Confucius and the perception of trading

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Confucius was a great thinker, statesman, and educator in ancient China, and was even revered as a sage of Confucius by later generations. His thoughts had a profound impact on China and the world. Today, more than two thousand years later, we can still be inspired and inspired by his thoughts.

The origin of the modern financial industry is only about 400 years since Amsterdam built the world's first stock exchange in 1611. For traders in the modern financial market, we can learn from the two What inspiration did the sages thousands of years ago get?

The Master said: "When I am ten, I am determined to learn. At thirty, I stand upright. At forty, I am not confused. At fifty, I know the destiny. At sixty, my ears are compliant. At seventy, I follow my heart's desire and do not exceed the rules."

This sentence is a portrayal of Confucius' own life. This process is a process in which he gradually improved his ideological realm as he grew older. The process of our trading is also a process of gradually improving the realm of trading thoughts as our trading age grows.

It is said that all things are connected. From this sentence, I have experienced some trading insights, which correspond to the six stages of trading, and share with you:

1. The first stage - "I have five out of ten and I am determined to learn"

When most of us first entered the market, we felt that trading was just about buying and selling. There was nothing difficult about it. Usually, we rushed into the market without having a comprehensive understanding of the market.

However, the market doesn’t seem to be so reasonable. After we were bruised and swollen, and we were taught to obey, we realized that if we want to do a good job in trading, we still need to learn trading-related knowledge. At this time, we are “willing to learn”.

2. The second stage - "Stand at Thirty"

After "willing to learn", we will learn by reading various books, visiting forums, joining groups, etc., but we often feel confused and lack confidence. Changing course, or being at a loss, can only grope forward in a fog.

After a few years, we have gradually built our own trading system through continuous learning and practice. At this time, we no longer blindly follow the operation suggestions of others or "big guys" as before. We have our own independent opinions on the market.

Of course, we will also refer to other people's views, but we think more about the logic of their views, and we only trade according to our own system. At this time, we are "standing" in trading.

Three, the third stage - "forty without confusion"

After "Li", although we only trade according to our own system, the market is like a girl's mind, elusive, and often makes us dizzy, and the account is also ups and downs; we can't fully grasp the pulse of the market , still feel a little confused at times.

After a while, we finally understand that each trading method has a period of adapting to the market, which means that each method has a period of not adapting to the market. The trend system is afraid of shocks, and the shock system is afraid of trends ; wanting to wipe out market fluctuations is tantamount to nonsense.

The market is still the same market. When we use different thinking to understand her, our understanding of the market will be different. We are no longer obsessed with not being able to fully grasp the pulse of the market. We understand the trade-offs and the wisdom of "weak water is three thousand, only take one scoop". At this time, we are "not confused" about transactions.

4. The fourth stage - "Fifty to Know the Destiny"

After "no confusion", we have a deep understanding of trading, and understand that market fluctuations have their own rhythm. We only need to abide by our own entry and exit rules for trading.

However, in a certain period of time, when our trading system does not adapt to the market environment and loses money one after another, we may still feel anxious and irritable, always thinking about maximizing profits, and will try our best to optimize the system to perfection.

Gradually, we realized that everything has two sides. If you choose one side, you have to give up the other side. Any trading system also has advantages and disadvantages, and there is no perfect trading system. The only thing we can control is stop loss, and the profit is given by the market, which is beyond our control. Every time you enter the market, whether you can make a profit in the end, or how much you can make a profit, is determined by the market. We can only trade according to the system, and we can only "resign ourselves to fate" after entering the market.

As long as the risks are well controlled and the trading rules are followed, the rest will be left to the market. At this time, we have entered the "Knowing the Mandate of Heaven".

Five, the fifth stage - "sixty and ears are smooth"

After "Knowing the Destiny", our trading system has become very mature, and its application is well-founded and well-organized. However, although the risk is well controlled for the unexpected sharp rise and fall of the market, there are still fluctuations in the mind, and even a bit of a pity for missing the market.

Slowly, we gradually became calm, no matter how the market goes, we are no longer entangled, we understand that we can only obtain profits within our own circle of competence, and we will no longer be moved by the market that is not within our circle of competence, "let him southeast Northwest wind, I stand still."

Exchange trading views or ideas with others, if others disagree, we will no longer argue, but explain a little bit, no longer want to prove who is right and who is wrong, but be very indifferent, after all, there is no pure right, There is nothing completely wrong, as long as it suits you, it is the best.

At this time, whether it is for the market or communication, we are "sound".

Sixth, the sixth stage - "at seventy, do what you want, do not exceed the rules"

After "Ear Shun", we have a very deep understanding of trading. However, after all, our human nature is determined by the DNA after 3.8 billion years of biological evolution. Sometimes, we still occasionally make mistakes due to the weakness of human nature. Just some small mistakes.

A few years later, after the continuous baptism of the market and the continuous strengthening of system rules, we have been in perfect harmony with our own system, and we are handy in trading. The same wave of market will not only trade with the trend, but occasionally enter the market at the resistance level to make a callback when the interest comes, but this kind of operation will reduce the position, and it will also fast in and fast out, and will not violate the trading rules.

If the trading system is compared to a sword, at this time we will be completely "integrated with the sword" with the system, that is, "do whatever you want without breaking the rules."

The six stages of trading are like a condensed life. When we grow in trading, our outlook on life will be sublimated. At the same time, we will truly experience the joy of trading and growth!

Finally, I would like to ask you, what stage do you think you are in now? Or what different inspirations and insights did the portrayal of Confucius' life give you? Welcome to discuss.

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Last updated: 09/14/2023 16:14

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