Most investors, after a period of financial trading, find that the results are not as satisfactory as they imagined, and there are various reasons for this phenomenon. In trading, the most terrifying thing is not that there is a problem with your technology, but that you fall into these trading traps without realizing it.

1. Emotional Trading

Trading psychology and your control over emotions will determine your trading career. Trading is not exclusive to smart people; only those who can control emotions and pressure can achieve success. Fear, anger, arrogance, greed, and other emotions are always accompanying our trading journey.

To learn to control emotions, you must adhere to your trading plan, trade in moderation, and develop a set of trading strategies. Don't forget the basis for each of your trading decisions. A good trading plan should include entry and exit points, risk management, etc.

2. Ignoring Risk Management

Risk management is always mentioned again and again. The financial market is a game of capital, and a moment of carelessness can lead to capital loss. Therefore, managing risk is something everyone must do. In a trading market with a balance of long and short positions, where you can buy and sell at any time, by establishing a corresponding risk management system, trading risks are completely controllable.

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The trading market is uncertain, and risk control is the essence of trading. Controlling risks does not mean not using leverage in trading; appropriate leverage is actually beneficial for the effective use of capital. As ordinary traders, we cannot change the market; we can only adapt to it, but we can change our own behavior.

3. Overconfidence in TradingA real data survey shows that 80% of individual traders disappear within 4 years, and overconfidence is definitely one of the reasons. Some traders start by strictly following the trading plan and enjoy a period of profit, then begin to blindly overconfident. This is actually very dangerous because they are prone to become addicted to trading, and their behavior is no longer rigorous. Overconfidence is undoubtedly a sugar-coated shell.

04. Overlapping Too Many Indicators

Indicators undoubtedly give traders a sense of security, but the more they overlap, the better they are not. There are many indicators on the market, each with its focus, and simply putting them on the chart is useless. Even the best tools need skilled people to bring out their value. The market is very complex, and even the indicators suitable for different market conditions are different. You need to filter the indicators suitable for yourself, study how they work and what they represent.

05. Betting on News Data Market

News data market trading makes some people feel exciting, and important press conferences can cause significant market fluctuations. However, at the same time, don't forget that the trading risk at this time is also extremely high. The market is too emotionally influenced at the moment of data release, speculative, and the fluctuation range is too large, unpredictable, not conducive to risk control management, and sharp fluctuations will also bring more spreads and slippage.

06. Following "Trading Masters"

Many people always want to rely on others to make money for them, and if there is a fresh method in the trading market, they will not easily tell you. Relying on following teachers to do orders and obtaining so-called insider information is very difficult to survive in the trading market. If you want to survive in the trading market for a long time, the only thing you need to do is to continuously improve your trading cognition and improve yourself through continuous practical summary.

07. Over-reliance on Information

In the information age, the spread of data is far faster than others. Even in daily life, we can feel the mental tension caused by the overwhelming information, let alone doing this work that requires super focus. Moreover, many news data are also outdated when they are announced, and forcing them to be associated with the trading market will reduce our analysis efficiency. Narrow your focus and only pay attention to the data related to your own trading. Trading doesn't require you to know everything.08, Contrarian Bottom Fishing and Top Fleeing

The old saying that "the trend is your friend" is absolutely sensible. Trend-following trading is suitable for most traders. After mastering some skills, traders tend to want to seize the opportunity for market reversals, which is actually very difficult to achieve. Even for experienced traders, this method is very risky. Anyone who has traded knows that the market is nothing more than the rise and fall of commodity prices. Understanding the market is to understand and grasp the trajectory of price movements. Generally speaking, there are two states of price movement: the trend state and the consolidation state. Successful investors are those who follow the direction of price movement with less resistance, based on their speculative experience and operating system, to make calm analysis, and always be soberly aware of the laws of market development, as still as a virgin, as agile as a hare, and as a wolf catching the opportunity!