The essence of trading is largely related to market behavior and trading psychology. The market consists of the behaviors of numerous participants, which reflect the psychological state and decision-making processes of market participants. For example, George Soros once said, 'The market is like a battlefield; mindset determines victory or defeat.' This statement emphasizes the importance of a trader's mindset for trading outcomes. Additionally, Benjamin Graham pointed out, 'The market is always right; the only thing wrong is your viewpoint.' This indicates that traders need to respect the market rather than try to fight against it.
Money Management and Risk Management
Money management and risk management are key factors for trading success. John Paulson once said, 'The key to success is risk management.' This statement emphasizes the importance of effectively managing risk in trading. Traders need to develop reasonable money management strategies to ensure the safety of capital in the face of market fluctuations.
Trading Skills and Strategies
Trading skills and strategies are also part of the essence of trading. Dr. Alexander Elder mentioned in his book (Trading for a Living) that the three pillars of trading are psychology, trading skills, and money management. Traders need to continually learn and apply effective trading skills while maintaining a good psychological state and money management ability.
Philosophical Aspects of Trading
The philosophical aspects of trading involve understanding and attitude toward trading. The thoughts in Laozi's Tao Te Ching can serve as trading guidelines, such as 'Achieving relatively infinite known trading results with a limited number of trades, and responding to the ever-changing price fluctuations with unchanging trading principles.' This philosophical thought emphasizes that traders need to have a long-term vision and stable trading principles.
| George Soros | The market is like a battlefield; mindset determines victory or defeat. |
| Richard Dennis | Don't predict the market; follow the market. |
| John Templeton | The biggest risk in the market is not taking action. |
| William Delbrant | Trading is not gambling; it is science. |
| Benjamin Graham | The market is always right; the only thing wrong is your viewpoint. |
| Robert Cook | Trading is like marriage; it requires patience and wisdom. |
| John Paulson | The key to success is risk management. |
| George Schwartz | The market always has patterns; we just often ignore them. |
| James Hilton | Traders should be like hunters, patiently waiting for the best opportunity. |
| Robert Myers | The most difficult part of futures trading is controlling one's emotions. |