"Doing less" in trading can be understood as being cautious and patient in the trading process, avoiding overtrading and impulsive trading. The reason why it is said that "doing less is progress" is because of the following reasons:
1. Reduce wrong decisions
Overtrading often leads to traders entering and exiting the market frequently, increasing the chances of making mistakes. The market is complex and unpredictable, and frequent trading can easily lead traders to fall into emotional decision-making and make wrong judgments. By reducing the number of trades, traders have more time to observe the market, think and analyze, thus reducing the likelihood of making wrong decisions.
2. Reduce transaction costs
Frequent trading not only increases the risk of decision-making errors, but also increases transaction costs, such as fees, slippage, etc. These costs can eat into a trader's profits and may even lead to losses. By reducing the number of trades, traders can reduce these costs and increase profitability.
3. Keep your mind stable
Trading is an activity that requires long-term patience and a steady mindset. Overtrading often leads to an unbalanced trader's mentality, resulting in negative emotions such as anxiety and impatience. These emotions can interfere with a trader's decision-making process and lead to wrong trading behavior. By reducing the number of trades, traders can better maintain a steady state of mind and avoid making bad decisions due to mood swings.
4. Improve the quality of transactions
Doing less trading does not mean giving up trading opportunities, but requires traders to do more adequate preparation before trading, including market analysis, risk assessment, etc. With in-depth research and careful planning, traders can grasp market opportunities with greater confidence and improve the quality of their trades.
In summary, the "doing less is progressing" trading philosophy emphasizes the importance of prudence, patience, and stability in trading. By reducing the number of trades, traders can reduce the risk of wrong decisions, reduce trading costs, maintain a stable mindset, and improve the quality of their trades. These all help traders succeed in the long-term market competition.