The key to winning every battle in trading: don’t fight if you can’t win the battle

"Sun Tzu's Art of War Xing Pian"

"In the past, those who were good fighters were invincible first, and waited for the enemy to be victorious. Invincible lies in oneself, and victory lies in the enemy."

When doing transactions, the first thing to think about is not how much you can make, but to ensure that you try not to lose as much as possible. Earning more and earning less depends on God's will, and losing more depends on ability.

What we see in the market is whether it is right or wrong. The important thing is whether it can be done, and if you make a mistake, you can correct it in time. Timely stop loss is the foundation of a foothold. If you want to survive, you must first learn to "cut meat".

Trading is like a Go player or a boxer. We only need to respond subconsciously. As long as we remember the word "response", the market is actually very simple and not complicated at all. Enter the market if it meets the trading pattern, hold it if it is still rising, don’t do it if it fluctuates, avoid it when the market is falling, or go short. If you just deal with it in your heart, how to deal with the positions in your hands will not be complicated.

In the process of trading, we don't have to blindly pursue short-term profits. We only need to master the trading frequency, position, control the stop loss, and make stable profits every month. Compound interest can create super profits for us.

From the perspective of trading methods, it can be summarized in ten words: go against the trend, control positions, stop losses, and expand profits. From the perspective of traders, it can be summed up in eight words: objective, patient, concise, and consistent. Whether it is trading skills or position management, these off-the-shelf learnable things are not the most important, the most important thing is the game of mind: have we defeated ourselves? Trading is also a game of vision. Do you play with flowers and plants at the foot of the mountain, or enjoy the infinite scenery on the top of the mountain? There is no greatest, no talent can be born, success is due to your "purity", failure is because you think too much! .

Of course, it is impossible for us to have great fruits and flowers at the same time, it is impossible to have spring flowers and autumn moons at the same time, and it is impossible for us to earn all the money. So we have to learn to weigh the pros and cons, learn to give up something, and only then can we get important things. When our team formed a team to do transactions just now, we tried all currency pairs, gold and silver, and stock indexes of various countries, but after a long period of trading, we found that we lost more and earned less. Now that we have given up most of the commodities and focused on trading the pound currency pair, we have begun to realize the normal output of the trading strategy and start making steady profits.

Therefore, traders must be very, very self-disciplined, insist on doing simple things to the extreme, and miracles will be held by those who work hard. In any standardized trading system, discipline is the most important thing, otherwise all plans are empty talk. Only by following discipline can we complete the transaction objectively without being affected by mentality. This is also the lesson and summary of our years of painstaking efforts in trading.

Finally, I wish all readers who read this article can turn losses into profits, start to output trading strategies normally, start to make steady profits, and fight every "battle" with peace of mind.