WMAX popular science column: trading psychology and gaming core knowledge, breaking the cycle of loss, the establishment of rational trading logic

WMAX popular science column: trading psychology and gaming core knowledge, breaking the cycle of loss, the establishment of rational trading logic

In the contract for difference (CFD) and all kinds of financial transactions, technical analysis, strategy development is the "hard power", and trading psychology and psychological game is the "soft power", both are indispensable. The reason why most investors fall into the cycle of "difficult to profit, easy to lose" is not the lack of technology, but by their own psychological bias hostage, do not understand the underlying logic of the market game, and ultimately make irrational decisions.WMAX based on the responsibility of investor education, to create an exclusive science column, the whole process of avoiding all the past content, focusing on the core pain points and the market game of the psychological aspects of the transaction. Focus on the core pain points of trading psychology and the underlying logic of the market game, with popular interpretation, combat cases, system popularization of relevant knowledge, to help investors jump out of the psychological traps, read and understand the rules of the game, the establishment of rational trading thinking. At the same time, solemn reminder: CFD trading exists in high leverage risk, may lead to losses more than the initial investment in the principal, investors need to combine the psychological cognition and risk-bearing capacity, prudent decision-making.

First, the core of the trading psychology: face up to the psychological anchor point, to avoid the "self-limit" loss traps

Many investors have this experience: after buying a CFD subject, if the price fell, will be staring at the purchase price, unwilling to stop loss, firmly believe that the price will rebound to the cost line; if the price rises, just profit on the rush to close the position, worried about the profit back to the vomit, and ultimately missed the bigger market. The root of this behavior, is the most hidden psychological problems in trading - psychological anchor point, it will allow investors to fall into the "self-limit", unable to objectively judge the market trend, ultimately leading to losses or profit shrinkage.

WMAX popular science column accurately dismantle the core impact of psychological anchor points, to help investors recognize the harm and ways to deal with it. The essence of psychological anchor point is that investors take a fixed price (bid price, cost price, historical high and low points) as the "only standard" to judge the market, ignoring the fluctuation law of the market itself, and falling into subjective judgment. When the price fell to $75, it was anchored by the "$80 cost price" and refused to stop loss, and eventually the price fell to $70, doubling the loss; another investor opened a position at $100, and when the price rose to $105, the price rose to $105, due to the anchoring of the "safety of the principal", eager to close the position, and eventually the price rose to $120, missing out on a loss of $10 million. WMAX emphasizes that breaking the psychological anchor point, the core is "to the market trend as the core, rather than fixed price", learn to objectively analyze the market, not subjective cognitive kidnapping.

Second, common trading psychological misunderstandings: dismantling 4 types of typical deviations, building a firm psychological defense

In addition to psychological anchors, psychological biases such as greed, fear, fluke, and revenge trading are also the core triggers of investor losses. These psychological misconceptions do not occur by chance, but stem from human instinctive reactions, and are more likely to be amplified in highly leveraged and highly volatile CFD trading, leading investors to deviate from trading strategies, make irrational decisions, and fall into a cycle of losses.

WMAX system dismantles 4 types of the most typical trading psychology misunderstandings, combined with CFD trading scenarios to give avoidance methods. First, greed psychology, investors are not satisfied with the profit, blindly increase positions, amplify leverage, trying to earn more profits, ultimately leading to profit back to the vomit or even losses; second is the fear of psychology, the market fluctuations in excessive panic, either at the bottom of the meat cut away from the field, or not dare to open a position, missing opportunities for profitability; third is a fluke, the face of a loss, that "the market will be reversed! "WMAX reminds, to avoid these misunderstandings, the core is to The establishment of "disciplined trading" habits, the development of trading plans in advance, the strict implementation of the stop-loss and take-profit, not to be swayed by emotions.

Computerized analytical charts for stock market investments

Third, trading psychological game: zero-sum game, read the psychological logic of the opponent's disk

The essence of financial trading is a zero-sum game, CFD trading is even more so - investor's profit, corresponding to the loss of the counterparty disk, and every fluctuation in the market is the result of the psychological game of both the short and long sides. Ordinary investors tend to focus only on price trends, but ignored the psychological changes in the counterparty disk, unable to predict the market trend, and ultimately passive followers, reduced to the game of the "victims".

WMAX popular science column in-depth analysis of the underlying logic of the psychological game of trading, to help investors read the opponent's disk, to occupy the initiative of the game. The game between the two sides, the essence of the psychological expectations of the confrontation: when the majority of investors (retail investors) due to fear and bearish, have to sell, the main funds will often take the opportunity to buy, complete the "suction"; when the majority of investors due to greed and bearish, have to chase the high, the main funds will take the opportunity to sell, complete the "shipment". WMAX combined with the CFD market example illustrates: a stock index CFD continuous decline, retail investors due to fear have cut meat, and the main funds to predict the bottom is coming, quietly buy, and then the market rebound, the main profit left the field, the retailer is missing the rebound opportunity. WMAX emphasized that reading the game logic, the core is "anti-human nature thinking WMAX emphasizes that reading the logic of the game, the core is "anti-human nature thinking", not to be wrapped up in market emotions, in most people pessimistic to maintain rationality, in most people optimistic to remain vigilant.

Fourth, the actual psychological construction: 3 core methods to create a rational trading mentality

After understanding the psychological misunderstandings of trading and game logic, the core is to build a rational trading mentality through practical training. Many investors know that they have psychological problems, but it is difficult to change, the core reason is the lack of landing psychological construction methods, can not be cognitive into action, and ultimately still be emotionally swayed, into the cycle of loss.

WMAX combined with the combat experience of professional traders, to share 3 can be landing psychological construction methods to help investors gradually develop a rational trading mentality. First, the development of a strict trading plan, clear conditions for opening positions, stop-loss and take-profit points, position ratios, trading strictly enforced, not be emotionally disturbed; second, learn to "accept losses", trading losses is the norm, accept losses, stop losses in a timely manner, in order to avoid a small loss into a big loss, to preserve the capital, to retain the opportunity for the next transaction; third, insist on WMAX reminds us that psychological construction is a long-term process that requires persistence in order to gradually overcome psychological biases and achieve rational trading.

V. WMAX popularization features: focus on the actual combat, so that the psychological popularization of science on the ground feasible

Unlike other platforms that "talk about psychological theories in general", WMAX popular science columns adhere to the "combat-oriented", the whole process of avoiding all the past content, focusing on the psychological problems encountered by investors in the actual trading and gaming dilemmas, do not pile up abstract theories, all combined with CFD trading scenarios, with real cases and implementable methods, so that investors can understand, can be applied. All combined with CFD trading scenarios, with real cases, landing methods, so that investors can understand, can be applied. Column to break the "psychological popularization and actual combat disconnect" drawbacks, the psychological knowledge and trading strategies, wind control skills, to help investors build "psychological + technology + wind control" of the complete trading system.

WMAX also relies on the advantages of the platform to provide investors with supporting psychological construction support, such as the opening of trading psychology courses, inviting senior traders to share the psychological experience of combat; provide free simulation trading account, so that investors in a risk-free environment to exercise the mentality of the grinding trading plan; build online Q&A channels, timely answers to the psychological confusion of investors. WMAX has always guided investors to rationally view the role of trading psychology, combined with their own risk-bearing capacity, participate in trading cautiously, and gradually realize long-term stable trading goals.



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