1. Trading is a waiting game
What is trading? It's just a waiting game.
Wait for every entry and exit signal from the trading system. The process of waiting is not static, but a process of adhering to the trading concept.
In the long run, traders who make stable profits are those who construct and execute trading systems reasonably, and consistently wait for signals with extraordinary patience during transactions.
The most basic logic of trading is: Only by losing the money that should be lost can it be possible to make the money that should be earned. Therefore, when you are in danger, you must stop the loss decisively, do not feel distressed or hesitate, keep a sense of luck, and operate with the mentality of a migrant worker.
Life is inherently full of uncertainty, which is the source of fear for most people. Once fear arises, people focus too much on the present.
Living is essentially a question of "degree". Pay proper attention to the present and make plans to cope with future uncertainties. Let everything take its course and just let it happen. People have understanding and know that only by paying proper attention to the present can they "get more".
2. Trading is about comparing the level of "character"
Trading techniques are ultimately about comparing the level of "character". "Houde Zaiwu", the words "hou" and "Zai" are so accurate!
Confucius said that there are five levels of people: mediocre people, scholars, gentlemen, wise people, and saints.
It is enough to do business, get rid of the "mediocre" level and reach the "scholar" level. It is even better to be better and to reach the "gentleman" level.
Mediocre: Deep down in the heart, there is no serious and prudent belief. Doing things carelessly, starting but not finishing. Doing things poorly starts with good and ends well. The friends I made were from all walks of life, but there was no one who was both good in character and learning. It’s not about settling down and settling down, and doing things honestly. Seeing small profits, forgetting righteousness, you don't even know what you are doing. Obsessed with sensuality, drifting with the crowd, and always unable to control oneself - those who behave like this are mediocre people.
Scholars: Have faith and principles. Although he may not be proficient in the fundamentals of Taoism and humanity, he has always had his own opinions and opinions; although he may not be able to do all kinds of good deeds perfectly, there must be something worthy of praise. Therefore, he does not require much wisdom, but as long as he has a little, it must be thoroughly understood; he does not require a lot of verbal theory, but as long as it is what he advocates, it must be to the point and concisely; he may not have accomplished many things, but every time he does something Everything must be understood why.
His thoughts are very clear, his words are concise and appropriate, and his actions are well-founded. He is as harmonious and unified as human life and body. That is an intellectual with a very complete and independent personality and thoughts. It is difficult for external forces to Change him. Therefore, being rich and noble does not see any benefit to him; being poor and humble does not harm him. This is the main characteristic of a scholar, that is, an intellectual.
Gentleman: The characteristic is that he must be honest and trustworthy when speaking, and have no hatred towards others in his heart. He is kind and righteous by nature but never shows off to others. He is reasonable, wise and open-minded, but never speaks arbitrarily. Be consistent in your behavior, stay true to your principles, and strive for self-improvement. He who is not seduced by honor, who is not resentful by slander, who does his own thing naturally and straightforwardly, and who restrains himself uprightly, is a gentleman.
3. Treat yourself as a fool to operate
Let yourself become a fool, with an IQ that is only at the level of parroting, and then do whatever the operating system tells you, so that you can maintain success in the transaction. Have a good attitude, be focused on nothing, and be as still as water.
Only by learning to fear the market, respect the market, understand the market, and eventually become friends with the market can we become stronger in the market.
Treat yourself as a fool in front of the market, do not predict the market subjectively, because all predictions are in vain, and do not try to take advantage of the market by being smart, because countless facts have proved that traders with this kind of thinking will eventually fail. The result is "stealing the chicken but losing the rice".
When fishing, you don’t know in advance when the fish will take the bait. You can only sit there and wait attentively. The waiting process is often more exciting than the moment you finally catch the fish. Don't make any excuses for yourself and work hard. People who are too calculating are doomed to fail in trading.
4. The "Five Poisons" faced by "Trading Strategy"
Whether one is practicing Buddhism or practicing "Trading Strategy", the problems faced are the same, namely: the Five Poisons ——Greed, anger, ignorance, conceit, and doubt. The five poisons corresponding to trading are greed, fear, ignorance, arrogance, and doubt.
Practice is not to suppress the five poisons of trading in the body, but to thoroughly understand it and then resolve it.
The pursuit of perfection is a manifestation of "greed". Avoid perfectionism when developing trading strategies or backtesting other people's trading strategies.
"Angry" means fear, that is, not daring to execute the signal.
"Slow" means arrogance. After traders have accurately captured the market many times, it is easy to develop arrogance.
The way of heaven is the way of humanity, and the way of humanity is human nature. Human nature is impermanent, and the manifestation of impermanence is that it can be encountered but cannot be sought.
In mentality control, only by losing the money you should lose can you make the money you should make. That's for sure.
Five.