Poetry, Tea, and Gold: The Common Problems of Loss in Foreign Exchange Gold Investment Summary: Execution is the Hard Truth!

I often have friends add me to ask, Teacher Shiming, can spot investment really make money? I'll give him an example and ask him, can you ensure that you never have a traffic accident while driving for years? He smiled and said, "No, there is no 100% guarantee for anything. Just like driving, as long as you don't drive under the influence of alcohol and follow traffic rules, the accident rate will be greatly reduced. The same goes for investment. As long as you develop good habits, will you still worry about whether you can make money?"?

It is said that many highly successful traders have experienced bankruptcy. Of course, foreign books, in the hands of each different translator, may also translate a certain stock explosion as "bankruptcy". However, in any case, this indicates a fact - no matter how successful a trader is, they may still encounter failure again after a successful trading period. For example, a market master like Soros may also experience a loss in a particular transaction or a failure in a certain period of time.


Therefore, what I want to explore here is not the problem of how to move from failure to success, nor the problem of analyzing how to avoid or get rid of losses, but the problem of how to avoid repeating the same mistakes after embarking on the path of trading profits. For me, turning gains into losses is truly the most heartbreaking experience in trading!


Twisting profits into losses can be a certain transaction or a period of time. At the beginning, the progress was smooth, but at the end of the closing position or the end of the period, it was found that the profit was only very small, and even there was a loss. This is a disheartening and helpless thing, perhaps even the biggest taboo for spot trading winners!


I don't know how others are doing, but in my deep reflection on my own trading failure, there are two fatal reasons for my failure:


Firstly, in terms of trading psychology, blindly optimistic;


Secondly, blindly confident in the trading system.


A trader who can maintain successful trading for a long period of time generally indicates a certain level of understanding and cognition of the market; Developed a complete set of trading concepts, strategies, rules, methods, and techniques that suit oneself; Has considerable execution, control, and self adjustment and tolerance in terms of mentality and emotions. These are essential factors for successful transactions.


However, after a period of successful trading, people often easily let emotions take the upper hand! Reasonably, then retreat to the second line! So, in terms of mentality, there were some subtle changes. I thought I had understood the language of the market, understood the laws of the market, and discovered the true essence of the market. I can now defeat the market! My trading system can solve the market90%The above questions can explain the market90%The above phenomena can counter the market90%The trend of; Follow Shiming Pinjin to stay up-to-date with market information and grasp major trends to help you make steady profits!

　　In terms of specific trading behaviors, there are mainly the following:


　　1、 Expanded the scope of risk control


I think this is the most common and deadly problem. When trading goes smoothly, it seems easy to expand positions at will, which correspondingly expands the risk tolerance range. Originally only doing1Hand, do it now3Hand; The original stop loss was5Point, now it becomes10Point. It can be imagined that after expanding positions and risks, an unfavorable market movement may quickly devour the original profits!


　　2、 Relaxed the restrictions on entry conditions


While expanding the proportion of capital investment, it also increases the frequency of entry. Frequent entry and exit, attempting to enter and exit in different varieties and trading modes, as if one has the ability to capture every opportunity in the market, actually leads to a dispersion of trading attention. Under normal circumstances, one should learn to make choices and seek the maximum trading opportunity, but at this point, one completely forgets the general.


In fact, we can see that these two factors come together, which is a problem of excessive trading. This was originally a common mistake for beginners in trading, but when their mindset changes, these mistakes will reappear.


　　3、 Relaxed the execution of trading rules


Trading rules are the only lifebuoy for traders in the ocean of the market. However, in a situation of blind optimism and blind confidence, one actively violates their own rules. Try to buy at the first low point and sell short at the first high point; Attempt to find direction in a volatile market; Attempting to subjectively find reasons for each of my trading actions goes against the rules that once brought me profits and protected me.


　　4、 Abandoned vigilance against market uncertainty


Uncertainty, which is a characteristic of the market, can occur at any time and in any variety. However, in smooth times, it is often easy to overlook the importance of uncertainty. Since I am capable, then the movement of the market seems to need to be as clear as a roadmap. When the market is moving in a disadvantageous direction, it often seeks excuses for itself, resulting in the correct judgment coming too late and being unnecessarily delayed.

The market is an endless book to read; Trading is a long marathon of one's life. We can never defeat the market, nor can we fully interpret the market. The success of a transaction does not necessarily mean anything. We have no reason to be self righteous or arrogant; On the contrary, a failed transaction cannot defeat us, and we don't need to underestimate ourselves. However, in order to live longer and go further in the market, we need to be constantly vigilant against our various inner demons. Only in this way can we hope to push ourselves into the ranks of true winners.


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