Flipping the market on its head is not an easy task; after all, it's a psychological contest with the global investment community. Legendary traders do not get huge profits all at once, but persist and accumulate wealth continuously, eventually making everyone envious.
The first step for ordinary people to enter the market is to temper themselves and make themselves more suitable for survival in the trading field. Everyone in the market has to go through what transformation to become a survivor in the market, instead of being tragically eliminated?
1. Views of famous people
Top traders such as Jim Rogers and Paul Tudor Jones have expressed some views and summarized some characteristics of traders. Traders who have and deliberately cultivate themselves to have these characteristics are expected to survive better in the market.
1. Independent personality
Advertisement
That is, make independent decisions and have the courage to take full responsibility for the consequences of the decisions.
Jim Rogers said: "You are born with the ability to make the best decisions for your own best interests. In most cases, thinking for yourself is better than making the right decisions and taking the right actions by going against your own wishes and listening to others' decisions. The fact is, no one in the world has ever succeeded by just following the crowd."
2. Objective spirit
That is, the judgment and operation should be as close to the objective reality of the market as possible, and the more objective the trader is, the greater the achievement.
Please note that the original text had some HTML entities (like "·" and "“") which I've replaced with their respective meanings in English. Also, the translation is done to the best of my ability to convey the original message in a coherent and natural-sounding manner in English.William O'Neil believes: "Most investors are unable to observe the market from an objective perspective. They tend to pick stocks that they psychologically favor and hope that these stocks will make them profits, while ignoring the information revealed by the stock market trends."
3. Honesty and Truth-Seeking
A successful trader must be honest with others and themselves, and should possess the insight to see through illusions to the essence, the intuition not to be deceived by beautiful but useless theories, and the ability to directly get to the point and summarize the internal laws of objective things.
Paul Tudor Jones said: "I will first predict the direction of the market, and then probe in a low-risk manner. If it is not successful, I will change my view of the market."
4. Willingness to Admit Mistakes
People who are stubborn and have strong self-esteem find it difficult to survive in this market.
Martin Schwartz said: "I started to become a winner when I could separate self-esteem from whether I make money. That is to say, from the moment I could accept mistakes... As a trader, one must face mistakes directly, because numbers do not lie."
5. Good at Summarizing
Traders must have the ability to learn from both correct and incorrect experiences, as well as the ability to combine theory with practical combat.Richard Dennis once said: "My advice to new traders is: when engaging in every trade, you must be mentally prepared for the worst, so you should operate in small quantities. In addition, you should learn from your mistakes and not be overly concerned with the daily fluctuations of the market, but pay attention to the direction of trading decisions, and not be overly concerned with the success or failure of a single trade. I learned not to add to a position in order to recover losses."
6. Mental and physical balance
Understanding one's own value, strengths and weaknesses, and limits; having a thorough understanding of life and human nature. Do not overwork, do not take excessive risks, do not be troubled by stress and emotions such as anxiety, do not do things beyond one's capabilities, be content with one's fate, and be happy with what one has.
Mike Marcus mentioned: "But if you can maintain a balance in life, trading is a pleasure. Successful traders will eventually achieve a balance in life, and they will all seek pleasure outside of trading. If a trader only focuses on trading, they will eventually become over-trading or be disturbed by a temporary blow."
II. Exchange friends share
Exchange friend "Ma Ling"
After engaging in trading, I feel that I have changed a lot. Because of doing quantitative analysis, when encountering problems, I will habitually try to think from multiple dimensions, rely more on quantitative analysis results to draw conclusions, and be better at evaluating and correcting my past judgments through archiving and leaving traces.
In addition, market participants need to be highly disciplined. Because no matter what you do, the trading opponents are always there. Therefore, you may become more and more accustomed to going to bed on time, eating, meeting people, and doing fixed things.
Now, I worry less about gains and losses. I cannot make perfect predictions, so no matter how the income is today, it is more important to focus on the present and future matters.
"Big and small dogs" share:Before entering the market, it is best to fill in all the pitfalls in character and thinking. If for various reasons you are unwilling to fill these gaps, you will "spend money" in the market to make up for these gaps one by one. Only then can you be calm and everything will come naturally. Train your thinking style in advance, and at the first moment when encountering a situation, you will have a conditioned reflex and know how to deal with it. The result is determined by the brain, by the way of thinking and the path of thinking.
To this day, especially after experiencing the baptism of the market, I have increasingly realized the value of the previous years of thinking training process. If the way of thinking is correct, even if the market changes again, it can still keep up. Because this is just changing one or a few variables in your thinking system; or refreshing a part of the thinking skeleton and making some adjustments to the content. But without such thinking, you will always be led by the market.
In summary, traders who shine brightly or survive well in the market are all those who have insight into the market and themselves, know how to reflect, and understand the importance of deliberately training thinking and character. Although the principle is very simple, it may be difficult to become such a trader. However, successful people are all growing up continuously and standing out. To succeed, you must be brave to change and take good every step of your own.
Comment