Guide Reading:

Trading is a tough game. If a trader wants to be truly successful, he must take a serious look at what he is doing. He banned the drafting rate and could not enter the market under some potential psychological emotional stimuli.

Unfortunately, the market often attracts people who are not suitable for this: impulsive traders, gamblers, or critics who believe that the world owes him a lot. If you are trading for stimuli, you may accept some transactions that are less successful, or take unnecessary risks. The market will never be soft, and not care about your temper. The emotional transaction has only one consequence---loss.


Gambling is a bet based on skill or analysis opportunities, hoping to win the lottery. This behavior is common in society. Most people have been gambling in their whole lives. Freud believes that gambling has a universal temptation because it is a substitute for masturbation. There are many connections between gambling and masturbation: repetitive stimulating behaviors in the hands, irresistible desires, determination of abstinence, addictive pleasures and feelings of sin. Dr. Ralph Greenson, an outstanding psychoanalyst in California, classifies gamblers into three categories: normal people gamble for pleasure and they can stop at any time; professional gamblers who choose gamble for a living; morbid gamblers who are gambling based on the needs of the subconscious, have no ability to restrain or stop.

A sick gambler either feels that he is "fortunate" or wants to test his luck. Winning can bring the feeling of power. A sick gambler is destined to be a loser, because he only wants to rebuild the omnipotent pleasure and not focus on the long-term game plan in real world. Dr. Buren, chief executive of the South Oak Hospital abstinent gambling center in New York, claimed that gambling is “addiction with no drug”. Most gamblers are men, they gamble for pursuit, and women usually evade by gambling. Losers often disguise their losses and try to behave like winners, but in the end, they cannot escape the torture of self-doubt.

Trading in stocks, futures or options markets allows gamblers to enjoy the climax they need and seems normal. In addition, gambling in financial markets seems to be more knowledgeable, with a layer of carefully calculated color, compared to shouting in casinos. When the trade is easy, the gambler will get dizzy with it; when the loss occurs, it will be dejected. They are totally different from successful professional traders, the latter focusing on long-term plans and being not excited by short-term gains, or frustrated by losses. The broker knows very well that many clients are gamblers. They try to avoid leaving message to the customer's wife as much as possible, even if it is for the return of the transaction. Gamblers are not entirely from amateurs, and many professional traders have this problem. Sonny Kleinfield mentioned in his work The Traders that floor traders generally tend to gamble, especially for sports games. The main symptom of pathological gambling is that you can't resist the desire to the game. If you feel that your trade is too frequent and the results are poor, it is best to stop trading for a month and give yourself the opportunity to reassess the trading. If the desire for trading is so strong, there is really no way to stay outside the market for a month. The “abstinent gambling center” is probably the place where you should go.


Years of experience have convinced me that most of the failures in life are caused by self-destruction. In the profession, the failure between career and interpersonal relationship is not because of stupidity, but to achieve the desire for failure in the subconscious.

I have a brilliant friend who has been destroying himself in his whole life. When he was a young man, he was a very successful salesman, but he was fired; he was trained to be a broker, almost climbed up to the top position of the company, but was charged for some reason; then he became a famous trader, but he still couldn't get out of the previous disaster and failed. He blamed all the jealous directors, the incompetent law enforcement officers and the less considerate wives. In the end, he was very down and out of work and money. But then he got an opportunity to make a comeback and began to climb to the peak of success. At this time, he spoke to Asia and continued to trade on the way. At the stage of the speech, he went to a country known for being pornographic, but left a large uncovered position without a stop loss. When he returned to the civilized world, the market had a major trend, and the funds managed were swept away. Does he try to understand his own problem? Does he try to change it? No - he blamed his broker!

It is an extremely painful procedure to reflect on the inner causes of your failure. When traders get into trouble, they are used to blaming others, luck or anything else.

A very good trader came to my clinic and his account was hit by a wave of rising of dollar. His childhood was spent in the shadow of his father's brutality. Everyone in the trading circle knows that he is very good at placing huge bets on the reverse of a given trend. This time, he continued to add short positions because he could not admit that the market -- representing his father -- was stronger than him.

These are just two examples, but they can show how people's behavior stems from the psychology of self-destruction. We act like impulsive children rather than wise adults - destroying and striking ourselves, and we are caught in a self-destructive mode; but it can be avoided - failure is a treatable disease.

Competition of great destruction

Almost all industries offer some kind of safety net to their members, and supervisors, colleagues, or customers will remind you when you present a dangerous behavior of self-destruction. The transaction does not provide this, so its danger is much higher than other human behaviors, and the market offers many opportunities for self-destruction and there is no safety net.

Every member of the society will put some of their efforts to guard against the consequences of mistakes. When driving, you avoid hitting other vehicles, and other vehicles will avoid hitting you. If a car suddenly opens the door, you will get out of the way. On the highway, if someone suddenly cuts into your lane, you might wanna "fuck", but still slow down the car. You avoid car accidents, because the price paid by both parties is too high. In the market, people lack normal mutual support psychology. Every trader wants to crash and destroy each other, and each trader will be injured by others. On the freeway of the transaction, there are sorrows and despair, and there are broken vehicles left over from the accident. Trading is the most dangerous human behavior, second only to war. Buying at the high point is like opening the door suddenly in the traffic, the traders rushing to sell to you----crashing your door, including your hand. Inside. Trading opponents want you to fail because they want to take possession of your losses.

To be continued.

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