Why do most of your “trading opportunities” end in losses?


The so-called worthless transaction refers to the transaction with disproportionate risk and profit. This kind of transaction usually appears in the trader’s blind and frequent trading state.Trading results are often more than profit loss, and then affect the mentality of traders, even into a vicious circle of losses.The specific performance is that traders want to seize the so-called “opportunity” in the face of fluctuating prices, regardless of the profits and risks of trading.At the same time, such traders tend to take chances, thinking they can make even a few points, and ignore the big risks behind the small profits.Or, in the face of any market, they think it is a trading opportunity that can not be missed. Driven by profits, they magnalize the tiny opportunity subjectively. Regardless of whether the market is in line with their trading habits, they trade at will and impulsively.No matter which kind, it is contempt and disrespect to the market, then the market will not naturally give traders good fruit to eat.While winning and losing may be the norm for professional traders, trading systems are more disciplined.They tend to plan their trades in advance, set stops and so on, so that even losses do not hurt the viscera.In contrast, the losses caused by worthless exchanges are different. Such traders do not have a deep understanding of the market, and their trading decisions are determined randomly and without consideration. Moreover, the avoidable losses brought by these traders do more harm than good to the growth of traders.So how do you tell if a deal is worth it?A trade is worthless to you if the trader doesn’t even set a stop loss.Most of the time, the market is in a sideways swing or small fluctuations, so there are not always valuable trading opportunities.Disordered market and human weakness, doomed at this time blind admission of traders will mostly end in failure.In the face of account loss, the trader’s psychological state will certainly have an impact, so after the valuable, suitable for their trading opportunities, they can not grasp the trading opportunity in an optimal state.A trader who has developed the habit of trading frequently, even if he enters accurately, will miss the opportunity to make a profit by leaving quickly.A dud trade may not be a big win or a big loss, but it will slowly erode your capital, making it impossible to take a position in a trend and really make a profit.To avoid this, the first thing traders need to do is to look at the nature of the market, use the market’s own behavior and supply and demand to filter the appearance of information, identify trends, and patiently wait for the right opportunity to arrive.The consequence of blind and impulsive trading is to fall into the trap set by the main force of the market and become the victim of the market.With an in-depth understanding of the market, traders also analyze information from various sources to determine whether trading opportunities are valuable.As far as trading itself is concerned, risks are inevitable, but profits are uncertain.This requires traders to have a sense of risk management. If you pay extra attention to the risk of trading, to some extent, you can avoid some worthless trading.Of course, reducing the number of worthless trades doesn’t mean that you will seize every valuable opportunity, but if you make every trading decision without analysis or careful consideration, then the majority of the opportunities you will seize will be worthless trades.A common problem for frequent traders is that they focus too much on profit and take every opportunity to make a profit.It is this excessive pursuit of profits that will bring endless burden and pressure to trading.In the case of limited amount of capital, traders each transaction is the loss of capital, profit is increased, vice versa.If you keep spending more than you earn, one day your capital will run out, and you won’t even have the capital to survive in the market.Cherish the real value of trading opportunities, seriously treat each hard-won trading opportunities, give up obsession, rational treatment of profits, in order to a stable state of mind to capture worthy market!

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