Long-term trading requires calm and objectivity

If a short-term trader is an artist, then a long-term trader is an engineer. Artists are full of excitement and passion for artistic creation, while engineers are full of hardships and challenges in engineering, because engineering requires long-term efforts, and unexpected situations will occur in the middle. Long-term trading pays more attention to rationality than passion. Long-term trading is theoretically more suitable for the majority of investors, because he pays attention to rationality, but it is precisely because he is too rational and objective that he will lose the excitement of daily trading and form a lonely and more endurance trading behavior, which is a bit like an ascetic. This kind of hardship makes many people re-join the ranks of short-term trading. Long-term trading follows trends, believing that trends are his only true friend and the source of his profits. He doesn't pay attention to intraday fluctuations in prices, believing that intraday fluctuations in prices have little to do with him. This will also make people feel that you are insensitive, even like a fool. He doesn't pay attention to how the market will go the next day, but only whether the trend ends.

The endurance of long-term traders is beyond the comprehension of the average investor, nor can it be tolerated by the average investor.

There is a misunderstanding in the market that the reason why long-term traders can hold positions for a long time is because they can predict the trend and end point of the market, so they can hold them for a long time with confidence! This is a big misunderstanding! Long-term traders don't know the future trend of the market like you, he just follows the trend with discipline. Long-term positions with discipline have to endure pain that ordinary people don't understand. It can be said that long-term profits are exchanged for long-term market torture! Large fluctuations in the market can easily eat up most of the profits from the original position. The most unbearable thing is that this kind of discount is often what you think will happen, that is to say, you watch profits go back. This is like someone taking your money when you are prepared. Do you understand this pain? Can you accept it? Long-term traders have to give up many profit opportunities that they believe are certain in exchange for long-term profits.

In addition, there are fewer opportunities for long-term trading, and the market is volatile for most of the year. Long-term traders have been losing money in the middle of the shock, and they often turn into losses when they take profits from their positions. This torment is enough to hit anyone! At the same time, the market sometimes reverses sharply and signals the end of the trend. You are also forced to close your position and leave the market without losing a large part of your profits, and then the market moves in the original direction. At this time, you must have superhuman courage and perseverance to enter the market again. These situations are easier said than done than you think. Indeed, the most important thing about long-term trading is to remain objective and disciplined. In many cases, you have to give up your own fresh thoughts and judgments. However, closing a successful long-term position can provide very enviable returns, which is why long-term trading is desirable. Long-term trading has one of the biggest characteristics: small losses win big. He does not pay attention to the proportion of profits and losses, but pays attention to the quality of profits and losses. This is the most essential difference between him and short-term trading!