What signs indicate that it is not far from making money from trading?
This topic is very meaningful, reminding me of many past trading experiences.
There are no signposts on the road of trading; everyone is feeling their way through the river, and no one can definitely define what is wrong and what is right.
Many people have taken the wrong path in trading and have experienced losses. I too have had a very painful experience of losses, at which time I wished for a savior to tell me what is right, what I should do, and how I can get out of the current predicament and move towards success.
But after going through so much, I realized that no one can give you a standard answer because everyone's experiences and backgrounds are different, which also means that the answers everyone gets are open-ended.
Today, I will talk about my own trading state after reaching profitability, as a reference for you.
1: I am very clear about when to wait and when to act.
When I first started trading, I was like a headless fly, making as many trades as I had time in a day. If I had nothing to do at home for a day, I would sit in front of the computer from morning till night (since forex trading is 24 hours, I could trade from dawn to midnight). The number of trades had nothing to do with the size of the market, nor with whether the market was volatile or trending; I just wanted to keep trading, to make money, and not to let myself be idle.
Such operations led me to continuous losses.
After experiencing a significant loss phase, I calmed down and built a trading system, and when I started trading again, my state was completely different.
What was once a messy ball of yarn in front of me is now clearly separated. I have a very clear classification of market trends. In my eyes, there are only two types of market conditions: one that meets the standards of my trading system and represents opportunities I can take, and the other that does not meet the standards of my trading system, and such market conditions are irrelevant to me.When encountering irrelevant market trends, I patiently wait. When opportunities arise that align with my trading system, I act decisively, regardless of whether the outcome is profit or loss. As long as the market segment belongs to me, I will unhesitatingly seize it.
The process of "eating" the market is not blind but follows clear rules: where to enter, where to set a stop loss, where to take profit, and how much position size to use. I have a precise understanding of these aspects, leaving no room for ambiguity.
2: After placing an order, I do not feel anxious; I treat trading like a long-married couple's relationship.
During the phase when I was experiencing trading losses, every day of trading felt like sitting on a hot stove. Once an order was placed, I would stare intently at the candlestick charts, feeling elated when I made a profit and anxious when I incurred a loss.
Due to my limited skills, although I could correctly predict market trends, I often failed to hold onto profits, stubbornly clinging to losing trades. Most of the time, I was in a state of loss, which led to constant anxiety. Would the market eventually come back? Should I run at a slight pullback? The market fell again, and the loss increased; I might as well have just left. I lived each day in this state of anxiety and worry.
My usual state of mind also deteriorated, with my emotions fluctuating wildly, and I lost interest in other aspects of life.
However, after I established a trading system, my daily task became executing that system, which reduced my anxiety.
Firstly: I control my position size well, so the amount of money lost in a single trade is not significant, giving me a solid foundation.
Secondly: I have a complete set of trading rules, with strict stop-loss levels. After opening a position, I set a stop-loss order, and I no longer fear being stuck in a trade.
Furthermore: I have confidence in the overall profitability of my trading system, so even temporary losses do not scare me.Moreover, the trading patterns are unified, the trading standards are consistent, and the patterns of market trends have undergone countless changes, and I have encountered innumerable black swan events. Therefore, I no longer experience any novelty in trading, nor do I feel very excited, just like an old married couple who have been together for decades, all that's left is to live a good life, very stable and reassuring.
3: I no longer ask others whether I am doing the right thing.
In the early days of trading losses, I was very lacking in confidence. I desperately wanted others to give me some definitive answers, such as "You are right to go long, and you will definitely make money if you hold for a certain period."
At that time, even if I had judged the direction correctly, I dared not enter the market, always wanting to get someone else's confirmation. Once I received the approval of many people, I would hold with much more certainty.
When an order is profitable, I should have confidence, but as soon as the market corrects, I become entangled, always wanting to ask in the discussion group whether this order should be kept or not?
When an order is at a loss, I ask others where I should set a stop loss?
In any case, for all the problems in trading, I hope to find a definite answer to pre-validate my own judgment.
But in fact, everyone has different trading logic and methods, different trading cycles, and everyone's answers are different. One person says it will fall, another says it will rise, and in their trading logic, both are not wrong, but getting different answers can be very confusing.
Later, when I had my own trading strategy, I had my own backbone, because I had tested it thousands or even tens of thousands of times, and run through countless market scenarios. I had a clear understanding of the profitability of my trading system, and at this point, I no longer needed to seek answers from others, and their answers would only confuse my mind, and there was no need to even engage with them.
I know that I just need to follow my own trading rules to achieve profitability, and the opinions of others are not important. If I encounter doubts in trading, I can also verify through backtesting or simulation trading, without needing to seek help from others.So, a friend asked me before, why does one find themselves without friends and increasingly lonely while trading? It's because trading is a very individualized activity that requires self-reflection, self-review, and self-execution. Too many voices can disrupt thinking, which is not a good thing. Trading doesn't really need a sense of recognition or belonging. Being in a group can easily lead to the vortex of herd mentality, which is why it's better to be alone.
In fact, this is also a lesson in life: how to transcend one's desires, jealousy, and fantasies, and not let oneself easily fall into the vortex of group effects, is worth our deep contemplation.
These three points are roughly my current trading state. I believe some friends who have already achieved profitability will resonate with me, and I also provide some reference for friends who have not yet reached profitability.