Withstand losses to mature

After a long period of investment, with the increasing maturity of understanding and technology, any veteran of the foreign exchange market will almost 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 I have traveled, seeing those "past me" who are still struggling in the foreign exchange market in reality, I have an unstoppable urge to speak, and what I most want to confess to these young colleagues is the feeling of facing losses. Even a veteran of the foreign exchange market will still lose money in trading, which isforeign 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 trading, 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 was just like military fire reconnaissance or medical clinical drug diagnosis. Profit and loss was the explorer of the direction of the system's transactions, and it also reflected the basic law of "misfortune depends on good fortune". However, such practices of the veteran may not work for the novice, because the operation of the novice is often unstable and unsystematic, so the profit and loss cannot accurately reflect the true situation of the transaction 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, they usually first look for the inevitable cause of the loss from their own trading philosophy and trading technology. Once found, they 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 to forgive themselves when trading losses, so that they will always stay in the alternation of narcissism and self-anesthesia, which is difficult to make progress.

Veterans will definitely agree with the concept that necessary losses are the price of risky trading investments, and their psychological preparation for each foreign exchange trading investment is "how much to be prepared 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 preparation and technical preparation for losses when trading and investing, and their psychological characteristics are expressed as a strong expectation of "how much to be prepared to win". 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 an enterprising foreign exchange investor. For the lazy and decadent, it is a blow that leads to depression again and again. Losses make the foreign exchange market a monastery for the enterprising, and losses make the foreign exchange market a hysterical motivator for the decadent. The same loss has different meanings and feelings for different people. In fact, due to the law of the "zero-sum game" of the foreign exchange market, more people leave the market sadly under the blow of losses, and ultimately achieve nothing. Only a few people ultimately win by virtue of their own efforts.

When you have gone through the test of loss, mastered the transformation of psychological impulses and rational thinking in foreign exchange investment transactions, and finally won the battle between human nature and animal nature, you will become an outstanding foreign exchange investment expert 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.