The first is to establish a trading strategy with positive expectations
Without this premise, no matter how good your attitude is, no matter how much money you have, no matter how small your position is, sooner or later you will lose it.
Is the position small enough? For such a game of negative expectations, the longer you play, the more you lose. 200 million votes, 10 million losses. Yes, the ending may have been known before it began.
Second, a good attitude and proper stance
A good attitude can ensure that you reduce the risk of subjective emotions and ensure that you can execute well. Ignore the profit and loss, and only focus on whether you have made the correct behavior in the transaction, and use the correctness of the behavior to judge the quality of the transaction, not the specific profit and loss. This keeps you in a good mood, because all you’re after is doing the right thing at the right time, and you know that if you keep doing it, the result will give you a reasonable return. Your creed is that the process is a reward
Having immersed myself in the foreign exchange market over the years, I increasingly feel the importance of a good attitude. Many veterans are skilled people, but the development of attitudes is not commonplace, and it is difficult to achieve good results in the end.
And positions are important because everyone’s capital is limited. Like the extreme example mentioned at the beginning, every time you throw it to the other side, you lose 10,000. In this case, if the first 100 times, 30 times are positive and 70 times are negative, then 370,000 times will be lost, and many people’s savings will be lost. No, while the rules of the game are good for you, you can’t play anymore.
For beginners, the most important problem to solve in Forex trading is to establish an initial simple trading strategy. If an initial trading strategy with positive expectations has not been formed, do not trade first, backtest and continue to adjust using more historical data. How to develop a trading strategy? You can communicate with peers, learn from professional traders, and participate in some trading technical forums, which will save you from detours.