Conventional thinking about winning and losing in trading

Usually, the feeling of winning or losing in trading is most evident in the short term. The human brain is programmed to intensify short-term sensations to the greatest extent, so the human sense of victory is best expressed in one or a few immediate trading

Notice the times when you met a series of losing orders, what did you feel? Anxiety, fear, anger, insecurity, suspicion. That feeling of suspicion arose that made you believe that the system was using problems, even doubts yourself. After a few more losing orders, the brothers began to believe that they could not do it and started to blame the dealer, on the market, on the "shark". The feeling of frustration could not stand it.

How does it feel when you win? Confidence, the pride, feeling of being able to weigh the world, believing that you are able to predict the market. And get ready to enter the next order, even raising the volume.

People will be frightened when they face a losing order, and overconfident when meeting a winning order. That is a feeling that no one can avoid. But the truth is, winning and losing in trading is not evaluated like that.

What is winning and losing in real trading?

People use a long time, usually a few years, to judge whether a trader is able to make a profit or not. A profitable year is also considered not enough.

So the trader is able to make a profit during those few years, does he win all the orders? Of course not. He will encounter losing orders, a series of losing orders, even a series of losing orders. He will have losing trade days, losing weeks, even losing months.

Importantly, he's still profitable through the years of trading overall.

Why is he able to continue trading when he encounters a series of losers and losers?

Because he has the 2 most important beliefs about a trader:
  • Every moment in the market is unique. The losing order he just went through was not due to system problems, but only random markets;
  • Each trading has independent and unrelated results.
Knowing that every moment in the market is unique, the same method of entering an order will sometimes win and sometimes lose. He just has to win more when he wins.

Knowing that each trade has independent results, he knows that the next one has nothing to do with the previous. He just kept on trading.