Raising awareness is not only a path to growth in the world of trading, but also a challenge for many traders. A lack of awareness can lead to all efforts being wasted. However, the key question is how to improve our cognitive level. I'm always looking for answers and I hope to help improve your trading skills. This article tries to explain the essence of trading in concise language to help readers improve their awareness. But the real improvement is often the practice and experience of the individual.
There are two kinds of cognition in the world: objective cognition and subjective cognition. Objective cognition, such as 1+1=2 in mathematics, is indisputable; Subjective cognition, such as aesthetic concepts, everyone's understanding of "beauty" is different. Picasso's paintings, for example, are considered treasures by some, while others are considered by children to graffiti. This difference reflects the fundamental difference between the two perceptions. Cognition in trading, such as stop loss, take profit, self-consistency of trading logic, uncertainty, etc., is mostly subjective cognition. There are no set standards for these, and traders need to build and understand them on their own.
I once said that the market you experience in trading is your worldview. If you haven't experienced the ups and downs of the market, your perception may be just empty talk. It's only after you've experienced a time and time that your hard-earned profits have disappeared due to a single wrong insistence that you really appreciate the importance of stop-loss. Only when you keep changing trading systems, but it is still difficult to make a stable profit, will you understand that the stability of trading logic is more important than skill. It's only when you've studied countless indicators and strategies and found that there's still nothing you can do about the market that you'll start exploring the underlying principles of formation.
Behind the subjective cognition such as stop loss, trading logic, and market principles, are the pain, struggles, and growth experienced by traders. This is unimaginable for those who are limited to self-knowledge. Trading is a lifelong practice, and it seems to be the fate of traders to raise their awareness on the verge of failure. Without experience, there is no growth.