The more wager you are to make money, the less you make, why?

Question: What makes you want to be a trader? You say that you want financial freedom without relying on others; you want to be your own boss and make money; you want a source of income other than salary.

The reasons are ok, such as you want a “passive income” other than salary, you hate your job, and you want to make money. However, is it really possible to achieve those goals by transactions? Well, there are several cruel truths about trading that I have to tell you. Read this article. These thoughts are normal, but they may curb your possibility of making a profit, if acting as the original intention of trading.

How to be the most adaptable trader in the market?

• First and foremost: protect your money.

Speaking of survival, how can you survive in the trading market without funds? In nature, the Australian saltwater crocodile is one of the most evolved predators that adapt to nature. The African Lion is also a good example. These two mighty predators are worth learning for us as traders.

They can lurk quietly for several days before hunting, knowing to save energy when preys that are weak and small, and they will not kill every time they encounter food, because that will only consume their energy, keeping them hungry. Over time, they found that the best way to get a good meal is to wait patiently. They save energy, and when they meet the ideal prey, they get up and win quickly. To save energy, they will not prey until they meet the ideal quarry. Once they prey, they succeed quickly.

As a trader, your funds will definitely be exposed to unnecessary risks, if you enter the market every time there is a small opportunity. Otherwise, if you run out of funds, there will be nothing you can do when the good opportunities appear.

• Choose transactions wisely.
• Just as predators in nature know how to choose prey, you as a trader must choose transactions wisely. Maintain patience and stick to your own principles, otherwise continuous unsuccessful trading will make you impulsive. A lion will not choose the strongest prey, instead, it will choose a target that is easy to hunt, knowing that its physical strength is limited. Always attacking the strongest prey will lead to nothing but starvation.

In trading, deficit is a certain result, if you keeps over-trading instead of following the plan and waiting for chances with potential profit. ust like Warren Buffett said: “There is no such thing as a good shot area for trading, so you don't have to swing every time.”

• Understand that time helps a lot.

It takes tens of thousands of years for species to evolve with their organs becoming more adapted to the surroundings. As time goes by, you can absorb knowledge and become a better trader, which of course, can not be expected to happen all at once. The existence of earth has been 4.5 billion years, but it wasn't until 7 million years ago that the human brain formed, which took 2 million years to evolve to current state. To become better and better, everything cannot do without the magic of time.

The earlier you accept there is no such thing as rich overnight, the sooner you will step on the real path of profitable trading. Just like a loaded train, it accelerates slow at first, but will not stop once speeds up. Traders, please bear in mind, haste makes waste. Over time, you will learn more about the market and trading and be able to take advantage of real opportunities.

• Develop and use your trading institution.

Traders will gradually develop their intuition in long-term trading, which can only happen naturally. Many trading masters rely on intuitive trading. On seeing the chart, they can almost detect the next market immediately. Then all they have to do is to wait for the trading setup triggered by the market. Novice traders always think it is simple to form such intuition, while the truth is it is impossible to reach this level without years of continuous analysis and investment.

• Evolvement/ Adaption

To become one of the most adaptable traders, you have to psychologically accept this long-term process of evolution and adaptation. First, you must learn how to trade correctly. Learn to analyze charts and read price trends. Then keep trial and error, learn from past mistakes, and constantly correct your behavior. Then, truly understand that you need to adapt to the changing market. If you only understand trend trading, you will sure lose money when the trend turns into a consolidation market. Learning to trade is a broad concept, including interpret price trends and knowing how to flexibly change according to different market conditions, which are all required courses for you.

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