Value your trading opportunity.

Try best to reduce the amount of worthless trading and value familiar opportunities.

Meaningless trading is the primary reason that causes losses and bad mentality, and also it’s the important reason that forms the bad trading habit. Pointless trading has the characteristics of arbitrariness and temporary impulsiveness, going with the tide and frequent trading under any condition. There’s an essential difference between meaningless and professional trading, so the losses it will bring are far more significant than professional trading. Losses also happen frequently in professional trading, but it has guidelines which will generally control the loss range. Professional trading is to try best to reduce or avoid the arbitrariness in trading.

What’s meaningless trading?

In short, meaningless trading is worthless trading, where risk and profits are disproportionate. It catches every opportunity and doesn’t let go of any of them, trading will be made when the price is fluctuating. It doesn’t evaluate how many profits and the corresponding risks it will bring to the trader, and the trader always holds the fluke mind. He thinks it’s enough to earn just a few points, and he only sees the profits but ignores the potential risks.

Or they think any time is the excellent opportunity if they don’t trade they will miss the boat. They don’t care if the current fluctuation is fit into their own trading habit, but always magnifying the tiny opportunity driven by the profit trap. Meaningless trading is meanwhile, the trading that failed to make an in-depth analysis of the market and it’s somewhat arbitrary and impulsive.

What’s the trading value?

The market is not always in the state of worth trading.

In summary, it’s the trading that lives up to the stop range they set up. If the trading can’t live up to its own stop range, then it’s worthless. Most time market is under the state of consolidation and vibration or slight fluctuation, namely, there is no good trading opportunity in the market in most cases. Meaningless trading happens under this kind of situation.

When under this kind of situation, any trading at most is making profit offset the loss, let alone human weakness makes the trading in most cases doomed to leave with losses. When the market is not worth trading, many people have somewhat losses in their accounts because of meaningless trading, which break their trading mentality. And when the real trading opportunity appears, they don’t dare to trade because of the shadow of trading losses a short while ago.

And also as he has already formed the habit of frequent trading, even he has grasped a perfect entering time, will lose the real profit opportunity because he leaves too soon. Meaningless trading will not only cause you to lose when it’s time for consolidation but also make you unable to hold positions in trends. The bad trading habit formed by meaningless trading makes him always fail to make real profits.

Meaningless trading looks like ongoing speculative trading, it seems that they are no different from other people, but in fact, it’s not true. Investors making meaningless trading don’t really understand the meaning of speculation. So what’s speculation? Speculation is an investment opportunity, no opportunity, no trading. It’s similar to hunting, no shooting if there’s no prey. Whether the speculation is successful or not depends on the result. It’s the profit result that makes traders gain happiness.

But meaningless trading is to shoot any object, no matter if it is prey. It’s more like a game. The happiness of the game is derived from the process and not entirely from the result. Meaningless trading is essentially not speculation. Still, using capital to play the game of futures, it’s a way of purely consuming money, which is opposite to the goal of making profits. Meaningless trading is also to indulge oneself, and it’s a behaviour extremely not responsible for trading. Pointless trading satisfy traders’ addiction of trading and relieve the bad feeling while not trading, the process or entering is happy, but the result is often wrong like you’ll end up paying the bills of games.

Why there are so many people doing so?

Does he not know the goal of trading? I think the root reason is that the strong desire to make profits makes him trade frequency under any situation. That is to say, the profit trap makes him proceed meaning trading. The biggest pitfall in the market is profit, and it’s the expected profit that makes people lose objective evaluation and rationality, which makes people ignore the existence of risks.

The key to the problem: We are often not able to evaluate the trading opportunity.

Indeed, it’s not possible to confirm the evaluation of trading opportunity or market size. Still, it is this uncertainty that proves the inevitability of risks, that is to say, the risk exists in every trading order, but the profit is not confirmed. So this should make investors more aware of the risks rather than benefits. Meaningless trading is exactly seeing more profits but ignoring the potential risks. Floating profits are like invisible hands facilitating many investors to trade blindly. As long as you are clearly aware of the uncertainty and inevitability of the risks, you can reduce the meaningless trading to a large extent, and this also forms the basis of meaningless trading reduction.

Reducing meaningless trading neither means you don’t trade at all nor assures you that you can definitely grasp valuable opportunities. Proper trading is an essential means to keep in touch with the market, and the key is you have to think carefully before trading. You have to completely understand where to set up the loss after entering and whether the market has good joining points. There are some quotations you can see, but you find it hard to grasp. We can only do those quotations that can be seen and grasped. These quotations are rare in a year, which has been validated for many years.

You have a senior community member, who was once profoundly at a loss and felt confused, even hopeless. All he left was little money only for several lots of orders. So he deemed the last trading opportunity as the most important trading, he was super careful and prudent. As he said: I repeatedly checked the charts and had a glance at the account, silently calculated when the bullet would fire. No, no, no, it’s not the time yet. I was extremely cautious, and I knew I should be more careful and more patient this time. And finally under this background of extreme calmness, he caught his chance and made 7 times more profits in 2- 3 months, eventually, he achieved a complete turnaround.

So I am thinking if we treat every trading as the last bullet in our account balance, and every opportunity as the previous turnaround opportunity in our trading life. Should we be more cautious, more serious about every trading, and thereby reducing meaningless trading to a great extent?

At last, I want to give you one word, Charlie Munger said, if you are allowed to have maximum 20 punches on a ticket, each time you punch, you lose one trading opportunity, you’ll use up your opportunity after 20 times. At that time, are you going to value every opportunity particularly?