In the trading world, being a sly person with principles is the most popular!
In the real world, we always hear others say that you have to persevere in doing things to succeed, but in the trading world, such a concept is not desirable. Being a sly person with principles is the most popular in trading. Because there is no definite answer in the trading world, unlike the real world where the rules of a certain industry are fixed, as long as you work hard and reach the level specified by the industry, you will be considered successful. The trading world is different. There is no definite answer to how the market will go. Therefore, being a sly person is the best choice. When the market is bullish, go long. When the bears are strong, stand on the side of the bears. Haha, is it a traitor's quality? In fact, it is not a traitor, but we only choose to stand on the strong side, because history is always written by the winner.
The greatest pleasure in trading is uncertainty, so it is normal to make mistakes in trading. If you still insist on being a die-hard long or die-hard short at this time, you will die miserably. The smart thing to do is to admit and correct the mistake as soon as possible, and don't have any fluke mentality.
Some people may ask, how to determine that there is a mistake in your judgment? This problem is very realistic. This is the principle mentioned above. To be a sly person with principles, the standard for judging right and wrong is not feeling, but a unified principle that can be quantified. Only a unified principle can ensure that we make consistent judgments at any time, so that we can calculate the success rate of this set of principles as a reference for our operations. When we find a set of operating principles with a success rate of more than 70%, we will fix it and firmly follow this set of operating principles. It is natural to make profits over time.
Summary: Trading is a probability game. If you can insist on making high-probability transactions, it is normal to make profits. However, due to the uncertainty of trading, we cannot be dead long or dead short in trading. It is like we know that the probability of forming a divergence after two centers is more than 70%, but it does not mean that all two centers will form a divergence after a sell, and there is a 30% probability that it will not.Therefore, in the world of trading, one must learn to be a sly person, a sly person with principles.