Wang Yangming once said, it is easy to break the thief in the mountains, but difficult to break the thief in the heart.
In the world of trading, technical indicators are like paths in the mountains; they seem clear, but human weaknesses are like a fog that always shrouds our way forward. Those who can truly grasp the essence of trading must have gone through the process of self-awareness collapse. It's about letting go of the arrogance of thinking you can predict the market and acknowledging that you are just one among countless ordinary traders.
As Nietzsche said, when you gaze into the abyss, the abyss also gazes back at you. Therefore, only by facing your own ignorance and greed can you truly see yourself and establish order amidst chaos.
The path of trading is a life of hardship. Those who can climb out of it are the elite among people. During this period, they have experienced torment and pain. Every trader is exceptionally intelligent and does not lack high education or advanced cognition, and some have achieved success in other fields, coming with substantial capital, as well as prominent identities and statuses. The smartest group of people gathers in this arena, competing for survival.
The market has not created a single penny. It merely transfers the money from your pocket to someone else's. Although this game is brutal, it is indeed the fairest. The traders who ultimately succeed are not forced by education, cognition, achievements, or social status, nor does it matter how much capital you have. Successful traders all share one obvious characteristic: they are capable of constant reflection, continuous learning, and relentless change.
The enlightened do not pursue trading success, but instead follow the rhythm of the market. They grasp momentum, act in accordance with the trend, and exit in a timely manner. Enlightenment is the process of shedding attachment, focusing on the market's 'force' and one's own 'stillness', ultimately achieving a state of freedom to dance with the market.
Trading is actually very simple; what is rare is the human heart.
Many people have been trading for many years but remain unstable, not because the market is too difficult, but because they are too complicated themselves. True masters understand - In trading, as long as you take what belongs to you, you can be stable for a lifetime.
🧭 1. The essence of trading: Waiting + Execution
Trading is actually very simple: 📌 Waiting for signals 📌 Enter 📌 Exit 📌 Repeat
But the vast majority of people can't do it, because subjective awareness complicates things:
❌ "I think it will rise" ❌ "The trend should go this way" ❌ I want to control the market and predict the direction
The more you want to control, the more lost you become. Ultimately, it leads to subjective trading and emotional trading, exhausting both funds and rationality.
The essence of trading is 'clarity of mind' 'Clarity of mind' is the first hurdle in trading; facing one's inner self honestly is the key to growth. By controlling one's actions, finding a rhythm that suits oneself, and simplifying, one can ultimately overcome the weaknesses of human nature and achieve stable profits in trading.
The greatest characteristic of an excellent trader
The road to excellent trading is not about skill, not about methods, but about mindset. It is about what kind of person you truly are. The market is a mirror; what you see in it is merely your own illusion. At the same price point, you go long, others go short. Perhaps both can make money, or perhaps both can lose money, because everyone is trading merely their own desires, fears, greed, anxiety, arrogance, humility, and so on, which constitute the traits of themselves. What you are actually trading is what kind of person you are. In the end, those who can truly emerge as traders have the greatest trait: the embodiment of contradictions, the unity of yin and yang. What does it mean to be the embodiment of contradictions? What does it mean to be the unity of yin and yang? It means that he can be both arrogant and humble, both greedy and fearful, both brave and cautious. The market's rigorous tempering has refined him into someone who can integrate all contradictory elements together.
Why is it that mastering technology still leads to losses? This is the fundamental reason. In trading, technical learning is additive, while mindset cultivation is subtractive. In the face of challenges such as opportunity, patience, calmness, decisiveness, loss-cutting, and perseverance, true traders must transcend greed and fear, acknowledge failure, and adhere to simple principles. Cultivating the right mindset is more difficult than mastering technology, but it will ultimately lead to stable profits. Sorry, due to restrictions, one image is missing.
After making a profit in trading, how to avoid rapid drawdowns?
I am Lao Gao, and in the past, whenever I made one or two profitable trades in a row, I would immediately start losing and give back all my profits. This habit has followed me for a long time and is quite deadly😣. The trading curve is like a roller coaster, and I can't hold on to profits at all; I can't control the drawdowns either. As a long-time 'leek', I have come to understand that without control measures, even if I earn 1000% in one go, I will eventually lose it all slowly. The first control measure: Don't be too eager to make money💰 After making one or two consecutive profits, it's easy to get carried away and lose all respect for the market, especially since making money feels too easy.
