It is still very difficult to achieve unity of knowledge and action in trading.

1. Difficulty in “knowing”

I remember reading in a book that it takes about ten years to enter the market and go through several bull and bear markets in order to make a profit.

When I saw this sentence, I felt that ten years was too long. I thought that if I studied more, it wouldn’t take that long. But I really started to make a profit after ten years of losses. Ten years later, I realized that the theories I had learned before were only half-understood and not fully understood.

2. Difficulty in Practice

Summarizing my past experiences, I feel that there are a few points that are really difficult to achieve.

First, it is difficult to stop loss. Although I know the stop loss theory, when the stocks I bought are losing money, I still need courage to make up my mind to stop loss. I always fantasize about what to do if the stock price rises tomorrow. The result is often that I get deeper and deeper into the trap.

Second, it is difficult to do medium- and long-term investment. Many retail investors are not suitable for short-term investment. I have told myself many times to do medium- and long-term investment, but it is really difficult to do so. The daily rise and fall of the stock market affects every nerve of mine. In the constant tossing and turning, I often forget the direction of the stock's medium- and long-term trend.

Third, it is difficult to hold an empty warehouse. It is estimated that every stock investor has this experience. If you don’t have any stocks, you will feel panic and lost.

3. How to achieve unity of knowledge and action

The first thing is to make an in-depth summary and truly integrate what you have learned. In my personal experience, those who fail to achieve unity of knowledge and action often do not really understand the theory thoroughly and are skeptical of the theory.

The second is to establish your own trading system, write your plan on paper, and use tangible things to constrain yourself. ​

Third, you can set up a simulated account and adopt different trading strategies from the real account, and use the comparative results to verify the correctness of the theory. Fourth, you can communicate with your relatives, tell them your trading plans, especially the stop loss and take profit plans, and let your family help supervise you.

Only when one day you are able to control your behavior within the plan written down on paper, profit will come.