Is profit the only criterion for measuring the level of trading?

The most complete transaction story
emily12

"Making money = profitability?"

dachshund

If you are not profitable now, if you have already started to make a profit, but you always make a profit and a loss, then please read this article several times. This is a painstaking summary of the trading history of a futures speculator over the years, and it also reveals the secret of being truly invincible in the futures market. Its core is to lightly store, take advantage of the trend, accumulate, increase positions, stop losses, hold positions, and Mingde!

1. Profitability

The so-called fundamental or technical analysis and all kinds of analysis are only used for verification, not for serious prediction.

Never believe in predictions (in my opinion, don’t guess, scientific predictions or conjectures are still acceptable) - because predictions have too many subjective biases, because predictions are illusory futures, because predictions are the concentration of fear, because predictions are actually It means uncertainty, so don't trust any analysis. The price movement of either up or down stipulates that you should learn the trading behavior of either long or short (this sentence is a bit arbitrary, the price movement method must first determine the period, in a certain time period we say the price movement method: 1. In the case of a rising or falling trend, it is rising-adjusting-rising to a new high. Or falling-adjusting-falling to a new low. 2. In the case of a turnaround, rising-adjusting-rising cannot make a new high-turning to a cycle. A new low will turn into a downward trend. Or fall-adjustment-fall cannot make a new low and turn to a new high within the cycle, then it will turn into an upward trend.)

2. The virtue of inaction and inaction

can you drive? Won't! can you walk meeting! That's fine. If you want to reach a certain destination, you must first find the road, and then drive or step on it, instead of walking and bumping around. Remember, it is not you who open the road and reach the goal by accident. The land, but you see the existing road, and then walk along the road to reach the destination (a good analogy). Placing an order is to see the market first, and then follow the market - here is not daring to be the first in the world, not predicting first, nor fantasizing first, you have to follow and then move; and then let the market lead you for a while distance, you will make a profit.

How far can the market go? have no idea. How long does it take for the market to pull back? do not know either! Just wait (on point). That way you make fewer mistakes. If you start to predict the price distance or the length of time, or lose your patience, worry about losing profits, and leave the market prematurely, it means that you have left the road, then you will fall into the roadside trap. For a moment, you will make mistakes, and you will make big mistakes (this is the key, please keep it in mind repeatedly).

3. About holding positions

Holding a position has nothing to do with time; it is rarely related to the distance of price movement. If there is, it depends on whether the boundary of price movement has been reached or is ready to cross. The boundary of price movement is actually easy to identify. In the graph of more than 15 minutes, the high and low points of yesterday, the high and low points of the previous few days, the boundaries of the large moving average, etc., are almost marked. And doubts, K-line movement is so simple, but you make it complicated, and at the same time make yourself dizzy, how can there be no loss?

Holding positions has nothing to do with your patience, personal emotions, including your psychological activities such as expectations or doubts! If so, you've already started losing money.

Think hard about how you drive or walk. If you don’t know how to think, then go on the road and think about the relationship between your legs, the road and the destination while walking. Striding your legs is your trading behavior; the road is the path and direction of price movement; the destination is the boundary of price movement and the end point of your trading profit (it should be noted here that the destination in life is always in advance). I know, but it is best not to find out the destination of the price movement in advance, just follow it). Walk for a while, and slowly imagine who comes first, and who dictates whose behavior.

Don't rush and take a premature step, and don't worry about being the wolf and the tiger. Price movement has a path process - trend. The trend itself is a combination of distance and time extension, but this is a dynamic process. The size of the trend (to determine the period of time in which week) cannot be pre-defined or analyzed and judged prematurely by time and price difference. At least, most of the market is like this. Moreover, traders do not need to prejudge. In fact, the trade that follows is the correct trade. And holding positions has nothing to do with price difference and time difference. If you are in tune with the market, don’t you make a profit? Don’t you still have to make a profit in US dollars and how long you have to hold a position to be reconciled? That is simply impossible and unnecessary. Don't care about the trend and the size of the profit, just follow the market in harmony. The simplicity of being profitable is simply following the price movement instead of fighting it. The market trend has nothing to do with you. If you fight against him, will he ignore you? Therefore, if you make a mistake, you should get used to turning around easily and simply. But at this time, most people have a lot of worries in their hearts and a lot of weight in their bodies, they can't turn around, and even stumble and hate.

