The market uses the most plain and unpretentious reality to tell us the irrefutable truth: the eternal law of the investment market is that 90% of people lose money. No one can change the natural law of the investment world, because this is the eternal iron law of the investment world!
It’s not that this mysterious industry is as difficult as the legend says, but because most of us have an irresistible nature - to doubt the system.
It is this fatal nature that ultimately leads to the failure of our investment. And the trust system is precisely the most important part of the transaction.
It is difficult to trust and strictly adhere to a good trading system. In reality, it will always become difficult to implement due to various unsatisfactory factors in actual transactions.
The success of investment is to repeat a simple profit model and do it in large quantities. Only in this way can the high-probability characteristics of this model be demonstrated and stable profits be achieved.
Any system with a positive expected value can bring us huge profits as long as we stick to it and add reasonable money management.
Due to the lack of consistency, market-based trading leads to extremely unstable returns with huge ups and downs.
Many people are forever blocked from the successful investment market because of their doubts and inability to stick to a good trading system.
The market always forces us to change our trading strategies. Once we change, we will definitely lose.
The whole secret of trading is: stick to your trading system consistently.
The key to investment success is not how powerful and excellent your tools are, but whether you can use your trading tools well. On the road to the dream of wealth, the most effective strategy is to focus and stick to a good trading system. Focus and persistence can produce incredible power. When you really do this, you can create miracles that you can't even believe.
Greatness in any field comes from a person's ability to persist until all obstacles are overcome. Since ordinary people completely lack this determination and ability, they are almost destined to be ordinary and mediocre.
Sticking to a successful trading system is the only way for a small person to achieve great things. Any trader must have the determination and confidence to turn small things into big things. Don't easily doubt your proven good trading system.
Successful traders have a completely different way of thinking and trading attitude from ordinary traders. That is, all successful traders firmly believe that sticking to a successful trading system is the only choice for small people to achieve great things. Doubting your own trading system is the beginning of investment destruction.
What super traders compete on is often not their skills, but their qualities.
Successful traders have a unique quality. They have the right way of thinking, a rigorous trading attitude, strong self-confidence, courage, and a spirit of never giving up in the face of failure. Even when the system is in the most difficult time, they can trade completely according to the system. Because they know: success requires a long-term vision, overcoming the short-sighted weaknesses of human nature, and having the patience and confidence to stick to a fixed profit model.
The deep-seated causes of greed and fear lie in confusion in trading concepts and unreasonable fund management.
There are two emotions that dominate our lives and even determine our fate: greed and fear. Investment is a microcosm of life, a miniaturized life.
People in the investment world are also tempted and driven by fear and greed. The naked money transactions in the investment world amplify this emotion, so that our thoughts and moods are completely lost in fear and greed.
In fact, when operating foreign exchange, we should not expect to capture all the long and short market trends in the trend. Instead, we should only operate one-sided market in accordance with the main force's thinking. The foreign exchange market is a never-ending trading market. Even if we miss a good opportunity, as long as we are patient and can control our greed.
There will always be a good trading opportunity next time. But in reality, most of us can never control our greed and blindly chase ups and downs after missing the reasonable entry opportunity.
There are many times when we cannot suppress our inner fear and manually close positions that could have made huge profits without the system triggering a stop loss.
Almost all failed traders are confused about trading concepts and do not understand the philosophical principles of trading profits, which makes them unable to accept losses in the system and thus cannot enjoy the shock of huge profits. In trading, losses are just the cost and price we must pay in order to achieve the final victory, and it is as natural as human breathing.
However, after experiencing several consecutive losses, many investors often give up an excellent trading system because of the fear of the unpredictable future. A successful foreign exchange trader must develop a correct understanding and mentality of losses.
Only when you properly understand the significance of losses in the entire trading system can you operate in a stress-free state of mind. Unless you can accept losses calmly from a trading perspective, you will never become a profitable trader. In order to pursue overall profits, you must accept temporary losses.
All the above weird trading behaviors are caused by the investors’ unclear trading concepts and the lack of understanding of the profitable trading philosophy of the investment industry. Imagine if we have the correct trading concepts and can deeply understand that successful trading is not about the judgment of the trend of long and short, but about strict compliance with discipline.
Then, will we still be indecisive about the trend when the system sends out a long signal? If we can deeply understand that trading has nothing to do with trends and is only related to trading signals, will we still be restless and watch the external market, listen to news, and operate randomly during the trading?
