Stable profit is the ultimate goal of traders. It is the ability to obtain wealth from the market with one's own skills without relying on any external help.
The focus of stable profit is on stability. One must be able to keep the capital account in a profitable state for a long time, and the capital curve must continue to rise for it to be considered stable profit. A profit once or twice is not stability.
There are three essential conditions for stable profit:
1. Stable trading strategy
A common misconception among traders is the pursuit of making a profit on every trade and wanting to earn a large sum of money from each trade. This indicates that the trading strategy is unstable or that there is no trading strategy.
The need for a stable strategy lies in being unchanging in the face of changes, using probability to ensure that the long-term profit probability is greater than 1. If the strategy is inconsistent, using one short-term trading method today, following another tomorrow, and then studying other indicators or theories later on, this represents instability in strategy.
In the short-term exploration phase, different strategies can be tried, but in the long run, a trading system must be solidified and applied, refined, and honed over the years to become an expert.
2. Stable trading mindset
Anyone who has traded knows that mindset is very important, even more so than skills. Trading techniques are not mysterious; anyone willing to learn can understand them. However, mindset, or trading psychology, requires long-term honing and constant breakthroughs in cognition.
How to calmly face floating losses and drawdowns is a required lesson for every trader. Imagine a trader who has achieved stable profits; they probably would not be anxious to the point of sleeplessness due to current floating losses or a few drawdowns.
3. Stable trading behavior
No matter how excellent a trading strategy is, it requires human execution, and traders must apply, review, and correct it. This process consumes time, and backtesting requires even more time.
Being able to do one repetitive task for years, even decades, consistently leads to achievements, not just in trading but in any endeavor.
However, the reality is that the vast majority of people will be eliminated over time. There are too many reasons and external factors that lead people to give up on sticking to something. But there are also a few who can overcome all difficulties and remain consistent.
The reasons for giving up may be very valid and convincing to everyone, but they do not change the fact that they will not see the light of day. In the end, only the shining gold remains after the sand is washed away.#美国加征关税 $BTC