4. Simple your actions

Read books uninterruptedly (don't read contradictory books), don't stop your thinking, don't leave your action practice, in your life, familiarize yourself with the thoughts of Taoism and Buddhism, keep quiet and do nothing, abandon desires and thoughts, and use these Philosophical common sense guides your thinking and behavior faithfully, keeping your mind pure and free. Because those things that are discarded have nothing to do with profit and loss, and have nothing to do with your happiness index, but too many people are pursuing these things and not relaxing, which is really self-defeating.

Lao Tzu said, "Gai heard that those who are good at holding on to living things will not protect their lives from tigers...", which means that people who are good at preserving their lives will not easily chop rhinos or tigers while walking in the mountains... A trader Don't take risks lightly, don't take heavy positions or rush into the market driven by desire, and don't leave the market prematurely because of fear and doubt. Honestly control the position, honestly look at the market and then follow-up trading, this is the original way of doing trading. If you trade with expectations or doubts because of thoughts or bad psychological activities, it will be out of the essence of trading.

Now there are studies on "trading psychology", but those are all talking about the bad psychological activities of people who trade, and the various processes that affect correct trading behavior. In fact, if you are a mature trader, the essence of profit and loss has nothing to do with mental activities at all. But in this world, few people can see this. At most, they can see that the process of psychological activities determines the way people behave, and try their best to control their psychological state and trading method principles. This is the typical state of mind of an immature trader. But actually, you don't have to work so hard. As long as you give up your thoughts, keep your behavior simple, take light positions proportionally, and do a few actions to follow the price trend. The process of holding positions will make profits vary with the price movement, and this is trading. How can there be so much thought in it? Thoughts are inside, but still controlled by these bad thoughts, restless, restless, and rushing into heavy positions, it is a net loss, isn't it just asking for trouble?

5. Correct understanding of transactions

Traders must understand the transaction correctly. It should be clear that holding positions and trading are two different things. Trading is a verb, if it is an action, it is often done intentionally and frequently. The vast majority of people in the world feel uncomfortable if they are not trading, and they don’t appear to be capable traders if they don’t enter and exit frequently. similarly.

Holding positions is doing nothing, and the profit figures of his positions are changing with the market trend all the time, but his heart and hands never worry too much or change his positions easily. When the trend is completed, the price movement pattern will tell him that he should pocket the profits. At this time, he will naturally harvest his warehouse receipts. As for whether, how, and when to enter the market for the next order, that is It depends on the trend of the price itself and the arrangement of his work and leisure time, and profit opportunities are always everywhere. But it is strange to say that investors or traders are always unable to achieve such a simple profit method. What is the reason? I’m afraid it’s still like what Lao Tzu said, the real winners are in the quietness and softness of “the great wisdom is like a fool”, while those “strivers” who have “the pleasure of trading” are in the tossing of the “great foolishness like wisdom”. middle.

The basic idea in the theory of yin and yang or dialectics is that when you stay still, everything in the world is changing, so there is no need for you to move too much. If you want to move, you also follow the movement of the surrounding world. This is called responding or following the movement. . Because the achievement of anything is the product of the mutual movement of various conditions in the surrounding world, rather than the subjective intention of people, so individuals must wait for changes or adapt to changes. The relationship between K-line movement and trader behavior is even more so. Braking from stillness, making movement from stillness, standing between passive and active, standing against the weak, and being in the static female is the real proactive way. This is the way we do everything.

6. Emphasis on accumulation

Traders should also pay attention to the significance of accumulation. "A thousand miles can be reached without accumulating steps", "gathering sand into a tower" and so on are all saying that the cumulative result will be huge. The same is true in financial transactions. The market trend is formed by the superimposition of each main wave push and secondary wave pullback. Don’t feel that there is meaning in entering and exiting the market just because of each fluctuation. In fact, what makes sense is that you hold positions without Moves, at most, light positions and increased positions after the trend resumes, rather than repeated mistakes caused by your speculative psychological fluctuations. The big trend is superimposed by several small trends. You must wait patiently to hold positions and hold the big trend. Similarly, if you do too much in and out of the market, you will make more mistakes, and your accumulated losses The amount will be huge, and if you want to get it back, you also need to increase your ability to double.

