Successful traders must accomplish these three steps.

Step 1: Establish an effective trading system.

The so-called effective means 'positive return,' which, when executed over the long term, can truly generate profits.

Why do many people fail at this first hurdle?

Because many people lack sufficient patience, chase the market and operate randomly, without ever forming an 'effective' trading system. Before they even determine their trading system, they have already lost all their capital!

Step 2: Establish a good mindset.

What is a good mindset?

Do not be anxious. Being eager to make money will surely lead to losses.

Do not be greedy. Dreaming of making a fortune. The principle of heavy positions leads to certain death.

Do not be fearful. It is also not acceptable to hesitate when it is time to take action.

Do not avoid. When facing losses, one must be brave enough to cut losses. There is never a wrong time to cut losses.

Step 3: Establish consistent execution power.

Some people, even if they have established an effective trading system, cannot pass the execution hurdle.

The core issue still lies in a lack of deep understanding of the trading system, which leads to hesitation or doubt during the execution of the trading system.

Therefore, it is still necessary to enhance one’s understanding of the trading system, trust the trading system immensely, and achieve 'unity of knowledge and action.'