Why are opportunities in the market easy to see but not profitable?

Trading is an activity full of risks and uncertainties, so it also hides many opportunities. But have you ever felt this feeling: when observing the market, you always feel that there are opportunities to make money everywhere, but after you get started, you can’t make money. But when you don’t trade and just predict the market direction as a bystander, you often make the predictions correct. This kind of seeing is not far from being able to “seem”, but the actual distance is out of reach.

The market has always been objective and it has been providing opportunities constantly. But in this case, have you ever thought that this is actually the influence of trading psychology?

The psychological impact is more profound than you think

Trading is inherently risky, but we are often afraid of risks and passively take risks. Just imagine, who hasn’t traded at an inappropriate opportunity?

Either enter the market early before the market sends a signal; or enter the market slowly long after the market sends a signal; close the position to make money too early; turn the profitable position into a loss position; put the stop loss point near the buying point; after the stop loss, the market rebounds upward again…….

<img style="max-width:100%!important;height:auto!important;" decoding="async" class="img-thumbnail" src="https://www.kb010.com/static/20250207/gxnkxgdg5xo.jpg" alt="Why are the market opportunities easy to see, but cannot make profits? " title="Why are the market opportunities easy to see, but cannot make profits? "//

There are countless examples like this, but these errors are not made by the market, but our “fear” causes these errors. “Wrong, lost money, missed, miscalculated” are four basic trading fears. Once you make mistakes in a row, you will often hesitate to miss the opportunity you should have to operate because of fear. After success in continuous profits, you will recklessly fail to follow the strategy or take too large positions, resulting in a drawdown after continuous profits.

Many times, we cannot continue to make consistent profits, and will classify the reason as if there is no suitable technology, thus ignoring the impact of our psychology on our trading.

Faced with losses can only get rid of fear

There are only two results for trading: either profit or loss, and loss is the source of fear for all traders. But losses are inevitable. It does not mean that you will lose if you do something wrong. You will also lose if you operate the right way. This requires measuring the risk in advance and calculating the strategy’s past profit-loss ratio. When there is a high probability of winning, continuous trading will be continued, and all opportunities will be seized, and ultimately, the profit will be greater than the loss, so as to maintain long-term and stable consistent profits.

We also need to learn to accept the worst possible results of transactions, not only in terms of money, but also in terms of emotions. In this way, when the market weakens, at least personal emotions and attitudes will not change. We can still make an objective summary and invest in the next operation. This is mainly to change the dual pain of money and spirit brought by high expectations. And other than that, We can also use these methods to reshape our trading mental state!

Reshape the trading psychology

Build your own trading system

The importance of a trading system that suits you does not need to be said for traders, but there are still many traders who fail to recognize how much impact it has on traders’ mentality. For traders, the root of psychological pressure comes from poor basic skills and lack of a system.

Therefore, to solve this “heart disease”, the most urgent task is to establish a stable profit system with positive expected values.

Faced and managed negative emotions

For negative thoughts that arise during the trading process, traders need to face control rather than avoid it. Acknowledge that negative emotions such as anxiety are normal reactions, and confirm the continuous negative thoughts in your mind through meditation, and throw them into the trash like throwing garbage. Spending a few minutes of meditation every day is a very effective and powerful strategy that helps traders observe their hearts and stick to changes.

Record and analyze psychological changes

Traders can obtain the root cause of state changes by recording and monitoring their psychological state details. Whenever you feel anxious, fear or irritable, you should carefully record it and ask yourself questions, asking yourself what are the reasons for these psychology? What is really scared or irritated? What are you worried about? What countermeasures are there? Then take the right medicine and solve the problem one by one.

Develop a plan to deal with the worst situation

In trading, traders may face various unpredictable market trends. At this time, traders can preset countermeasures in different situations in advance, especially think more about countermeasures in the opposite situation. For example, when you encounter major losses or even catastrophic trading events, how will you deal with it? What is your maximum psychological tolerance for these events?

When traders are ready to face the worst situation, they can better control their negative emotions.

In fact, in life, we are often influenced by our mentality. This is a very normal thing. There is no need to regret or get angry. As long as we believe in our decisions, our trading system, no longer be afraid of losses, and wait patiently for the opportunity, trading will not be easily affected by emotions, and operations will be more decisive and maintain long-term and stable profits.