On the positive side, the great significance of accumulation lies in the compound interest of your warehouse receipt profits. Compound interest has great energy, but it also comes from spiritual freedom and inaction. Just imagine, you are not taking heavy positions in order to get rich quickly, taking risks and flukes, but you can take light positions every time and follow the market for a long time, then with the rolling of such price differences and the increase in the number of accumulations, your book profits will It is also constantly accumulating and enlarging. When you encounter a clear market, you can increase your position and continue to follow. Through the number of positions following the trend and the price difference rolling and the accumulation of time, you can own even if you always have a proportional light position. Very huge gain. On the contrary, those who want to get rich-style trading positions, rush into heavy positions, frequently fight short, eager for quick success, only know the immediate benefits, and do not know that the various specific conditions behind will change at any time, but they themselves have no ability to deal with it Traders, if you are not in front of your eyes, you will follow up. Sooner or later, you will lose a lot like the unbearable consequences of a fast car speeding or even running a red light due to luck. At that time, it will be too late for you to learn from the pain.

Seven, more easy will be more difficult, haste makes waste

In the process of the development of anything, there are bound to be decisions and influences of many successive conditions. If it is fast, it will be harmful, and if it is slow, it will be beneficial. So the slowest accumulation is your fastest way to make money, and you must believe that the power of compound interest is huge. Compound interest, sometimes it is an algebraic level of growth, and sometimes it is a geometric level of development. The energy is endless, like bean sprouts on top of a rock, which is astonishing. Allow yourself the patience to see this great gain. The huge amount of wealth obtained with time and accumulated expansion, due to the different starting points in thinking and reality, will allow you to truly feel the original huge amount of wealth when the real huge harvest comes. Owning took some time, but it's really fast, and it's safe. Therefore, the fastest and greatest way to own wealth is to slowly accumulate the profits of such safe positions one after another, and there is no other way.

Find a few moving averages, they will form the direction and path of price movement, and they are often the guardrail of the path, then draw a horizontal line, at most look at the shape of the K-line combination, and then follow the K-line, that's it (put the transaction The system is established, this is the truth of the transaction, and the truth of making money). This is not for you to engage in advanced technical indicators or trading methods, but for you to have some information or confidence to follow market trends. And in the final analysis, this is still a kind of following-following the high-probability moving average law or the general trend of the K-line combination form, and only after these indicators and the K-line direction are formed, can you enter and exit the market, rather than subjectively predicting in advance Judging or imposing subjective will on transactions. If you are a mature person, you don't need any indicators at all, and you can operate on bare disk, because you can see the market up and down, just follow it.

As for the fundamentals, only boring people will read it. So, trading is as simple as that. If you have to find a clever method, it is to return to the basics and purify your soul. You need to treat yourself as an "idiot" (this is a kind of cultivation, a state, and ordinary people really can't be an "idiot"!), emptiness Do nothing, don't have a single thought, don't predict, don't have anxiety, let the direction of price movement tell you how to follow him either up or down. Because where is the road, what is the direction, and how far is the destination, you have never chosen by yourself, let alone predicted by you like a fairy. Your journey at this moment has always been told, chosen, and followed. If you have already walked on this road, then raise your head and enjoy the scenery on the side of the road or in the distance, don't think about your feet.

In a word, the "way" of profit is your follow-up "being profitable" in "everything is empty".

People pay attention to the word "ability" in everything they do. Some people have the ability to calculate, so they study mathematics; He has a soft spot for power, and so on, which is the basis for him to do a good job.

8. How to make long-term stable profits

In financial transactions, one can always make a profit. Does he have the ability to make a profit?

If you are a financial tycoon, an investment bank, or a combination of investment banks, and you can control the market and control the situation, you are undoubtedly capable. In addition to your ability to marry politics and have excellent economic wisdom, you must There will also be strong capital strength for you to play.

