What problems do you need to solve to achieve stable profits in trading?
1. Realize that the market is uncertain, and trends are unpredictable. Do not spend too much energy on the entry phase; entering is merely the beginning of trial and error. Only when you truly recognize this can you consider yourself entering the door of speculative trading.
2. After entering the market, you need to be able to 'cut losses short and let profits run.' When a position incurs a loss and reaches your stop-loss point, can you always stop the loss in time? After making a profit, can you patiently hold on and let the profits run, even if you see unrealized gains diminish or even turn into losses?
3. You also need a good money management rule that allows you to trade with low risk, protecting your account while waiting for your opportunity.
4. Do not overly optimize your trading system. Recognize that there is no perfect trading system; there is only a system that best fits your risk preferences.
5. Consistent execution. Once you have established a trading system, the rest is to execute your trading rules consistently. Only by adhering to this consistent execution can your trading system continuously deliver its advantages over the long term.
A trader, no matter how long he has been trading or how many years he has experienced losses, as long as there is once in a while a chance to accurately capture a major trend from the early stages and hold firmly until the trend ends.
Once such a trader successfully seizes such an opportunity and ultimately gains significant profits, his trading experience and mindset will undergo tremendous enhancement and change, as if he has experienced a sublimation and baptism of the mind and body.
To successfully grasp such major trends, traders need to possess a firm mindset, strong willpower, and accurate judgment. These qualities are not achieved overnight but require continuous honing and accumulation by traders over a long time.
Sometimes, some traders may feel that they can master trading skills through learning and reading, but real trading experience often comes from exploration and reflection in practice.
The mindset of trading and the status of the account often fluctuate like a pendulum, with ups and downs. When the account is at a profit peak, do not be overly complacent and lose your sense of reality; when the account incurs losses, do not become too dejected and disheartened.
How long does it typically take for traders to achieve stable profits?
Everyone has different levels of understanding and requires different amounts of time. The process of understanding trading is nothing more than reading thousands of books, traveling thousands of miles, meeting countless people, and being guided by famous teachers.
