Humanity and trading

People once said, trading, in the end, is a game of mentality, and I truly believe so. 

The state of a person’s mentality, in my opinion, is driven by humanity. In that sense, humanity plays a key role in trading and is essential to the success of trading. It is never possible for anyone to accurately predict the future trend of the market. So what can help us to fill the gap? The answer rules. You can only rely on the rules that you made yourself. But even if you have the most comprehensive rules, if you don’t stick to them in trading, it is no use. 

So how come the situations when rules are not followed through? That is when humanity plays its part. Everyone who has practiced forex trading might know that it is totally different between talking in theory and practicing in real life. When not trading, one may have an amazingly high accuracy of market prediction. This is because, under those circumstances, he or she feels no pressure but a good sense of himself or herself. But when it comes to real-life trading, the true face of humanity is revealed. The trader’s head is then filled with too much fear, greed, desire to win and fear for loss and a huge concern about winning and losing for him to remember any previously set plans or rules. What awaits him, in the end, is losing money. 

At last, I also want to quote from a predecessor, who said humanity plays a key role in deciding the success or failure of trading. If forex trading can be seen as a war, the techniques are tactics, rules are strategies and humanity is responsible for integrating the rules with tactics to win the war. If techniques are water, then rules are the cups while humanity puts the water into them so that it won’t become flood but can be useful.