Any practice is lonely. When you successfully break through the first level, congratulations, you have already surpassed seventy percent of traders in the market. They basically do not engage in any practice, are too lazy to train, do nothing yet have food and drink, which perhaps only pigs can achieve. Their only value is to contribute pork to the market.
Once you have the ability to recognize and distinguish market trends, your trading record will turn from losses to profits. If you have decent talent on the path of practice, you may exit profitably seven out of ten trades. However, your control over position size may not be very good, and one loss can wipe out most of your profits. But for you, this is only temporary.
If you believe you have solid fundamentals, the next step is to integrate the strengths of various schools of thought into a stable profit-generating system. However, the leap from level six or seven to eight is a difficult chasm to cross. You need to try out various combinations of trades, continuously testing with small positions. Perhaps with good luck, you could form a system with an 80% profit rate in the short term, but most are at 70% or even lower.
You can judge a person's level from a few words they say. The more humble they are, the more it proves they have skills and experience, not wanting to show off because they know that there is always someone better. On the other hand, another type of person is quite common: the inexperienced are fearless, unable to tolerate others being better than them, harboring heavy suspicion. To put it bluntly, they lack exposure; a trade that earns hundreds of thousands in their eyes is just bragging, while a trade that makes tens of millions a day is like encountering a ghost in broad daylight.
Every excellent trader should have their own set of investment philosophies. Most have heard of the difficulties Jack Ma faced when founding Alibaba, but he won’t tell you how he solved them, and telling you wouldn’t be of much significance. This is like asking a trading master to share a stable profit-generating trading system; he will say nothing because there is no such thing as a system that can consistently generate profits. The real value lies in the trading framework they have developed through continuous market validation.
In the short term, systems may be effective, but in the long term, it still depends on one’s own foundation. Continuously improving trading strategies is essential as the market changes, so trading systems must also keep pace with the times. These short-term trading strategies are abundant online, but when applied, they often turn out to be garbage. If someone offers you a stable trading system, do not attempt it; tools that are overused will rust.
After a long period of honing your skills, you finally reach the second peak, possessing an extremely fast ability to read the market. What does reading the market mean? A glance tells you whether there is profit to be made, when to take it, and under what conditions.
At the same time, it is in this realm that traders can easily become obsessed. They speak of techniques without understanding the essence, always thinking about opening positions to verify their strategies, trading frequently, believing trading is the happiest thing, thus neglecting their families. The original intention of trading is to improve life, not to trade for the sake of trading. Do not lose yourself in trading and forget your original intentions.
In the end, life can feel like a wasted journey. Even if you make money, if those around you are unhappy, that money won't last long. If trading is to satisfy one’s innate desires, then it is selfish; people can become lost and ultimately lead to unhappiness.
A person can be poor, but the most fearful thing is suddenly coming into money, becoming inflated, lost, and ultimately ending up in a worse state than before.
Likes, comments, and shares are the greatest support for me. Next, I will discuss the third level of trading.
The ups and downs of contract trading: the one-in-a-million trading expert.
Continuing from the above, if you truly are that one-in-a-million genius trader who has reached the third level, when you look at the market again, your heart will only have one word: 'empty'. When you observe the market, you will become like a child, as if you know nothing, resembling someone who has just begun trading. Traders at this level are not different from ordinary people; throw them into a crowd and you would not be able to distinguish them from others.
He could be a monk sweeping the floor, or he could be Hong Qigong. Regardless of his understanding of life or his experience with trading profits and losses, he has reached a state where he does not rejoice over material gains nor mourn over personal losses.
In trading, 'the monk sweeping the floor' has no systematic strategy. A quick glance at the market reveals the highs and lows. They disdain arguments with others because their levels are different; talking too much can only invite misunderstanding and ridicule. The market is too small, and I have yet to see a trader reach the third level, but I have been fortunate enough to witness the stock market.
This kind of big player who relies solely on trading for a living can open a position just based on a moving average, ignoring news and technicals. Holding over a hundred million in assets, aside from a Hummer, they are no different from ordinary people.
What you desire, he can easily possess; all the pain you have endured is, in his eyes, just the foundation. When everything in this world except health is within reach, you will realize that such a person is not pretending to be desireless; they are genuinely indifferent. They only live in peace and the joy of trading.
When a person constantly chases wealth and dreams of getting rich every day, it indicates that they are poor at heart. However, those who reach the third level of trading can let go of everything, embodying the myriad forms of life, needing only three meals a day and thinking only of safety. Detached from worldly concerns, returning to simplicity, what they practice is not technique, but the elevation of mindset.
The ups and downs of contract trading: Why is contract trading a game for the rich?
Military campaigns and troop deployments are not accomplished in one go. Even robbers do not raid like in TV dramas, where they go all out. When encountering ordinary merchants or civilians, they might try to maximize their benefits, but if they encounter government troops and cannot win, the whole army may be wiped out.
Therefore, contract trading follows the same principle: either set an ideal stop-loss point or control the position well when entering. Military strategy is certainly important, but more importantly, it's about how to deploy troops. If we cannot withstand the market trend, do we still have soldiers to fight again? The market lacks good trading strategies, but is short of trading chips.
In a battle, you never know if the opponent has hidden reinforcements. Therefore, we must often consider the worst-case scenario. Some say contract trading is a game for the rich, indeed, but this does not refer to how much money is in the account, but rather that the rich's mindset and way of playing are a level ahead of the poor. They invest a little money, diversify, and as long as they don’t lose too much, they let profits come as they will.
How do the poor treat contracts? They invest as much money as they have, engaging in high-frequency trading, and the results shaped by their trading mindset are thus very different. If you find yourself in the lower class, the first thing you need to learn is not technical indicators or strategies, but rather changing your mindset is the most important.
Fundamentally, retail investors cannot blame the main forces for exploiting human nature to harvest leeks. Right and wrong are determined by one’s own mindset and desires, not by the main forces. If there were no dreams of overnight wealth, how could retail investors face liquidation?
Regardless of your current trading status, you must control trading discipline and position management well. The trading market can be seen as an arena, where long and short positions engage in an endless duel twenty-four hours a day. There is a subtle critical point, which is also the focus of large funds. Whoever controls this point, the market will quickly tip in their favor, forming a tidal wave of orders.
If you unfortunately open a position in the opposite direction, the role of trading discipline also becomes evident. Whether a trader can be considered excellent depends on how sharp their stop-loss point is. Even though trading strategies may change with the market, the distance between the stop-loss point and the critical point will not vary too much.
Most experts spend their time observing the market without positions. When you send out scouts, the longer they scout, the more real and substantial the information they gather, which increases your confidence. When both sides are exhausted, you send in your troops, and you become the hero. The goal of sending troops into battle is not the purpose; rather, it's about who you are fighting and whether you can win. After all, you haven't formed a brotherhood with the air force, and dying in vain will undoubtedly make you a victim of the market.
Finally, I want to emphasize that the Bitcoin contract market is a zero-sum game market where 99 lose and 1 wins, much more difficult than the stock market because of the presence of leverage. How many people can last through half a year? Even if you made 100 times profit in the beginning, as long as you do not withdraw, it is easy to face liquidation one day. Human nature is always greedy. The most crucial point: the position you held when you earned 100 times will also be the position size you had when you first started.
Position control is the first key element in trading contracts.
Giving someone a rose leaves a fragrance on your hand. Thank you for your likes, follows, and shares! Wishing everyone financial freedom by 2025!
One tree cannot form a boat, and a lone sail cannot go far! In this circle, if you do not have a good network, nor insider information, then I suggest you follow me, and I will help you succeed; welcome to join the team!!!