Perhaps all of us have seen circus performances of balancing on a tightrope. And did you realize that Trader also has a strange similarity to this extreme performance art?

Keep balance

Maintaining balance is not only in tightrope walking and trading, but in all aspects of life. In life we always have a prerequisite: we need to keep balance. If we lean too much to one side, life will become unbalanced and the longer we leave it, the more harmful it will be.

In Trading, you always need a balance between many factors such as risk, profit, time, health, and family. This is a circle that we always need to control and recognize to adjust whenever there is an imbalance.

If you focus too much on profits - this is something new traders often encounter, it can cause you to burn your account because you ignore risk management, or put your body in a constant state of stress, causing harm to your health. , mentality.

If you are too afraid of losing money and do not accept risks, do not dare to trade with a real account or the profits from the market will be low, not worth the effort you put into trading.

Balancing will not be like a mathematical calculation that always applies the same way, so we cannot have an exact number. Each person will have to make adjustments that are suitable for themselves, suitable for each time. .

For myself, in the past, when I was young, I would have been willing to accept risks and spend more time to gain profits and a better knowledge base.

Now that everything has met my expectations, I can relax and have more leisure, mainly investing in large frames, and spending the rest of my time on myself and my loved ones around me.

Practicing hard is a prerequisite

To achieve such skillful performances of balancing on a tightrope, behind each artist are thousands of hours of arduous practice. And Trading is the same, no one can make a profit from the market without going through practice.

Fortunately, we do not need to pay the price of losing orders, or wait for the real-time chart to run to increase our practice time because there is a backtest feature from Trading View. This is the way I always advise people to practice to make quick progress, and verify what they have shared.

If you don't know how to practice through the backtest feature on TradingView, you can read the article Instructions for using TradingView to analyze and backtest Price Action.

Psychology is an important factor

In balance performance, psychology is a very important factor. Requires performers to concentrate intensely on every small movement and every breath.

If the performer is not confident, shaky or subjective, the performance may not be successful. Psychology can easily be affected by many good factors at that time,... But if you have a strong mentality like during the training process, you will easily succeed because it is all a lot of practice.

Trading is the same. Technical factors and practice are also very important, but at the time you enter an order, the psychological factor is the most important thing.

Greedy psychology can cause you to have FOMO on bad orders leading to losses.

Fear can make you not dare to enter an order, or if you cut the order early, the price will tend to rebound a bit.

Anyone who has been in the market for a while will realize the importance of psychological factors when trading.

Risks will be reduced and you will be more confident if you have an insurance cord

Tightrope walking performances often take place on very high ropes, even in circuses. If the performer makes a mistake and falls from that height, it can cost their life. .

But the risk will be reduced, and the performer will also be more confident and less shaky if there is a safety rope or a safety net underneath.

And similarly in Trading, we will be confident and reduce risks with stop loss, this is an indispensable tool if you do not want to burn your account or lose all your previous profits.

Because if you have money, you can do it again. Even if you are right 10 times, if you are wrong just once without a stop loss, you will lose everything.

Insurance helps tightrope walkers keep their lives, stoploss helps traders have money to continue!

Success needs to be measured over a long journey instead of a few steps

When balancing on a rope, the show is only successful when the performer goes from one end of the rope to the other, so taking a few steps does not bring much meaning other than having a start. favorable.

I see a lot of people, when they make a little profit from investing or trading, they will post it on social networks like it's their daily income and multiply it to get monthly or annual income.

When I see these posts, I understand that they are still F0 newcomers to the market because in the financial investment market, your success can only be measured in a long journey instead of just a few steps.

I myself have gone through similar stages before. Although it's not like uploading to social networks, there are certain illusions and subjectivity when having a little success and then having to pay the price.

Anyway, at that time, I still thought optimistically and felt lucky, so I experienced early losses so that I could see realistically early to try to learn and manage capital better, rather than fail late, the consequences will be big. more.

If you currently encounter failures or early losses, take it as luck!