can often be the same mistake. Therefore, every transaction should be reviewed, no matter how big or small, right or wrong, you must seriously summarize it.

“Why do I lose a lot of money sometimes?”

The reason is basically that you placed a heavy bet and the stop loss is unreasonable. If you bet 1 million and use 1% volatility as the stop loss, then the maximum loss is 100%. If you bet 500,000 and use 50% volatility as the stop loss, then the maximum loss is 250,000. It is precisely because of the stop loss problem that the subsequent bet is only half of the former, but the loss is 24 times higher than the former.

Therefore, placing a heavy bet and not setting an appropriate stop loss are the direct causes of losing a lot of money. So the solution is very clear, do not place a heavy bet and set a good stop loss.

Every time you place a big bet without realizing it, you must be vigilant, as this may cause you to lose a lot of money. Also, when you set a very wide stop loss or do not set a stop loss, you must understand that this may cause you to lose a lot of money. Calculate the specific amount of loss, stare at this number and think about it. Are you really willing to bear such a large loss? If you don't want to lose so much, then reduce your position.

After writing this, I no longer have the desire to place an order today.

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