Trading Psychology

Dear friends, as an experienced trader who has taken many detours, I observe human nature daily through the fluctuations of the candlestick charts. We should always be aware of our own greed and fear.

Someone asked me if I’ve read any books about candlestick analysis besides Gann. Honestly, not really. But I’ve studied various aspects of psychology, so when analyzing the market or writing recovery strategies, I often consider psychological factors.

This article is written for everyone who is practicing in this market.

The dangers of excitement after making a profit: Excitement can lead to overconfidence, which blurs your risk awareness.

You might start to think that it’s not the market giving you opportunities, but your ability to conquer the market. This illusion can cause you to easily overturn your rational trading plan, making irrational moves like increasing your position size, removing stop-loss or take-profit orders, convincing yourself that earning this much is okay to lose a little. Then, during a retracement, you begin to blame yourself for not taking profits earlier, blaming others who influenced you at the time, and emotional reactions start to surface.

Look at those who have truly survived ten or twenty years in this market. You won’t see joy or despair on their faces. They are as calm as a still pond. Whether they are winning or losing, their expressions remain unchanged.

So, I hope everyone, after making money next time, feels that surge of excitement rising to the top of your head. Immediately alert yourself. Close your account, step away from the screen, go drink some water, take a walk, do anything that can bring your heartbeat back to normal. Wait until you are completely calm before returning to the battlefield.

Every upward path is full of traps. Your goal is to stay alive, calmly execute your trading plan, and watch it unfold with composure. That’s really cool!