18
2024/07
Discover the trading pattern to succeed
Trading is fundamentally about identifying patterns and following them. Your ability to make money and the extent of your earnings depend largely on market conditions.
The key is to understand these patterns and trade accordingly. Since everyone’s cognitive abilities vary, what they perceive and react to market feedback will also differ, leading to different outcomes.
Ups and downs are a normal part of trading. There will be times when you experience consecutive gains with unexpected returns and times when you face successive losses. This is all part of the process. It’s important not to become overly excited by gains or disheartened by losses.
As long as the core principles of your trading model remain intact, the model continues to be profitable, the rules remain consistent, and the market hasn’t undergone significant changes, everything is under control.
If your model operates as expected without deviation, it will eventually be profitable. Occasional, uncontrollable deviations won’t impact the overall outcome.
Approach market fluctuations with a calm mind, maintaining inner peace. Don’t let short-term gains or losses disrupt your mindset and lead to irrational decisions.
Always have a humble and respectful attitude towards the market. This respect is rewarded when you adhere to principles and standards. If these standards align with market laws and remain effective, follow them, and the results will naturally follow.
All markets follow inherent cycles: periods of rise and fall, where extremes lead to reversals. Whether dealing with individual stocks or trading models, a decline is inevitable after a continuous surge; similarly, a rise will follow after significant decreases.
The same applies to trading models: after consecutive profits, drawdowns occur, and after successive losses, profits follow. This cyclical nature is inescapable unless you can break the cycle by only trading at key points and avoiding drawdown phases, leading to fewer fluctuations and more stable trading.
To succeed in trading, you need three key character traits:
- Focus:Choose a direction, commit wholeheartedly, and overcome all difficulties.
- Diligence:Work harder than anyone else to learn and accumulate knowledge, breaking cognitive barriers. This process might take 5-10 years or longer. Hard work pays off, and success will come naturally when the time is right.
- Resilience:Develop a thick skin and never give up in the face of setbacks. Even in desperate situations, maintain your determination. When you feel defeated, a new path can emerge; perseverance leads to survival in adversity.
Truly upholding these traits is challenging. Initially, you might learn from others’ successes and theoretical methods. You may understand them but need help to apply them. This indicates only a superficial understanding, not a deep, personal comprehension.
It’s like knowing many principles but still living poorly. Real understanding comes from personal experience and awakening through hardships. Without this, others’ experiences will remain external, unable to merge with your true self.
However, understanding and learning from these methods and experiences are necessary. With accumulated knowledge and a solid foundation, you can transform these into your insights when your destined trial arrives.
Merging them with your true self, breaking through obstacles, and achieving enlightenment, you can carve out your path and find success.
