If everyone has his own trading system, will there be no losers in the market?
To make money from trading, two conditions must be met: one is a profitable trading system, and the other is strict execution.
The reason is very simple. There are many restaurants on the street. Some people make money, while others lose money. Why is this? The key lies in the people who run the restaurants.
Many people have read the book "Turtle Trading Rules", which has a plot.
The author taught his trading system to his friend and emphasized that his friend must strictly follow this trading system. As a result, the author made a profit in the end, while his friend lost money. Why? Because during the trading process, the trading system experienced a period of loss. During this period, the friend lost patience and confidence and stopped trading, so he did not catch the subsequent big market, resulting in the final loss. The author is very aware of the profitability of his trading system, so he persisted and made a profit. This is the difference between people.
Any trading system requires a certain period of time to achieve profitability, and any trading system will experience a period of decline, that is, a loss cycle. A profitable trading system must go through a process of alternating profits and losses to achieve the final profit, so execution is crucial at this time.
In the financial market, there are very few people who can concentrate on research and improve their skills. With the test of execution, a pyramid structure of profits will be formed, and 10% of people will earn 90% of the money.
I am Brother Ming. If you have any questions on the trading road, you can communicate with me. Welcome to chat!