Hello everyone, I’m Yan Chi, crypto-yan, an old player in the cryptocurrency circle. It’s been nearly half a month since I wrote a long article to sort out the market. Today happens to be the weekend, the market lacks liquidity and there are not many market fluctuations. So I’ll sort out the article and tell you how to control your emotions in trading.
How should we control our emotions?
As traders in the market, what emotions do we all have?
I think there are the following points:
1. Fear,
2. Anger,
3. Greed,
4. Unwilling,
5. Addiction,
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1. What is fear? Most of the fear is about unknown things, just like our life, because we don’t know where we will go after we die. We are afraid of death, just like when we were children, we were afraid of ghosts, because we didn’t know whether they existed, and we could only imagine the fear through movie clips.
So if one day science tells you that after death, you will definitely be reincarnated, you will definitely enter reincarnation, then will you still be afraid of death? When you know that there is a new chapter after death, then you will not be afraid of death, #BTC
It's like a captain. When he's sailing, will he be afraid of the route? No, he won't. He has already accumulated so much experience and many days of sailing experience. He has dealt with so many emergencies, so he won't be afraid when he's traveling. It's like an expert doctor. Will he be afraid during surgery? No, he has many years of surgical experience, many years of professional experience, and many experiences in dealing with emergencies. Will he still be afraid during surgery? I don't think he will be afraid.
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So I think the way to deal with fear in the field of trading is to break your ignorance, do a lot of learning, a lot of practice, go through a complete bull-bear cycle, and face countless emergencies. Then you will no longer be afraid of trading.
Many people don’t even know how many prices a K-line has, or what the fullness of a K-line body represents. If you don’t know the subsequent high-probability trend, you will develop a fear of the market and a fear of trading.
And when you know what the smallest structure of the market is, where the biggest short-term resistance of the market is, where the biggest short-term support of the market is, you know when the technical side is effective and when the technical side is invalid, you know when to interpret the news and when not to interpret the news, you know the target measurement after you open a position, you know where to take profit and where to stop loss, then will you still be afraid in this transaction? Absolutely not!
Therefore, the fundamental way to solve the fear of trading is to learn a lot, break ignorance, review a lot, and accumulate experience.
2. Anger
I think anger comes from surprise, and many people will experience anger when trading.
It is like you were originally bearish, but most of the bloggers you follow and the content you read are telling you that the market will definitely soar in the near future and the current situation is a beautiful upward trend. Your teacher and your group friends all tell you that if you don’t buy BTC at 30,000 now, you will have no chance in the future, so you change your opinion and follow the opinions of others. The market suddenly falls, and this is your surprise.
Here I give an example, just like you want to buy a car, you like Jaguar, but your friend will tell you that BMW has better power, Mercedes-Benz E has the best comfort, and Volvo has the best cost performance. In the end, you spend your own money and buy a car that others like. 😂 This is also an unexpected decision. #ETH
So I think anger, it's a sudden decision. What you need to do is trade your plan, plan your trade.
Any market noise can only be used as a reference for you, and the final decision should be based on the transactions you identify.
3. Greed,
I think greed is the easiest to solve.
The essence of greed is unrealistic. You don't stop profit where you should stop profit, and you are reluctant to buy when you should buy. #Binance
The most important thing is that you watch the operations of some masters and "teachers" every day. They keep posting their orders and keep suggesting that you look at how much time and capital they use to make 500% or 5000%. The "masters" are telling you that futures trading is actually very simple. You don't need 3,000 or 4,000 yuan, or 1,000 or 2,000 yuan. You only need 688U to take you to take off. 😅When the teacher says "I'm making a lot of money", your whole fomo mood will also rise.
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Think about it, in fact, many fund managers cannot outperform the market. If you can achieve an annualized return of 50%, you have actually been able to outperform many fund managers.
The way to solve greed is to set feasible goals. You must only trade with money you can afford to lose, and stay away from the "great gods". The more you watch the great gods who double your money, the more you want to double your money. Under temptation, you pay more membership fees to join various groups that lead orders. You are eager for the "great gods" to give you a few orders to make back your investment. You cannot learn from the group, or you cannot learn anything, and you cannot make money.
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Some inferior "teachers" will also tell you, no way, I've already left. Didn't you leave? No way, didn't you stop loss, I've already shorted. No way, why didn't you buy, I said you can buy at this position. 😄
There are also "great masters" who claim to be "teachers" who have been in the industry for 13, 15, or 17 years. They still need to charge membership fees of three to five hundred dollars. Do you think this "teacher" is a successful teacher? It does not mean that high prices are good. In short, I hope everyone can learn more by themselves and read more books (Japanese candlestick charts, volume price trading, Wyckoff trading). These are some essential books for novices. Read a book three times, and you can beat most of the "teachers" in the market.
ps: The financial threshold is very low, but also very high. If you are smart, you can share other people's second-hand information, collect group fees, and become a "teacher".
You taste it, you taste it carefully. It is easy to cater to the leeks, but it is very pleasant to communicate with people who share the same frequency.
I am a price action trader, so I only follow the price action to make the price. As for taking orders, whether the support can be held before the price touches it is a very worthy question to consider.
As long as you set your goal too high, you will be greedy. Make a 1:1 profit-loss ratio. That is, if you make 100U in this transaction, you will also lose 100U. When you reach the target position, make sure you make your own delivery and defense strategy. Enjoy the pleasure of actively stopping profit. Stay away from "great gods".
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4. Unwilling
In this round of market, there is a huge surge. If you don’t go long, you will want to go short.
