How terrifying is the "poverty mindset" approach to stock trading? - Top Digital Cryptocurrency Trading Platform

1，

The most typical poverty mindset in the stock market

The most typical poverty mindset in the stock market includes the following types,

If you also have such thoughts,

Make adjustments in time:

The first,

Many investors prefer to invest in low-priced,

small-cap stocks,

They think such stocks are easier to rise,

and can buy a lot of chips,

which is very cost-effective.

But low price has its reasons,

perhaps because the company’s performance is poor,

growth potential is weak, etc.

And high-priced stocks are high-priced,

also supported by intrinsic value.

If you only invest in low-priced stocks,

it’s easy to step on landmines.

The second,

Many investors like to be fully invested,

never have a day without a position,

and never split their holdings.

Liking full positions mainly because retail investors have too little capital,

if they also need to set aside some to trade stocks,

they can’t make much money,

so,

these people either don’t trade,

or trade with full positions.

Moreover, retail investors always like to enter at the top of a bull market,

when stock prices are rising daily,

only then do retail investors realize to enter,

but it’s already at a high level.

The third,

Trading stocks just to earn daily living expenses is enough.

Many investors often set earning a little daily living expenses from the stock market as a small goal.

In the eyes of many retail investors,

earning a few hundred yuan a day is very happy.

But such frequent trading,

in the short term,

you might profit,

but over time,

the more you do, the greater the loss.

Investors who only want to earn a bit for daily expenses,

during a big bull market,

will also pick up some sesame seeds,

but lose the big watermelon of the bull market.

Therefore,

retail investors should have a broader perspective.

The fourth,

Make quick profits and run,

lose a little and run immediately.

When the market starts to turn good, exit,

you might miss subsequent opportunities,

but blindly chasing high and losing money,

then exit without hesitation.

With more such trades,

your principal will be almost gone.

The fifth,

Only think about earning big money in the stock market,

but never consider what to do after losing money.

Many investors enter the stock market with the idea of getting rich overnight,

but,

85% of the time in the stock market is the worst,

only 15% of the time is good,

so investors should not ignore risks.

In the stock market,

how much money you have doesn’t matter,

whether you understand technical indicators or not doesn’t matter.

But if you have the above “poverty mindset” to trade stocks,

you will definitely not beat the market,

and will not become the final winner.

2，

A truly successful trader,

is not about how smart,

handsome,

but about having a stable profitable trading system,

and being able to persevere in execution.

Trading system,

sounds complicated,

but at its core,

based on what to place orders,

based on what to close positions,

based on what to enter the market,

based on what to avoid risks,

these four points are the main…

What you need to do is to integrate them,

to achieve greater benefits,

and lower risks,

this is a complete and reasonable profit system.

Everyone understands the principle,

but everyone is reluctant to follow it,

because these principles often challenge human nature itself,

those who cannot overcome their own shortcomings,

will never succeed in the market.

A trading system,

to some extent,

is fixed,

because we need to maintain trading consistency.

Because we want to ensure that profits on paper are greater than losses on paper,

so that the remaining is pocket profit,

and what we don’t know is whether the next signal is truly accurate.

So remember the first unchanging rule: ensure the consistency of your system signals

However, many people get stuck on this consistency,

which leads to the next problem: flaws.

Whether you admit it or not,

your initial system inevitably has significant flaws that could threaten your account safety,

why do I say this?

Because a trading method that only maintains consistency,

cannot ensure risk avoidance,

perhaps your profits for a period are quite substantial,

but in the long run?

Faced with flaws,

if you don’t have a better method,

then use risk management,

to set stop-loss.

This is currently the only effective way I’ve found to avoid the flaws of the “initial system.”

Greed will lead to death,

satisfaction is the same.

The market is a collection of human nature,

rising and falling within greed and satisfaction.

Two seemingly contradictory traits,

actually exist in each of us,

Greed includes fear,

excitement,

Satisfaction includes smallness,

and comfort.

But no matter what,

the disharmony of these two,

causes us to be unable to truly stick to our pre-entry thoughts,

to clearly see some situations when sober.

Personal character varies,

but if you want stable profits,

and want to stick to the system,

what we need to do is pay attention to the balance between greed and satisfaction.

Excessive excitement on either side,

will cause you indescribable troubles.

$DOOD **$SOON **$RDAC **