It is said that trading is a waiting game, so what are we waiting for?
When we are short, we focus on finding entry signals, and when we are long, we focus on exit signals. These signals are like traffic lights. Stop when the light is red, and act when the light is green. If there is a signal, execute it, and if there is no signal, wait patiently. Similar to fishing, we need to pay attention to the changes in the float, and prepare to raise the rod when the float moves. Although the fluctuation of the float does not necessarily mean that there is a fish, if there is a fish, it will inevitably affect the float.
Every entry is a trial and error, and the cost of this trial and error is the price that must be paid to make a profit, just like the need to put bait when fishing.
In the process of trading, it is often encountered that the trend is not revealed until it ends. Before the market is clear, we cannot be sure how the trend will develop after entering the market. The problem of trend confuses many traders. In fact, as long as you take action, there is bound to be the possibility of making mistakes. To have a positive overall result, you must accept fluctuations in the short term.
Many trials and errors may fail, just like when fishing, we must accept that the bait thrown may be wasted. Sometimes the fish does eat the bait, but it does not take the bait. Therefore, the challenge we face is how to ensure that the harvest from fishing exceeds the cost of bait.
This question is worth thinking about repeatedly, and the answers may be different in the early and later stages. This also explains why some people can continue to make profits when the signal appears, while others are lost in the market for years.
In fact, most of the energy for successful trading is outside the market, not just in the market. As the saying goes, "Ten years of hard work off the stage, one minute on the stage", do more summarization and verification, and you can test your ideas through replay, so as to eliminate errors faster. Before understanding the principles of the market, reducing positions can help us survive longer in the market.