Don't be greedy in trading; simplifying is the true way.
Let's not beat around the bush, I'll share my trading experience with you all 😎. Stage One (Beginner Bonus Period) When I first got into trading, there were no trading systems at all. I simply learned to draw lines and used some commonly used technical indicators to decide when to enter. I had no clue about concepts like stop loss, position size, and risk; I basically just placed orders and closed them based on my gut feeling. It seemed quite silly, but I did manage to make a few trades and the profits were pretty good 👏. Stage Two Later, I wanted to find a sense of certainty. Why? Because I had missed too many profitable opportunities, I began to feel greedy, and I had also lost quite a bit, so I thought about finding more methods to get my trading success rate as close to 100% as possible. I started to use many indicators, drawing lines, data, and even the emotions in the community as the basis for opening positions. The result was that the factors to consider when opening a position became increasingly numerous, and this information often contradicted each other. Because there were too many references, I didn't even know whether to go long or short, and my execution greatly declined. If the market was trending upwards, I regretted not trusting the MACD golden cross, positive funding rate, and long-short ratio earlier. If it was a downward trend, I regretted not believing the bearish community sentiment and the death cross of moving averages. Once, with more than ten indicators and pieces of information pointing in the same direction, I decisively opened a position, and ended up getting liquidated in the opposite direction 😭. I struggled through this phase for many years.
Is it difficult to achieve stable profits in trading? The core issue lies in not addressing these 4 points. Stable profitability requires overcoming the loss mentality, establishing scientific capital management, maintaining a mature trading mindset, and decisively executing strategies. The key is the balance between losses and profits, rather than solely having a high win rate. Only through fixed models, scientific capital management, a mature mindset, and decisive execution can one achieve long-term profitability in the market.
Trading is the freest profession in the world, with legendary lives of tycoons like Buffett, Elder, Munger, and Lin Yuan among others. As the stock market traders say, there is no profession that allows you to enjoy a vacation in Miami while still earning considerable profits. Trading is a game that can be sustained for a long time; even if you are the owner of the best companies today, you cannot escape the losses caused by the disappearance of consumers. Unless there is no one in this market willing to buy or sell any goods. Starting today, I will officially document all the details of my trades, attempting to make a living through trading, which is the only profession that suits me.
The Six Realms of Trading From gamblers fully invested to enlightened beings, experiencing six stages: technical prisoners, strategic awakenings, high-probability players, and disciplined machines, ultimately understanding that trading is a game of human nature, where holding positions is like deep waters flowing quietly, and closing positions is like cutting bamboo with a knife, making trading an embodiment of philosophical thinking.
A trader's self-cultivation: Learning to embrace boredom In the past, I thought a master trader's life should be: dual monitors, fingers flying, completing dozens of brilliant trades in a day. Until I personally saw a friend who truly profits steadily; most of the time he is watching movies, reading books, or even ... daydreaming. He said, "The market's frenzy does not belong to me; I only take a small piece of meat that belongs to me." And what about me? I used to want to catch every V-shaped reversal, predict every high and low point. The result was constantly being slapped in the face by the market, working hard for more than half a year, only to return to square one overnight. I have experienced the longest "garbage time" where the market oscillates back and forth within a range. I kept buying high and selling low; I succeeded the first few times and felt like a genius. On the last attempt, I thought it would return to the range, but the market broke through directly, never to return. I not only lost all the previous profits but also incurred huge losses. Blood and tears reflection: Enduring loneliness is the way to hold on to prosperity: being able to calmly endure 70% of boring oscillations is the prerequisite for capturing 30% of trending markets. Abandon the illusion of being "all-powerful": you cannot capture all profits. Acknowledge that some money does not belong to you, and only then can you hold on to the money that belongs to you. Quality far outweighs quantity: throughout the year, the few key correct trades are often what allows your account to achieve a leap. Now, I have also learned to "daydream". Not really daydreaming, but waiting. Waiting for the most perfect signal in my system to appear. Trading has finally transformed from a tiring competition to a serene practice.
Self-reflection in trading: 1. Can you remain calm about missed market opportunities? 2. Can you avoid discussing the market with others? Including family, spouse, friends. 3. Can you trust the trading system you execute? 4. Can you believe that your trading can achieve great success? 5. Will you persist in keeping trading records? 6. Will you pay attention to your emotional changes during trading?
Take it slow, and solidify every step; the results will come naturally.