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Co-Wise: How do you improve your trading mindset over time?
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NANA123 joined discussion · Jan 6, 2022 04:10

How to manage the trading mentality to achieve stable profitability?

From ignorance, accumulation, breakthrough, building-system, cognition, belief, I believe that successful trading = trading psychology * trading system. We can consider fund management and trading rules as trading systems, and the top form of trading psychology is as firm as belief. Therefore, success is nothing more than an operating system with faith.

Whether for newbies or experts, losing money is inevitable.The key is to lose correctly rather than wrongly. And when a loss-making transaction occurs, it must be a high-profile catch-up or a bargain-hunting on the mountainside. Otherwise, you will make a profit. Before entering the market, we should determine our trading types, technical or fundamental? Reverse thinking traders are accustomed to buying or selling in advance, while positive thinking traders like trading after a turn of trends. $Tesla (TSLA.US)$
How to manage the trading mentality to achieve stable profitability?
When trading on the left, if the price down to the bottom, the only thing is to stop the loss and leave the market; when trading on the right, if the price does not occur increasingly, or even become a loss position, you can only stop-loss. $Alibaba (BABA.US)$ $Apple (AAPL.US)$ $NVIDIA (NVDA.US)$ $Ford Motor (F.US)$

Based on these circumstances, we must know the correct buying point in our trading theory. If the buying point is valid and you believe it is a low-risk entry point, it is the "right loss" when a loss occurs. Conversely, if the buying point is wrong, it is a high-risk entry point; even if you take profit, it's terrible winning, and you will lose money in the long run for the profit-loss ratio.

Building your trading mindset is essential if you want to deal with every transaction calmly. Before you take profit, consider how much loss you can withstand. In technical analysis, there is a price and volume called "climax market." When a stock rises sharply, everyone notices its increase. Because of human greed, some players will enter the game to get a share of the pie. Therefore, these stocks usually have the following characteristics:
1. Strong unilateral upward trend
2. Explosive volume in the middle stages of the uptrend
3. The decline afterward was also very violent

For example: $GameStop (GME.US)$ $AMC Entertainment (AMC.US)$
How to manage the trading mentality to achieve stable profitability?
How to manage the trading mentality to achieve stable profitability?
Thus, you will be trapped; then, you must have an emotional outburst, manifesting irrational trading. So, learn more, train more, and grow up from mistakes again and again! We are our biggest enemy.
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NANA123
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