I think one of our community members: let's call him Xiao Su, has a very representative story. Let's listen to how he went from trading 1000 U back then to trading 20,000 U today.
From September 2021 to early 2023: the confused period of big losses and big gains.
He joined the community in September 2021, when the community's system was not as comprehensive as it is today. I remember they were still updating the high school graduation (naked K) course. But this did not prevent him from making money. According to him, he only learned the 12 Golden K and Dow Theory from the junior high school graduation (basic) course, and also used his spare time to read the two books I recommended: (Naked K Trading Method) and (YTC), and then started trading, quickly beginning to profit.
But he is not happy at all inside. Why?
Because his equity curve does not look good at all. Yesterday he made 1000, but today he might lose 2000. It fluctuates up and down very unstably, belonging to a state of big losses and big gains.
So why did this situation occur? From today's hindsight, Xiao Su summarized a few reasons for himself.
a. Frequently changing trading systems.
At that time, as long as you finished the junior high school graduation-related courses, you could build at least three trading systems: 'Three Moving Averages Trading System,' 'Vegas Trading System,' and '123 Rule Trading System.' He used the 'Two Moving Averages Trading System' to look for trading opportunities. When he found it unsatisfactory, he immediately switched to the 'Vegas Trading System.' If that didn't work, he switched to the '123 Rule Trading System.' In simple terms, he felt that there were too few opportunities and always thought that the more skills he had, the more trading opportunities he could seize and earn more money.
Also, when the trading opportunities in the 'Three Moving Averages' trading system caused him to stop out several times in a row, he began to doubt the 'Three Moving Averages' system and then immediately switched to another system. However, he forgot that the 'Three Moving Averages' system had actually brought him many profitable opportunities in the past. This is clearly influenced by recent preferences.
b. No position management.
The second point is position management, which means not being consistent when placing orders. One time 100 RMB, the next time 200 RMB. After a few consecutive profitable trades, he felt elated and began to increase his position to 1000 RMB. As a result, one loss sent him back to square one; or after several consecutive losses of 100 RMB, he felt the next time he was bound to make money, he got impulsive and went all in against the market, hoping to recover everything at once. In the end, he went from losing a cheap car to losing an expensive one.
c. This stage is the most difficult for mindset.
Due to the above two reasons, his capital account during this stage was always fluctuating, experiencing big losses and big gains. In the end, he was very frustrated and always doubted whether he was suitable for trading or whether there was something wrong with his intelligence. He thought many times about giving up. I believe that you in front of the screen have also experienced this or are currently in this stage. Indeed, 80% of people have given up at this stage, leading to all previous efforts going to waste. I call this stage Xiao Jia's first phase: the confused period of big losses and big gains.
So how did Xiao Jia successfully cross this stage?
Early 2023 - November 2023: The confidence period with a trading system.
He made the following two adjustments based on my suggestions:
a. First, identify a trading system.
b. Reduce the position to the minimum.
Let's first talk about the first point: first identify a trading system.
By early 2023, our compulsory course (Naked K) had already been updated. Xiao Jia later learned the price action from the (Naked K) course and ultimately locked in the price action trading system from many trading systems.
Next, let's talk about the second point: reduce the position to the minimum.
I told him at that time, don't take out 100 U; that’s too much. Just 30 U. It’s less than 300 RMB, just treat it as a meal. Divide this 30 U into 30 parts, and only place 1 U each time. After all, the goal is not to make money; if it’s lost, then forget it. He ran this way for a few months, and guess what?
He actually started making stable profits without major gains or losses, and there were no significant drawdowns. The equity curve also became appealing. More importantly, his price action trading system has already gone through 2-3 complete life cycles and has become unbreakable!
What is a lifecycle? It means that whether in an uptrend, downtrend, or a non-trending trading range, this trading system has not caused him to lose much money again, which is very important. We all know that no matter how good a trading system is, it cannot capture all opportunities in all targets and all cycles in the market. Every system has its periods of success and failure.
Some trading systems can make money in an uptrend but not in a downtrend.
Some trading systems can make money in a downtrend but not in a consolidation range.
Some trading systems can make money in Bitcoin but not in gold spot.
Some trading systems can make money on a 1-hour cycle, but not on a 5-minute chart.
Some trading systems can make money last month but not this month.
So, never expect to use one trading system to conquer all cycles, all targets, or even all markets. It's impossible!
Looking at Xiao Jia's two key operations during this stage, we can easily find that the so-called three essential elements for success in the market, Xiao Su has done very well.
One: Technical management.
First, technical management: stick to one trading system, which is the 'price action' trading system. I previously shared this system in (From 0 to 1, Episode 164); the foundational win rate is guaranteed.
Two: Position management.
Next is position management, strictly controlling his capital scale according to a risk management preference of 0.5% or 1%. He even placed orders directly according to a fixed scale of 1 U, 1 U.
Three: Emotional management.
By the time technical management and position management both reached a passing grade of 60, he found that his mindset had improved a lot.
He is no longer afraid of consecutive losses because he has the foundational win rate from many trades to support him.
He is no longer anxious about missing opportunities because he knows that if there are no opportunities today, there will definitely be some tomorrow.
When making trades, he can control himself because he knows what the punishment for impulse is.
So you see, this is why I say many newcomers always feel they are not good at trading; using a bad mindset as an excuse is a sign of cowardice! All mindset issues are pretentious; poor technical management and poor position management will directly affect emotional control, and poor emotional control will further exacerbate the issues with position management.
So, I call the period from early 2023 to November 2023 for Xiao Su as his second phase: the confidence period with a trading system.
So how is Xiao Su doing today? What is he doing every day? Let's continue to look.
From November 2023 to now: the dull period of stable profits.
One day in August last year (2024), he suddenly came to me with good news, saying he not only obtained the FTMO trader program account but also had his own independent trading office. I was really happy for him; nothing makes me happier than seeing the saplings I nurtured grow strong and tall.
He now has a stable income each month, which is basically divided into two parts: one part is trading futures with his own money, which can earn him about 20,000 to 40,000 RMB a month; the other part is his FTMO trader account of 400,000 USD, from which he can earn 80% of the commissions. I guess he should also make a few thousand or tens of thousands of dollars a month! This is far better than an ordinary white-collar job. In his own words, now that he has become a professional trader, he finds trading really dull. There are not that many opportunities every day, and he only enters with limit orders, spending a lot of time waiting. So he even asked me to find him some work.
So that's the story of Xiao Su. The last phase, from November 2023 to now, I call the third phase: the dull period of stable profits. In fact, I only highlighted some important points; the complete version of the sharing lasts over half an hour. Besides what I just shared, Xiao Su also shared some common tricks he learned during trading, such as: what to do when impulsive? What to do if you can't help but watch the market? How to face losses? What to do with consecutive losses? And so on.
The above is the answer to the question of 'how to grow small funds.' Xiao Su is just one example among many of our students, but he is indeed very representative. Most others who have found the holy grail have also followed this path.
This is a classic case in the cryptocurrency circle. If you are still confused now, you might as well join my small circle!
#Strategy增持比特币 #BTC再创新高 #币安Alpha上新