Or if you should have shorted, but you didn't do it right, it would be easy for you to go long.
Whatever happens, you must first surrender and accept it. No matter whether God gives me good or bad things, I will accept it calmly and be grateful. I should first accept it and then think about how to make changes.
If you cannot accept and surrender, you will definitely have a vengeful and unwilling mentality, so this point cannot be of much help from a technical perspective. You can only keep reminding yourself psychologically that you need to surrender to the market, you need to surrender to God, and you need to respect this market.
Because I have enough ability, I have studied for so long, and practiced a lot. If I don’t make money today, I will make money tomorrow. If I don’t make money tomorrow, I will make money next week. If I don’t make money next week, I will make money next month. I have this ability, and I can definitely make money.
I don't envy others who make a lot of wealth in a market that I don't understand, because it doesn't belong to me. Why should I gamble in such a difficult market, when I might even lose my own money?
So many familiar friends will call me Gou Chi, because I am very Gou Chi, and I am very cautious in trading. Sometimes I even feel that there are no trading opportunities during the day. Although I will keep an eye on the market, if there are no promising trading opportunities, I would rather miss them. to participate. This will slowly suppress your revengeful nature.
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5. Addiction:
The cryptocurrency world is like a casino, there is no winner in the long run.
Short-term trading, intraday trading, this is very addictive, the dopamine in the brain will continue to stimulate you, open an order, then another order, two orders in a row, the next order must be no problem, double, double the investment. All in,
When you find yourself itching to open positions, stay away from your computer or the stock-watching software, go out for a walk, or call your friends to play games. I said reading is something that many people cannot calm down to read. Successful people often have higher execution and perseverance than ordinary people. Ordinary people only do things with their mouths. They may change their mouths, but their actions will never change.
ps: I don’t have much funds in the exchange. I cherish the opportunities brought by the bear market, which allows me to buy more chips at a lower price. I personally prepared a hardware wallet, and this hardware wallet is placed in my hometown. It takes me an hour to go back from the city. When I was "sick" that day and lost my funds in the exchange, when I was going to sell my spot, I also had enough time to calm down.
So I think the way to solve addiction is to reduce operations, watch more, do less, and don't hold positions all the time. Don't sell when you should. Don't walk when you should. The floating profit becomes a floating loss. The floating profit is definitely not yours, but the floating loss is really yours.
Don’t stop loss and then immediately start a second trade without reviewing the trade. Achieve physical and mental isolation.
You have experienced the above emotions to some extent. Why do I describe them so thoroughly? Because I have experienced every emotion and I have tried hard to fight against every emotion. So I will share my experience with you. Of course, I have basically overcome all the emotions.
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You cannot control your emotions. For example, when many people are obviously very angry, they always say, "How can I be angry?" It's like the saying that you can never wake up a person who pretends to be asleep. So the first thing you need to do is to admit it. Be aware that your emotions are accumulating, just like a volcano erupting. When a certain amount of energy is accumulated, it will always erupt. Find the reason and observe your emotions. All psychologists will tell you that the first way to relieve emotions is to take a deep breath.
1. Read books. There are many trading books that are worth reading, such as the ones I mentioned above.
2. Record, write a diary, review, and write a summary. After writing, your emotions will be vented.
3. Physical isolation, shut down immediately, and isolate the scene.
4. Find someone to talk to. Being a full-time trader is not easy. I think you need to find a better trader than you to talk to and calm your emotions.
I often say: "If I win, I am lucky, if I lose, I am doomed." Today I made my trading plan, and today I made money, but this is just my luck. I am lucky, not because of my ability. If I stop loss today, it is just my fate, don't care.
What do I care about? I care about every transaction I make. Have I found the key position of the currency pair? Have I set my stop loss and take profit? Perfect take profit and perfect stop loss are the characteristics of a perfect trader. I believe that everyone will reach this point one day through continuous training and continuous learning.
PS: If you want to change yourself, you must be kind-hearted and don't promote getting rich overnight. It's easy to promote contracts, promote dozens of times a year, and promote that every dog brings a fortune to someone. Many people have lost their fortunes because of this kind of fomo sentiment.
The following is the interpretation of an energyist friend of mine: I have no way to change your life, and I have no obligation to change your life. I cannot change everyone's fate. People say that good people have short lives. Sometimes I do a good thing, but why do good people not get good rewards later? Because you enter other people's magnetic fields, I change other people's karma, you change other people's karma, on the contrary, this world is constant and conserved. If you change people's karma, you must have certain gains. If you compensate each other, you will be equal. If you change other people's karma, you will not get compensation, which is a bad thing. This is also the advice of an energyist friend around me. He is also a very successful person in the current financial field.
Many people also ask, why do you do these things? I have always said that sharing comes from the loneliness of trading. After I think the absolute bottom layout, I will also fade away. Goodbye bull market. There is no need for rewards. I came to Binance Square. So far, I have not collected any tuition fees from anyone. At least I think I will not make any profit in the early stage. I will just do this thing. But I know the real reward. After I have done these things, there will naturally be a certain reward. I also thank every partner for accompanying me. Make more high-quality content to give back to every partner who accompanies me.
The following is the result of my team on the second day of this contract championship, with a real profit of 238428U. It ranks third in the entire network, and there are many short-term experts in the team. Brother Xu is the only one who carries the banner, which is a blessing for me. He has his own quantitative program and his trading system, which are also essential skills for every trader. I think a group of people with the same frequency playing together can better complement each other. Of course, such results are inseparable from every partner in the team. Thanks again to every partner in the team. 😘#合约锦标赛
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