As the saying goes: If there is a way but no technique, the technique can still be sought; if there is a technique but no technique, the technique will stop there.
In trading, the importance of technique is at most 30%, and the importance of Tao is 70%. If you want to make stable profits, technology is only the first level, the second level is fund management, the third level is trading philosophy, and the fourth level is self-cultivation (discipline, mentality). The first two levels are the level of art and can be learned; the last two levels are the level of Tao and need to be cultivated by oneself. Just like the moves and internal skills in martial arts novels, a top master like Zhang Sanfeng is more powerful with a fire-burning stick than you are with a Heavenly Sword.
However, there are also some people who have not learned the basic theory well and do not have a deep understanding of the market. They talk about their mentality every day, but they have too much thinking. Regarding the four levels mentioned above, in terms of importance, technology accounts for 10%, fund management accounts for 20%, trading philosophy accounts for 20%, and personal cultivation accounts for 50%. But technology is 1, and everything else is 0 at the end. No matter how many 0s there are without 1, they are meaningless. Without the following 0, you are just a 1, no different from thousands of other retail investors in the market. If you learn "Thirteen Moves for Doubling" well, you will be able to defeat others, and market trading is ultimately about people themselves, that is, whether you can defeat yourself.
A good set of concepts and methods can be learned in three days, but it is easy to learn but difficult to master. Because human nature cannot be changed in 3 days! A good method requires time to be verified through the accumulation of experience. One minute on stage and three years off stage, Wang Xizhi can write a masterpiece of calligraphy in three minutes, but that is the concentrated essence of eighteen cylinders of ink and decades of skill. Training can only enrich investors' thinking in theory and methods, strengthen investors' understanding of the market, shorten investors' time to success, and save investors from taking some detours. Training under the guidance of correct methods can reduce unnecessary losses.
Investment is an art that combines theory with practice. The key factor is to undergo training, learn the correct methods, and continuously train your actual combat ability and reflection ability through real trading operations, so that you can improve your trading level. A journey of a thousand miles begins with a single step. The journey of learning to invest is not about how far you are from your goal, but how far you are willing to walk every day.
There are always some people in the market who constantly emphasize how important mentality is. They think that a good mentality means enduring the torture of the market like a masochist after a loss, and then becoming a steel through endurance. This is just a mentality that uses the complexity of the market as an excuse to deceive oneself and others, pretending not to know how to understand and leaving the blame for one's own ignorance to the word "mentality".
The trend you see is not the market trend. The trend you see is your trend. Your trend is not your trend. Your trend is your greed, anger, stupidity, suspicion, and greed. Crazy, conceited, and doubtful things are not your greed, aversion, stupidity, conceitedness, and doubt. They are greed, anger, stupidity, arrogance, and doubt. Only by overcoming your greed, anger, ignorance, pride and doubt can you be qualified to say you have defeated the market. However, it is not the ultimate realization that this is the case. This is called greed, anger, ignorance, pride, and doubt. Buddhism says: Seeing all forms and non-appearances, one can see the Tathagata. All appearances are false, and appearances are born from falsehood. Therefore, the ultimate non-dual method should be like this: non-appearance, not non-appearance, neither greed, anger, ignorance, slowness and doubt, nor non-greed, anger, ignorance, slowness and doubt.
The art of trading is within trading, and the way of trading is outside of trading. These two aspects of internal and external training cannot be neglected. Anyone who pursues hard without stable profits must have neglected one aspect.
The above mentioned four major components of stable profitability, but they are not isolated and have a logical relationship. Discipline is the most important for affecting the quality of trading results, mentality is the most important for affecting the thoroughness of execution of discipline, technology is the most important for affecting the quality of mentality, and fund management is the most important for affecting the performance of technology. Most importantly, the design of the money management plan is based on the balance between technical odds and winning rate. It's very confusing, but there is no way. This is the most rigorous expression in simplicity. Money management has said before: First, losing all your investment money will not affect your normal life.
The so-called people with good skills are bold, which means people with good skills, who understand capital management and have the correct trading concept can understand the trend well, and their mentality naturally shows that they are calm and unhurried.
The following articles will be developed from four aspects:
1. Technical article "Thirteen Moves for Doubling": Illustrations and texts will show you the usage and precautions of the thirteen moves one by one.
2. Fund Management: Introducing six fund management techniques that most people in the market have never heard of.
3. Trading Concepts: By interpreting the traditional cultural wisdom of "The Analects" and "The Art of War", everyone can gain insight into the laws of heaven and earth, and master the right time, place, and people.
4. Personal cultivation: Subdue your mind through meditation, work hard to get rid of greed, anger, and ignorance, and cultivate precepts, concentration, and wisdom without any ignorance or entanglement.
Please read more Buddhist scriptures, Confucian classics, art of war, etc. in the blog when you have time.
Practicing Buddhist meditation is to cultivate your own mind, which is an indispensable quality for becoming a top trader. Practicing Buddhist meditation is the most effective and convenient way. Studying Confucian classics is to enable you to have an overall view and philosophical thinking. As the saying goes, "Half of the Analects rules the world." It wouldn't be a piece of cake to make a transaction with it. Learning the art of war is more about integrating tactical thinking into transactions, which is very practical.
That’s all, making stable profits is not a simple matter. The greatest investment in the world is investing in yourself, and coming to me is the first step to success. All your questions are no questions here, all your confusions are answered here.