The biggest change in going from loss to profit was not how much my technical level improved, but rather the significant change in my understanding of trading.
Once, I believed that the main reason for losses was a lack of technical skill, so I searched for the perfect methods and systems. In the end, I realized that there is no perfect system; what matters is sticking with it and achieving positive results.
I always liked to predict market trends, analyzing where the tops and bottoms were, drawing lines every day, and looking at various reports. The result was being right twice and wrong eight times. I selectively forgot those eight mistakes and only remembered those two correct predictions, leading to a habit of thinking I was infallible, which ultimately resulted in various losses. Later, I had an epiphany that the market is always unpredictable. What I should do is to follow, not to predict.
My previous trading methods were very chaotic, with nearly a dozen different strategies. Whenever one strategy lost money, I would switch to another, resulting in very few months of continuous profit exceeding three months throughout the entire year. This made me realize that in order to profit from trading, consistency is essential. The core of profitability lies in consistently executing a positive trading system.
Before, I always placed great importance on technical analysis, putting all my energy into it while never truly caring about money management. In the end, I found that technical analysis is the least important; without proper money management, no matter how good the technical analysis is, you will still lose money.
I once thought that the market keeps changing and that using rigid methods for analysis would never make money. I later found that the market is always changing, and you will always lag behind it; no one can predict the market. What can be done is to respond to changes with consistency, simply put, just follow one line to succeed.
Once, I wanted to capitalize on any market movement and never wanted to miss out. Whether it was a range or a trend, I would buy high and sell low in a range, and buy with the trend in a trending market. The result was various losses. Ultimately, I fell back into the cycle of predicting market movements; regardless of whether it was a range or a trend, I treated it as a trending market, accepting losses in ranges and profits in trends, avoiding the situation of losing in both.
I used to deny any indicators, thinking that indicators should come after the candlestick patterns, with thematic operations being secondary. So I relied on low-K analysis. However, I encountered a problem: subjective trading, which is the main reason most people lose money. To be profitable, there must be trading rules; the biggest issue with subjective trading is its inability to be quantified. Without quantification, there can be no consistent execution, leading to losses. No matter how I analyzed moving averages, it was useless; I would go short when the moving averages were bullish, which is part of my rules. Using locked orders, if I felt good in the morning and went long, then in the afternoon, if news broke, I would immediately go short, instantly changing my mindset. This kind of thinking is a sure path to failure.
The role of indicators has never been to predict market movements, but rather to serve as a tool for establishing rules.
The above are some changes in my understanding from losses to profits, and there are still some that I haven't thought of yet. All of this was learned with real money from the market. If you cannot understand it now, that's okay; save it, and I believe that one day you will understand.