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Must-Read for Beginners! Core Insights from Top Trading Experts

The financial market seems to offer limitless opportunities, but very few can achieve long-term, stable profits. Trading is not only a contest of skills and information but also a profound struggle of human nature and cognition. Here are 5 key insights from top trading experts:

1. Give Up Precise Predictions and Embrace Probabilistic Thinking
Don't treat trading as a prediction game. Fundamental factors are difficult to measure in the short term, and technical analysis can easily mislead trading. The essence of the market is a manifestation of probability; every trade carries a risk of failure. Experts free themselves from the obsession of “having to be right” and make rational decisions.

2. Rationally Control Risks and Avoid Being Driven by Emotions
95% of trading mistakes stem from negative emotions like fear. Top traders quantify risks, view small losses as a normal cost of their trading system, and recognize that rational cognition is key to profitability.

3. Discipline and Flexibility Coexist
Strictly adhere to trading discipline, such as entering trades based on signals, decisively cutting losses, and precisely managing positions; while also remaining flexible to adjust expectations based on market changes. Understand the core of trend-following strategies and assess the probability of trend continuation rather than predicting turning points.

4. Build a Fault-Tolerant Trading System
Like professional gamblers who focus on long-term probabilities, top traders make decisions with a probabilistic mindset, freeing themselves from the mentality of “proving themselves.” Establish a “fault-tolerant” trading framework that employs various strategies to cope with different market conditions.

5. Trading is a Form of Practice
The highest realm of trading is to see the market as a dojo for enhancing cognition. Profit and loss become less important, serving instead as opportunities for reflection and improvement. Transform mistakes into experiences for self-breakthrough.

Core Points: Establish a Probabilistic Advantage, Strict Risk Management, Follow Trends, Maintain Rationality. When these principles become instinctual, one can grasp the rhythm of profitability amidst market fluctuations.