Want to do proprietary trading? First get rid of these 3 mentalities that keep you losing money

Obviously, you can make stable profits in the real market, but how come you can’t even pass the self-operated assessment? Many people don’t think about this problem until they are terminated from trading. In fact, the answer is simple: proprietary trading and real trading are not the same model at all. It has an extra layer – rules. And this layer of rules is like a mirror, showing your shortcomings clearly.

If you want to pass the level, the following three mentalities must be changed.

Eager to prove one’s mentality

When many traders enter the proprietary trading assessment, their first reaction is not to formulate a trading plan, but to calculate the time to achieve the goal. I always thought about “How long will it take to achieve the 10% profit target?” “Can it be done within a week?”

As a result, the trading rhythm began to get out of control: the market that should be waited for could not wait, and orders that should not enter the market also entered the market; the system that originally only made one or two orders a day was forced to become a high-frequency trial and error.

On the surface, it looks like “active trading”, but in fact it is just exchanging frequency for results. But the thing is, trading is never a game of speed.

When you make every operation with the idea of ​​”reaching the target as soon as possible”, your judgment has been distorted by the target. Under EagleTrader’s rule system, this out-of-control rhythm will speed up the process of being “terminated”.

To a certain extent, this also reveals the fact: It’s not that you can’t make money, but that you can’t survive at the correct trading rhythm.

Carry orders without losing money

The second mentality is more common and more hidden. It’s not that many people don’t know the importance of stop loss, but they find reasons for themselves at critical moments: “This position should rebound” “Wait a little longer, maybe it will come back.”

As a result, stop loss was delayed again and again, and risks continued to accumulate. The biggest problem for this type of traders is not their skills, but their unwillingness to admit that their judgment is wrong.

In ordinary trading environments, this behavior sometimes “seems to work” – the market returns and the order is unwound. But this only reinforces a dangerous habit: using luck to cover up mistakes.

Under EagleTrader’s assessment mechanism, the maximum drawdown and risk limit are both rigid conditions. Once the error expands to a certain extent, the platform will directly terminate your space to continue operating.

Many people understand this as a “restriction”, but from another perspective, it is actually helping you accomplish something that is difficult for you to do – stop the error before it gets out of control.

Emotional revenge trading

The last one often happensafter consecutive losses. When traders experience several stop losses, their psychological state begins to change – they no longer focus on the strategy itself, but think about “how to get the losses back as soon as possible.”

At this moment, the starting point of the transaction has deviated. So you will see a series of chain reactions:

Positions are involuntarily enlarged

Entries become more frequent

Originally clear entry standards are continuously relaxed

It seems that they just want to speed up the pace, but in fact they are using higher risks to fight against the losses that have already occurred.

The originally controllable retracement has been continuously amplified, and the transaction structure has gradually become unbalanced in the process. And all of this happens at the same stage – when emotions start to take over decision-making.

Why are these problems so difficult to solve through “self-control”?

In fact, this is not the first time that every trader has heard these truths, nor has he made up his mind to change, but at critical moments, he will still repeat the same mistakes.

The reason is simple: most mistakes in trading are not cognitive problems, but behavioral problems. As for behavior, in an unconstrained environment, it is difficult to maintain it through “self-discipline” for a long time.

This is why the same person, under different circumstances, will have completely different trading results. When there is no restriction on trading, you can increase your position unlimitedly, modify your stop loss at will, and make trial and error based on your emotions.

When you enter a regulated environment, the trading rhythm is restricted, and the risks are framed, you will find that many recurring problems begin to have “no chance of happening.”

This is also the significance of the emergence of proprietary trading!