Trading experts have tried various indicators and methods, and suddenly one day they had an epiphany and turned losses into profits. What did they realize?
The "epiphany" in any field is not that you "suddenly become stronger", but that you "suddenly discover" that you have become stronger. In fact, you have been slowly becoming stronger for a long time.
Many people talk about the enlightenment of trading in a mysterious and profound way. I want to talk about some principles and feasible paths that ordinary people can understand.
Enlightenment does not mean discovering some magical indicators or methods that can make you profitable, but understanding the logic of trading profits and then using certain indicators and methods, and using the indicators and methods as the carriers of your own trading logic.
Indicators cannot accurately predict future market trends.
Trading experts do not need to use indicators, and can also use only a simple moving average. The focus is not the tool itself, but the logical concept behind the tool.
If the logical concept is not correct, the tool will not be able to play its due role.
Enlightenment is just the beginning, there is still a long way to go. If you can't do something, you can't call it enlightenment, you can only say that you know it.
From big losses to small losses to no losses to profits, every step is very difficult. It is not that you can make stable profits by suddenly becoming enlightened one day. You need to have a deep understanding of every link in the transaction. If there is a link that you do not fully understand, then sooner or later the market will make you bump into scars.
Many roads are only clear to you when you look back. There is no shortcut in this matter. It is easy to fall if you want to find a shortcut.
Rome was not built in a day. You think that others have achieved enlightenment overnight and then became rich, but in fact, it is often not like this. Trading masters have gone through a long period of accumulation. The advanced process of trading is a spiral upward, and one level after another is slowly broken through. Many times you think you have achieved enlightenment, but after a while, looking back, you have a different opinion.
Although there are no shortcuts in trading, you can avoid some traps and unnecessary detours.
For example, you can give up the greed for continued huge profits, give up the obsession with pursuing the Holy Grail, and give up accurate predictions of the market.
Here are a few key points:
The first is to accept that losses are part of trading, just like doing business has costs. If the trading logic is to cut losses and let profits run, don't pay too much attention to the winning rate. Under the same conditions, the winning rate and the profit-loss ratio are mutually detrimental.
The second is to try not to think during the trading session. Traders suffer more easily in their imagination than in reality. All thinking should be done before the trading session and when building a trading system. You can plan your trades and trade your plans. Avoiding thinking during the trading session can improve execution and avoid distorted thoughts and actions.
The third is to consider the decline of the trading system in advance. There is no perfect holy grail. The entry and exit signals should be standardized and clear as much as possible, so that they are easier to execute. At the same time, a lighter position can make your mentality more stable and your actions not deformed. In many cases, slow is fast.
The fourth is that you should not pursue innovation too much in trading. Innovation is only a means, not an end. You can refer to Mingge's experience. The trading system that has been verified by thousands of transactions can save several years. There is nothing new under the sun. Many times you think you have discovered a magical secret that only you know in the world, but it is often that many predecessors have tried it countless times and have already found a good way to deal with it.
The fifth is to cut losses and let profits run. Profits and losses have the same source, probability, and consistency. These are just basic skills and the foundation. The construction of a building requires a solid foundation, but it cannot only have a foundation. Specific building materials are also needed. Have you thought clearly about what the building materials in trading are?
The sixth is that you have to give up something to gain something. It is much better to obey discipline and wait patiently than to operate recklessly. When you have discipline and rules, life and trading will become easier.
Beginners like challenges, professionals seek simplicity, and simple things should not be complicated. The market has only one direction and millions of reasons.
Green Earth Circle, chat with Brother Ming!
