95% of people do not understand the core essence of trading. How many of the following do you know?

1. Uncertainty is the foundation of the market's existence; future market trends cannot be predicted with precision.
2. Trends are chaotic; traders need to categorize and define chaotic movements to form deterministic rules to cope with uncertain trends.
3. What is a trend? Traders need to define their own trends and use this as a basis for trial and error in opening positions. Breakouts indicate a trend, retracements to support levels indicate a trend, crossovers of moving averages indicate a trend, topping and bottoming indicate a trend, and chasing highs and lows also indicate a trend.
4. What is following the trend? Look at your trading account: making money means following the trend, losing money means going against it. It has nothing to do with the patterns of the trend; in a bullish trend, if you go long but your losses keep increasing, can you say you are following the trend? If you are following the trend, why are you still losing money?
5. How to open a position? Any method of opening a position is fine; what it can determine is the trading rhythm and trial-and-error efficiency, not whether you can make money. You can decide long or short by flipping a coin and still make money; is your method worse than flipping a coin?
6. The opening win rate of any trading method does not create an advantage. After the law of large numbers takes effect with a 1:1 profit-loss ratio, the win rate will approach 50%. Many traders focus on opening positions for a long time, but the core of making money is not here.
7. What is the core of making money? It is the logic of cutting losses and letting profits run to achieve a high profit-loss ratio; this is the only source of advantage.
8. The core purpose of position management is to preserve capital and to earn more when making money and to lose less when losing money.
9. What is trading technique? Trading technique starts from the moment of opening a position; it involves how to handle risk and return, what to do when right and what to do when wrong, how to cut losses, and how to let profits run reasonably. Various studies before opening a position are trading analysis, not trading techniques.
10. Why do we know many trading principles but still cannot trade well? Because knowing is far from enough; cognitive understanding needs to reach a top level. Who doesn’t know that stop-loss is correct, yet many traders still stubbornly endure losses.
11. Why can't we hold on to profitable positions? Because profits often do not run and frequently receive negative feedback.
12. Why is making money so difficult? First, because making money relies on the market trend aligning with the trading method; without market movements, even the best hands must hold back. Second, the advantage of a high profit-loss ratio is relatively weak, which means that even with high skill, making money is a tortuous process.
13. Are there huge profits in trading? Profits and losses come from the same source; taking risks to obtain returns, huge profits come at the cost of huge losses. The important thing is what kind of huge profits you want to earn and what price you are willing to pay for it.$BTC $ETH #ETH巨鲸增持 #美股代币化 #Solana期货交易量创新高