But the problem is, you are just an ordinary trader, an investor with only a few thousand dollars, or at most a few million dollars. So you don't have any abilities.

Someone asked, you have said so much, you said you can make a profit, then you are not a financial predator, what are you doing here?

I will now answer your question.

I'm always making a profit, but I'm not a financial predator, and I don't have any so-called profitability.

The first point, I have already mentioned it above, now let’s talk about the strange question of the second point. Financial transactions can be truly profitable, and it is a long-term stable profit, which actually has nothing to do with the trader himself. If you go with the trend, you can make a profit, because the market is making you a profit; if you can’t make a profit, it’s because you are holding a position against the trend, and the market is not making you a profit.

The way to make a profit is that you can follow the trend without moving your position. You can go with the trend while holding the position, it is the power of your cultivation that is at work, not your ability to make profits in trading.

If you make a profit, it is definitely not because of your credit or trading ability, but because your "Tao" nature is at work.

Some people say that I have the ability of technical analysis, I have the knowledge of fundamental judgment, and I can predict the market, these are all jokes.

Technical analysis is a summary of high-probability events. I admit that it is useful for judging future market trends, but first, most of them are summed up after the fact. Second, technical analysis is mostly limited to a certain price market stage. In fact, There is no need to pay more attention to the impact of local movements on the overall trend.

Fundamental forecasting, I believe your ability is still far behind. Even if it can be predicted, it is only ambiguous.

So, trading is just following the trend.

9. Are plans, principles, and strategies important?

My answer is that I don't have these things, and I never pay attention to them. I just open positions lightly, set a stop loss, follow the price, and continue to lighten and increase positions after profits, that's all; if there must be a plan, I only have these simple actions, but in fact it is not a principle of method, you are Do margin leveraged trading, can you not take a light position, can you not stop loss? So I don't have any principled strategy.

All in all, profit has nothing to do with you, don't brag about yourself, it's just a gift from the market. It's not that you have the ability to make money. If you are struggling in the trading market, or looking for a way to win, from now on, you should know that this will not help your trading at all.

But if you are always losing money, it is really about you. You are always doubting, you are always expecting, you are always fearing, you are always analyzing, you are always planning, and you are always stipulating yourself to abide by trading principles , when in reality, you are always losing money.

The law of trading lies in impossibility. Stay out of the market, build a position in the trend, wake up to the truth of enlightenment, and be good at making profits. The world is free and unrestrained, the world is self-contained, knowing the beginning of the action and knowing the end, the market is self-interested and I am self-interested, and I am self-interested but I am outside the market.

Putting yourself in the middle of a deal doesn't do you any good. You have to try to put yourself out of the transaction, so that you can empty yourself, so that the transaction has nothing to do with you. Because profit is determined by the market, not your decision. Your position direction, if it matches the price movement, he will win. If not, then change it. The market is the leader. You are just an outsider. Do you put your heart in the transaction? In the final analysis, whether you make a profit or not has nothing to do with you. Therefore, following the trend is what should be done, and it is natural. I don’t take the initiative, I have to follow the trend or something. I just need to see his movement and gently follow the movement. Then I place an order and go to sleep. The market Automatic and I am selfish. This is the Tao.

After making a profit, don’t feel that you have any ability. In fact, the profit is given to you by the market. You don’t have any energy or ability in it, so you don’t have any so-called profitability in it. If you can make money, don't feel that you are great, you are awesome. Just like when the weather is good and the common people have food to eat, the king of that country feels that he is very awesome. It is his power that makes the common people have enough food and clothing. Isn’t this a self-deception? Just like the air makes all things grow, you feel that your own ability makes the air work, isn't this ignorance? Therefore, profit is just going along the way, and going along the way is virtue. The "Tao" and "virtue" of the "Tao Te Ching" need to be clarified. Laozi thousands of years ago can see it so clearly. After thousands of years, don't you think about it seriously? Conversely, if you can't make a profit, it's because you take yourself too seriously, devote yourself to the transaction, work hard, and lose more and more, because it's all about self-assessment. Try to let go of yourself and cultivate your own thoughts. Only in this way can we improve.

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Last updated: 09/08/2023 04:13

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