Loss is a psychological test

After a long period of ups and downs, with the increasing maturity of understanding and technology, any veteran foreign exchange speculator will almost always get used to a natural rhythm of winning and losing less, and will no longer be excited about temporary profits and losses. However, often in the dead of night, looking back on the road, the "past me" who is still struggling in the foreign exchange market in reality produces an unstoppable urge to speak, and the one who most wants to confess to these young colleagues is the feeling of facing losses.

Even a veteran of the foreign exchange market can still lose money in tradingforeign exchange marketThe inevitable result of the randomness of price movements, the old hand cannot completely escape the natural law of random perturbation. Therefore, for losing trades, the difference between the old hand and the young colleague is only the difference between less and more, small and large, accidental and inevitable.

However, in the face of trading losses, veterans often have an instinct formed by long-term experience, that is, in long and short foreign exchange transactions, when a trade in one direction loses money, the veteran will usually immediately backhand and make a list in the opposite direction. This is because the principle of "those who follow the trend will prosper, and those who resist the trend will die" in the foreign exchange market. When a trade in one direction loses money, it often implies that the opposite direction is likely to be profitable. This is like military fire reconnaissance or medical clinical drug diagnosis. Profit and loss are the explorers of the direction of system trading, and also reflect the basic law of "disaster and blessing". However, such practices by veterans may not work for beginners, because beginners' operations are often unstable and unsystematic, so their profits and losses do not accurately reflect the true situation of the trading direction.

However, what is difficult for ordinary people to detect is the difference in the psychological characteristics of veterans and novices after losses, which is the essential difference between veterans and novices.

After a veteran makes a loss in a trade, he will usually first find out whether there is a necessary reason for the loss from his trading philosophy and trading technology. Once he finds it, he will immediately study the solution to avoid similar mistakes in the future. On the contrary, novices often regard trading profits as inevitable, and losses as accidental. They find various objective reasons when trading losses. Forgive themselves, so that they will always stay in the alternation of narcissism and self-anesthesia, and it is difficult to make progress.

Veterans will definitely agree with the concept that necessary losses are the price of risky trading investments. The psychological preparation for each foreign exchange trading investment is "how much to prepare to lose". Therefore, when the veteran opens a position on each trade, he must set a stop loss price at the same time, and when the price reaches the stop loss price, he resolutely stops the loss. Novices usually have little psychological and technical preparation for losses when trading and investing, and their psychological characteristics are expressed as a strong expectation of "how much to prepare to win" profit. When encountering floating losses, they often panic, which is manifested as a chaotic emotional operation that alternates between stubbornly holding positions and slashing positions, which eventually leads to greater losses.

Losses should be pages and pages of time and experience for enterprising futures people. For lazy and decadent people, it is a blow that leads to depression again and again. Losses make the futures market a monastery for the enterprising, and losses make the futures market a hysterical motivator for the decadent. The same loss, to different people, has different meanings and feelings. In fact, due to the law of the "zero-sum game" of the future market, more people leave the market sadly under the blow of losses, and ultimately achieve nothing. Only a few people ultimately win by their own efforts.

When you have gone through the test of losing money, mastered the transformation of psychological impulses and rational thinking in foreign exchange trading, and finally won the battle between human nature and animal nature, you will become an outstanding foreign exchange speculator with profound thinking, insight into life, peace and love. The sublimation of your foreign exchange trading skills can be learned from, and the sublimation of your humanity will benefit you for a lifetime.