You have been trading for several years, and your skills are relatively strong, with a fairly complete personal trading system. But why have you suddenly experienced significant losses recently and sought help from others? In fact, most people are in a similar situation, with their positions becoming heavier. The previous win-loss ratio can no longer satisfy your inner greed. The initial increase in position weight does lead to greater profits, but later it turns into extreme despair. Why is this? When a single loss exceeds your inner tolerance, you think about quickly recovering your losses. The more frequently you trade, the worse it gets, completely disregarding your trading system, and the seeds of gambling have already begun to sprout. In two or three days, the positions exceed 60% or more.
How does this situation arise? We are not newcomers; let's analyze it from a psychological depth.
Anyone who has been trading for a long time should have had such an experience: once encountering a large loss, due to the psychological pain caused by the inability to bear the loss, one mindlessly makes the next trade in an attempt to quickly recover the previous loss, resulting in more mistakes and even greater losses, forcing one to stop loss. Sometimes this can happen several times in a row, and by the time one calms down to reflect, it’s already too late to regret. I have experienced this, and not just once; there have been three or four times, each time leaving a deep impression. This issue can be said to be a deadly problem that haunts traders. The emergence of this psychological problem mainly has two reasons: on one hand, there is a psychological unwillingness to bear the pain of financial loss and a desire to quickly recover losses. On the other hand, one's self-esteem and confidence have been hit during losing trades, wanting to prove oneself immediately through a new trade to regain self-esteem and confidence. However, with such a mindset, traders often become more aggressive in searching for trading targets, forcibly identifying non-tradable trends as tradable. To quickly recover losses, the selected targets are generally those that are rapidly rising or falling, while also overlooking various details to trade against the trend. Once in this negative psychological state, a trader's win rate significantly decreases, leading to erroneous trades and substantial losses occurring again in a short time. Continuous erroneous trades will further exacerbate this negative mindset, which in turn promotes more wrong trading, creating a vicious cycle that can lead to substantial losses in just a few days, or even hours.
To solve the psychological issues that arise after the first loss, you need to focus on the following aspects.
First, you must view trading as a regular business, akin to a middleman buying and selling. In business, there are losses and profits; trading will also involve gains and losses. This is normal; do not get emotionally attached to the results of each trade. It is just an ordinary transaction. As long as you summarize the total results for the month at the end, that is enough.
Second, you must control the loss limit for each trade and the daily loss limit. If either reaches the specified limit, you must exit immediately, stop trading, take a good rest for a day, and wait until you are adjusted before making further trades.
Third, do not deliberately look at the amount in your account. Focus your attention on trading; enter and exit as necessary, and check your account equity after the market closes.
Losses, big losses, and even liquidation are experiences that every mature trader encounters on the path to success. Correctly handling the psychological issues after losses is a compulsory course for every successful trader. I hope they do not hesitate or stagnate because of this loss, but rather adjust their mindset, overcome adversity, and successfully move forward. The sky is blue, and the scenery is beautiful.
I am a trader who enjoys super short-term trading and long-term positions in spot markets. I prefer to use take profit and stop loss; not being greedy is profit.
Recently, Bitcoin has reached a trend that is about to consolidate, and I am in the process of positioning. If you want to follow along, please like and comment 55.
#2025比特币价格预测 #BTC挖矿难度创新高 #本周微策略是否继续增持BTC？ $PNUT $ATA $BNB