If we have a deep understanding of the trading philosophy of investment profit, and losses are just the inevitable path for us to capture success, will we still refuse to accept losses and instead pursue and look for a trading system with a high winning rate?
If we understand that all trading systems can only capture a specific period of market conditions, and that no system can capture all fluctuations, and that doing more does not necessarily mean more profits, will we still be greedy and want to have all the profits and trade frequently?
Trading has nothing to do with anything else but the trading signals of the system. The direction of the trend has nothing to do with your success. Watching the foreign market, listening to news, and asking experts, all of these will only make you more anxious and will not help you succeed in trading.
As long as the system shows a short signal, we can only go short even if everyone in the world is bullish. Only by strictly following the system can we minimize losses and maximize profits. There is a famous saying in the futures industry: "A good trader is a trader without opinions."
There is another situation that can cause us to be fearful and greedy, and that is the irrational use of funds.
Heavy positions, full positions, and continuous increase in positions will cause your operating funds to bear excessive risks. This gambler-like operation method can only lead to two results: either huge profits or liquidation. As a result, traders are extremely afraid and hastily close their positions before the market reaches the designated stop loss position. This will cause the entire operation to be deformed, or they will give up an originally good operating system due to fear.
Trading is a discipline that seeks a balance between returns and risks. We can neither blindly use heavy positions nor always use light positions. We should be light when it is time to be light and heavy when it is time to be heavy. Not only qualitative but also quantitative should be used to guide actual operations. Changing trading positions according to the trading system and the amount of profit is the essence of fund management.
What trading brings us is not only money, but more importantly, the enlightenment of wisdom and the return to the true nature of human nature!
A good trading system is the starting point, execution is the difficulty, and a practical trading strategy for yourself is the key. By constantly refining and improving the details of the trading system to suit my own trading personality, my execution has greatly improved. When trading, it is as smooth as flowing water, without any psychological pressure, and trading becomes comfortable and natural.
When it comes to discipline issues in the investment world, we can often adapt to our own personality by refining the trading system; designing excellent fund management to reduce psychological pressure during trading; cultivating the internal trading skills of funds to prevent arbitrary operations caused by incorrect understanding of investment; and solidifying the trading process so that we can easily abide by trading discipline.
Technology is just a very insignificant obstacle on the road to success. Behind the good application of technology is the inner strength of trading.
After getting a profitable trading system, it is often not fully implemented in actual operation for one reason or another. What is affecting our execution of an excellent trading system? It is the trader's belief and ability to thoroughly implement the trading system. The key factor that controls the success or failure of a transaction is belief. The size of self-confidence determines the size of a person's achievements. The size of a person's achievements often does not exceed the size of his self-confidence. The prerequisite for success is self-confidence.
Trading skills:
1. Profitable Trading Philosophy
2. How investors view themselves and the market
(III) Correct trading concept
(IV) Investors’ attitude towards the investment market and firm trading beliefs
(V) Trading behavior and trading process in actual combat
Many people have a profitable trading system but are unable to execute it, largely because they doubt the system and do not have a firm belief in their trading system. "We must not only have a trading system, but also a belief system."
How can we form a firm belief in our trading system in trading? The answer is simple, that is to be familiar with the system, understand the system, and integrate the system. Trading technology and trading philosophy are integrated and are the concrete embodiment of trading philosophy. Only such technology can be deeply rooted and applied smoothly without many obstacles.
Only when investors train their trading skills into a trading habit, and reach the point of being so proficient that they can do it without thinking, can they truly resist the charming temptation of the market and fully achieve the ability to operate according to system signals without distortion.
Investing is a marathon, not a 100-meter race. In this protracted race, what matters is not who runs the fastest, but who runs the most steadily.
We usually just focus on a familiar variety for a long time, so that we can quickly get familiar with this variety and form a certain degree of tacit understanding with it. Only by matching our heart rate with the fluctuations of the market can we achieve a comfortable and natural state in trading.
Investment is a game, and only by being relaxed, simple and following the rules can you achieve profitability in the competition. If you feel anxious and panicky in your daily transactions, and your mind is unsettled, then it is definitely because your trading method and your heart rate do not resonate with this product and reach a tacit understanding, so it is difficult for you to achieve the goal of making a profit from your investment.
Firmly following the system and not operating when you can easily make money is against human greed. Trading is like this, you grow gradually in the constant struggle with your own human nature. Only when you make the originally uncomfortable trading gradually become natural and smooth, you can become a successful trader.
