3.7 Discussion on "learning" and "thinking"

The formulation of a trading strategy is based on the trader's learning and thinking. Different traders focus on these two aspects, and even some traders focus too much on one aspect, so that they produce deviations that they have never noticed.

• Too much focus on learning

The process of self-growth of any trader can't be separated from the experience of learning from predecessors and others. This approach and process makes it necessary for learners to be influenced by historical experience.

There are countless established trading strategies in history. If each strategy is a "good strategy" for a specific individual trader, then not many people in the real trading environment are in anxiety and annoyance. Therefore, when a trader faces the summary of others, it is necessary to constantly ask a question. Is this strategy really a "good strategy"? If it is really a "good strategy", is this strategy suitable for me? If I think this is a good strategy, should I use the test method to verify?

In the actual trading environment, few traders verify the established trading strategies in history, and even some traders use a strategy that they see or hear as the only standard without any verification. Used, but most of the results are not satisfactory, and even bring great risks.

• Too much thinking

Some traders, after having some knowledge related to financial transactions, then spend almost all their energy on "thinking", thinking about how trading strategies are built, thinking about how to quickly capture opportunities, thinking about what might happen next, etc. .

Everyone at work or in life wants to be recognized for their own value (or from the outside world or from themselves), which is no exception in trader development trading strategies. When a "too much thinking" trader independently develops a trading strategy, because the strategy is developed independently by the trader, and the trader has already learned the other knowledge, this makes the trader in the strategy test or In practice, the strategy is more likely to have a repulsive psychology that ignores certain phenomena that are contrary to the expectations of the strategy in testing or practice, or from some explanation to convince me that the strategy is still valid.

Traders need to treat the "learning" and "thinking" aspects in a balanced manner, so that the established strategy is in an "open" and "rigorous" environment, which is conducive to further improvement of the strategy.

More articles, please browse the "English version index"