Many people lose money in trading because they don't understand the rules of the game in this market. Just like the three coin toss games below, how would you choose?

  1. Guaranteed losing situation: 50% win rate, win 1, lose 2 → must lose in the long run

  2. Trap situation: win 100, lose 1, but win rate 0.1% → must lose in the long run

  3. Winning situation: 50% win rate, win 2, lose 1 → must profit in the long run

Smart you must know which to choose. The essence of trading is to find your own 'winning situation' in the market.

Core principles of trading

Real trading masters do two things:

  1. Establish probability advantage: create a trading system that 'wins more and loses less'

  2. Continuously output advantages: repeat this system like a machine

How to do it specifically? Remember this golden formula:

Entering trial and error + cutting losses + letting profits run + money management = long-term profit

  • Trial and error: probing opportunities with controllable costs

  • Stop loss: admit the loss immediately if wrong

  • Hold on to profits: if right, hold on boldly

  • Add positions: expand gains when the trend continues

  • Control position: always leave yourself a way out

The truth about trading styles

Someone asks:

  • Should I do short-term or long-term?

  • Should I concentrate or diversify?

  • Should I focus on technical analysis or fundamental analysis?

The answer is: it doesn't matter at all!

These are just different ways to achieve probability advantages. Like:

  • Some accumulate small advantages through high-frequency trading

  • Some capture huge profits through long-term trends

  • Some strictly implement using quantitative models

  • Some respond flexibly based on market feel

The key is not the method, but whether your method has statistical advantages and whether you can persist in execution.

The harsh truth

The market is like a casino, but fairer than a casino:

  • The advantages of the casino are written in the rules

  • The advantages of trading are hidden in your system

90% of people lose money because:

  1. There is no real probability advantage

  2. Unable to persist in executing advantages

  3. Always looking for the 'holy grail' and frequently changing methods

Final suggestions

If you want to keep making profits, ask yourself now:

  1. Does my trading method have statistical advantages?

  2. Can I execute it like a machine?

  3. Can my money management keep me alive until the advantage shows?

Remember: in this market, stable profit = probability advantage × execution discipline × survival ability. Everything else is noise.

Stuck, confused, not sure how to operate? Don't panic
I am A Yu as your analyst friend, I only do one thing: help you make money with practical experience.

Daily focus: BIO LAZIO LINK

#中国加密新规 #BitDigital转型 #ETH质押退出动态观察