Trading must be done carefully and not excessively. Trading is a probability game. From a probability perspective, frequent trading will make the probability infinitely close to the result of tossing a coin and lose the high probability advantage.

At the same time, frequent trading means frequent decision-making. Each decision will consume your energy, leading to a decline in judgment, and high-frequency decisions will further increase the difficulty of decision-making.

Secondly, the transaction costs of frequent transactions are very high. From the perspective of return and risk, this is a high-cost, low-probability trading activity.

Trading ability is something with boundaries, that is, a circle of competence. Everyone should abide by their own circle of competence, like a lion king, patrolling and enjoying prey in their own territory, and never rashly compete with the lion king in another territory, let alone foolishly compete with the lion king in the water. The crocodile goes to grab territory.

In our daily lives, it is very popular to organize this class reunion, that hometown reunion, etc. The reason why this kind of social activities to catch up with the crowd continues to be popular is based on this ancient survival logic: that is, the wider the network of people, the more people you have. The greater my personal energy, the more social resources I will obtain. Is it really?

This is a wrong one-sided understanding. The so-called social circle in life is actually a resource exchange circle, not your resource utilization circle.

Whether others socialize with you essentially depends on whether you are worthy of socializing and whether you have resources worth exchanging. If not, others will sooner or later not take you to play.

Social circle is actually a pseudo-question. The real question is whether you are worthy of being socialized by others.

So instead of wasting energy on such boring and ineffective socializing, it is better to develop your core abilities in a down-to-earth manner. With this ability, you will naturally have a social circle.

When it comes to personal ability improvement, depth is the key compared to breadth. Breadth is just a foundation and needs to be experienced in the beginner stage. But to truly build your own core competitiveness, you must have depth.

To gain depth, you must draw a circle of competence for yourself, work intensively in this circle, polish it with concentration, and forge your own unique skills.

The risks for novices in trading mainly come from ignorance and lack of restraint on human weaknesses. At this time, there is actually no circle of competence, and more breadth is needed as a basis to cultivate abilities.

The risks for veterans mainly come from their arrogance and superstition about their abilities, their unwillingness to stay honestly within their own circle of competence, and their cross-border transactions from time to time. Because cross-border operations are subject to limited capabilities, they will inevitably reduce the probability of success and lead to losses.

For a speculator, the most important thing is not the size of the circle of competence, but knowing where you are. If you know the boundaries of your circle of competence, you will be better than someone whose circle of competence is 5 times larger than you but doesn't know where the boundaries are. People are much more important!