Three realms of the futures market

Lao Zhang can be regarded as an older generation in the Chinese futures industry, with more than 10 years of experience. I met him at a symposium for futures traders in Shenzhen in 1997. At that time, I just entered the futures market and didn’t know anything. I learned everything from the most basic things to practical operations from him. That period was a period of depression for China's futures industry, but this did not hinder our love and confidence in futures. We worked hard in Shenzhen for more than a year. In 1998, Lao Zhang decided to leave Shenzhen, which we were already familiar with, and went to Shanghai, the financial center of China.

Lao Zhang believes in Buddhism, perhaps because he has stayed in Shenzhen for a long time and was influenced by the custom of worshiping gods and believing in Buddhism in Guangdong and Hong Kong. Lao Zhang told me that everyone knows the superficial things about futures, but there are very few people who can truly understand the true meaning of futures. The understanding of futures requires personal calmness and solitude. Only by tranquility can one achieve great success. People who are impetuous are not suitable for futures trading. Believing in Buddhism can make you calm and see through everything in the world. If you sit in a temple often, you can realize many things that you would never think of in ordinary times.

Lao Zhang often said that there are three realms of learning Buddhism. Before entering Buddhism, you will see "mountains are mountains and water is water" and things will appear static and isolated; when you first enter Buddhism, you will see "mountains are not mountains and water is not water", which means you stand high and see the essence of things. Finally, when you enter Buddha enlightenment and see that "mountains are still mountains, water is still water; mountains are also water, water is also mountains", it means that you have understood the mystery and know the connection, harmony and unity of all things. In fact, there are three realms of academic futures. When you first enter the futures market, you realize that "futures are futures", which means that you only know the superficial things about futures, and follow what others say; after a period of actual operation, you realize that "futures are not futures", which means that you have encountered huge setbacks in futures. , you have seen the essence of futures; when you finally enter the futures and realize the truth, you feel "futures are still futures", which means that you have completely understood the true meaning of futures. Lao Zhang also told me how he experienced these three realms based on his personal experience.

To put it bluntly, the first level means being able to enter the industry. In the futures industry, if you have good understanding, you can enter the industry in more than a year; most people need two or three years to enter the industry. In June 1991, the Shenzhen Nonferrous Metals Exchange was established, and at the end of the same year, Lao Zhang began to enter the futures industry. At that time, China's futures industry had just begun, and everything was blank. There were very few books about futures, and there was no Internet in China at that time. What was even more frightening was that the domestic futures market was very irregular at that time. There is no one to guide you, you have to realize everything by yourself. In the vast desert with no end in sight, you will feel isolated and helpless. Lao Zhang believes that he did not really enter the industry until the end of 1993. Nowadays, people who are new to the futures market are much luckier. The domestic futures market is becoming more and more standardized. There are many things left by predecessors that you can learn from, and there are many colleagues who can show you the way.

The second level is the most painful and difficult. If you want to become a qualified trader, you must pass this level. Many people get stuck at this level and have to leave the market. When you reach this level, you will feel that you no longer recognize yourself, and you will completely deny everything in the past. The wave theory, golden section, cycle theory, etc. are all useless. As long as you place an order, you will trade, you will close your position once you place an order, and you will feel guilty once you close your position. When you wake up from a dream at night, you will ask yourself: There are so many professions in the world, why did you choose this one?

I asked Lao Zhang how he survived, and Lao Zhang told me that fortunately he received guidance from an elder in the futures industry in Hong Kong, otherwise he might have left the market. The elder suggested to Lao Zhang: Don’t read or operate the market for the time being, and stay away from futures. When you want to read the market, just take a look. If you don’t want to, don’t look. At that time, online chatting was becoming popular, so Lao Zhang turned on his computer and went straight to the chat room every day at work, chatting happily with a group of girls online. Gradually, I forgot about the bad things in futures and saw hope again. I didn't look at the board for a while and felt that I missed it again. So during the chat, Lao Zhang glanced at the board from time to time and gradually regained his previous feeling of playing. After a period of adjustment, Lao Zhang decided to return to the futures market. Lao Zhang returned to the futures market more mature and steady than before, and seemed to have seen through everything.

The third level is "the way of the futures market is very Tao". It is impossible for most people to completely reach this level, which is determined by the laws of the market. I asked Lao Zhang if he had ever reached this level. He smiled and replied that there was a period of time when he vaguely felt like he had reached this level. During that time, making orders was very smooth, but most of the time he was still on the edge of this level. zone. There is no limit to the ups and downs, but there is no end to learning. This realm will always be the highest goal pursued by us futures people.