When I was hanging out in the brokerage firm's trading department, I met a guy named Zhang.
This person was completely different from others in the trading department—while others were shouting at the screen, he carried a thermos, either leaning back on the sofa with his eyes closed or leisurely sipping tea, hardly speaking throughout the day. His trading was also so simple it was almost laughable; unlike others who frequently changed stocks and chased prices, he could count his trades in a month on both hands.
But by the end of the year, when everyone privately showed off their profits, everyone was stunned: this group of 'smart people' who stayed up late researching candlesticks and listening to news either lost everything or barely broke even, while only Zhang's account had astonishingly increased tenfold or more!
What’s even more outrageous? Later, as we became familiar, he revealed to me that in a year, he could lose eight times out of ten trades.
I was almost in disbelief at the time, pestering him for half a day to find out that his secret to making money is just one sentence, yet few can do it: You have to stay at the table first to have a chance to win money.
This sounds simple, but the details of his operations hide profound knowledge; all solid practical survival advice:
The principal is divided into ten parts, and he never bears losses: He divides his principal into exactly ten parts, only daring to use one part for each order. Moreover, he sets a stop-loss line at 5%, no matter how promising the stock looks later, as soon as it hits the stop-loss line, he immediately cuts losses and exits the position, never lingering. In his words: “A 5% loss is just a flesh wound, but if you hold on to a 20% loss, that’s like breaking your arms and legs.”
Stop after three consecutive losses, never go against the market: this is his strictest discipline. As long as he has three consecutive losing trades, no matter how tempting the market looks that day, he immediately shuts down the computer and unplugs the internet, turning around to go for a walk in the park or walk the birds, and he won’t touch the account the next day. Last year, when the market fluctuated back and forth, how many people were repeatedly harvested by the market, losing their mindset and losing more by trying to recover, while Zhang was already having tea and watching a show in the park. He said: 'There are opportunities in the market every day, but once the money is lost, there’s truly no chance left.'
He doesn't look at flashy indicators, only recognizes two lines: Unlike our group that studies the 5-day moving average crossovers and various MACD and KDJ indicators daily, Zhang only focuses on two lines. He only pays attention to stocks above the 30-day moving average, saying this means 'standing firmly in the main rising wave, with profits to be made'; he won't touch coins or stocks below the 200-day moving average, no matter how lively it is, even if the table next to him is shouting 'it will double', he won't even lift an eyelid. He bluntly states: 'Those complex indicators are noise prepared for retail investors; the more you look at them, the faster you die.'
What I admire most is his contrarian operation against emotions; it's simply a refreshing anti-human perspective.
The colder the market, the more excited he gets when no one is talking in the trading department; he slowly scrolls through the stock pool with his phone; when the community is full of complaints, all saying 'the A-shares are finished', he instead feels that an opportunity has come. After the sharp decline, everyone is too scared to buy, he picks up chips bit by bit; when the market surges, and the whole market is celebrating, with moments filled with 'hundred-fold myths' in social media, he instead stays vigilant like a cat, quietly reducing his holdings.
What’s even more amazing is his way of increasing positions: only using profits to roll over, he withdrew the principal early on. The principal he initially invested, he withdrew after making the first wave of profits, either depositing it in the bank or buying government bonds, and everything he plays with afterward is market money, keeping his mindset steady. Moreover, increasing positions is like stacking a pyramid, heavily at the bottom, reducing the amount by half every time it rises by 10%, getting lighter as it goes up, never giving profits back to the market.
Zhang also summarized two simple rules for me, seemingly simple yet hitting the pain points of countless people:
Long upper shadows at high positions have a 70% probability of crashing within a week.
Coins that decline without volume are specially designed to treat impatient retail investors.
When he said this, I thought of the pits I had fallen into before; every word was heart-wrenching. These rules can actually be found online, but he said that among the people he has seen who can execute them consistently for ten years, there are less than 5%.
Nowadays, too many people are always thinking about getting rich overnight, chasing hundred-fold stories every day, and what’s the result? Most have become the market's nutrients, being harvested time and again.
On the contrary, Zhang's 'stupid method' of not being greedy, anxious, and maintaining discipline has outperformed 99% of 'smart people'.
The more I think about it now, the clearer I understand: Slow is the fastest way. In this market, it’s not about who makes more money in a certain instance, but about who lives longer. When the market is crazy, if you are not standing guard outside, and when the market is warm, if you have chips in hand — that’s already winning by 80%.
So today I share this story with everyone and also want to ask you in front of the screen:
Have you set your stop-loss line?
Is your principal well protected?
When continuously losing money, are you willing to go to cash and stop?
Remember, rules are always more reliable than luck; staying alive is more important than getting rich quickly. In this market, avoiding one pit is already making money.
If you are also struggling on the investment road, have fallen into many pits, or have your own survival techniques, feel free to leave a comment to exchange ideas. And don’t forget to follow, as I will later share how Zhang specifically selects targets and judges trends, all solid practical advice. Follow the experienced driver to avoid unnecessary detours!
