The legendary woman who was reborn from the ashes
Chapter 61: Transformation from Emotional Trading to Profitable Trading
In the past dozen years, Jiang Juan has devoted herself to the stock market. In the process of communicating with various types of traders and investors, Jiang Juan found a surprising common point: everyone is like a blind man touching an elephant, focusing on the trading techniques and strategies, but ignoring the heart hidden behind the transaction.
Yes, that beating heart, that emotion, that mentality, they are the key to determining the success or failure of a transaction.
If technical or fundamental analysis is really all about trading, then wouldn’t all the CMTs and CFAs in the world be the invincible overlords of the market? But this is not the case. Those great investors and traders may not be well known to people, and they may not have a glamorous academic background, but they have conquered the market with a strong heart and written their own legends.
Trading is actually a battle between yourself and yourself, not between yourself and the market. What you have to overcome is not the fluctuations of the market, but your own greed, fear and anxiety.
Jiang Juan recalled her early trading days, when she was like a wild horse without a bridle, led by her emotions. Greed made Jiang Juan chase highs again and again, and fear made her sell at a loss again and again. Overtrading and frequently changing stocks seemed like she was looking for the legendary holy grail, but the result was often that small losses turned into big holes.
Admitting mistakes was simply a fantasy for Jiang Juan at that time. But as time went by, Jiang Juan gradually realized that accepting losses and facing her mistakes was the first step to success.
Jiang Juan began to learn risk management, began to control her emotions, and began to train her mentality.
Of course, this is easier said than done. The market is sometimes like a naughty child, always giving you a warning when you are least prepared.
In a bear market, you may suffer losses continuously, start to doubt your ability, and feel like a loser; in a bull market, you may feel proud and think you are a genius. But no matter how the market changes, you must keep a calm mind, believe in your trading system, and strictly abide by your discipline.
Now, Jiang Juan's trading style tends to be medium- and long-term investment. She likes to find companies with potential and grow with them. Although everyone's trading style and philosophy are different, Jiang Juan believes that no matter what your trading style is, as long as you can control your emotions and keep a peaceful mind, you can find your own place in this market.
In-depth exploration of the global financial market, Jiang Juan's vision has already gone beyond foreign exchange and touched commodities. As a swing trader, Jiang Juan chooses to wait for the opportunity and hold positions overnight or even for several days.
Unlike the fast pace of day trading, swing trading is like fishing in still water, which requires patience and perseverance. However, the risk is also increased because the market may fluctuate dramatically overnight, resulting in gaps, which greatly increases the possibility of profit and loss.
For new traders, it is crucial to understand their own personality and risk tolerance.
If you are an anxious person and your trading style is to hold positions overnight, then an unexpected market gap may make you shudder and your blood pressure soar. Such stress is not only bad for your health, but it may also affect your trading decisions.
Swing trading usually requires you to set a larger stop loss than day trading. This means that when the market moves against you, you must remain calm and handle losses rationally. Otherwise, emotional decisions may cost you dearly.
As for losses, Jiang Juan can frankly tell everyone that every trader has experienced it. In the early days, Jiang Juan also suffered a lot of setbacks and lost a lot of money. But the key is how to face these setbacks, how to learn lessons from them, and how to maintain a positive attitude.
For Jiang Juan, protecting capital is always the top priority. Only by maintaining sufficient capital can we continue to fight in the market. Jiang Juan treats each transaction or position with a half-position mentality. No matter how the market fluctuates, I always believe that through strict discipline, effective risk management and control of my own behavior, I can go further in this market.
When Jiang Juan discovers her weaknesses in trading, she becomes excited because it means she has a chance to improve and become stronger.
Jiang Juan will deeply analyze these weaknesses, find out the root causes of the problems, and then formulate targeted strategies to overcome them.
In Jiang Juan's view, successful trading is not just about making profits, but more importantly, it is about constantly growing and surpassing oneself in the process.
Therefore, Jiang Juan will always adhere to the following basic principles: first, be responsible for her own transactions and positions, do not shirk responsibility, and do not blame others; second, work hard to improve her trading skills and knowledge level in order to better grasp market opportunities; finally, maintain a positive mentality and optimistic attitude, and be able to respond calmly no matter how the market changes.
Nothing can stop your determination to learn, just as nothing can stop the sunrise from illuminating the earth.
In the trading arena, failure and setbacks are like unexpected wind and rain, but we can choose to open the umbrella in our hearts, accept them and learn from them.
When you are on the wrong side, reflection is not a punishment but a healing.
Have you ever felt that you were missing something in the trading arena? Was it a careful trading plan, or a calm mind? Or was it a losing trade that you were holding, making it difficult for you to decide whether to let go?
No matter where the problem is, the most important thing is to acknowledge its existence. Don't be afraid to stop and review those past trading moments and carefully analyze the gains and losses. When you find the crux of the problem, you will also find the way forward.
Jiang Juan's trading path always follows the basic trend of prices. She firmly believes that simplicity is power. Just as the A-share market once climbed from 1664 points to 3400 points, it is like an elegant arc, telling the rhythm of the market.
In such a trend, traders can decisively buy at any breakthrough point, while investors who have already positioned themselves at low positions can increase their bets in new breakthroughs and win more victories.
For those who have just entered the world of trading, Jiang Juan just wants to say that the market is like a vast ocean, and you are the helmsman. Before investing your capital, please make sure you have mastered the tools of navigation.
Fundamental and technical knowledge is your compass and map, they will help you find the direction of price. Don't rush to take risks, take the time to familiarize yourself with this ocean first.
If you are still young, you might as well try to intern with experienced investment predecessors, learn from their experience, and draw wisdom from the fluctuations of the market. Keep silent and observe carefully until you can make your own decisions confidently. Remember, the road to trading is a road without an end, and steady steps and clear vision will be the key to your success.
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