Yesterday morning, I shared two possible trends—rising and falling. Many friends chose the downward direction after key points appeared, combined with my predictions, and achieved good profits. Of course, some pointed out that I painted two directions, which can be explained in any case. But in reality, attentive friends should have noticed that my judgments and insights regarding the key points for rising and falling are completely different.

The direction of the market is derived from continuous trial and error. Many people are afraid to enter the market because they lack a comprehensive risk control system; once the direction is wrong, it can lead to liquidation. However, even the best traders cannot predict the market with 100% accuracy; the only thing that can be controlled is the risk-reward ratio. For example, some people earn 300U with a risk of 100U, while others earn 400U with a risk of 200U. Although the results seem similar on the surface, the long-term risk-reward ratios for the two are entirely different. Only by maintaining a reasonable risk-reward ratio under strict stop-loss conditions can one remain undefeated in the long run of trading.

Teaching a person to fish is better than giving them fish. I always believe that what can truly help everyone is cultivating the ability to analyze and make decisions independently, rather than simply relying on my views. Friends who follow me all have the potential for independent thinking, and I very much look forward to a day when everyone can apply the knowledge and methods learned here to propose different insights, and even challenge my judgments in the comments section. Such discussions can benefit both parties and promote our mutual progress.