Many people, when it comes to making money, love to study complex indicators, often getting lost in dozens of windows and several moving averages. Ironically, those who truly turn their fortunes in the market often rely not on intelligence, but on simplicity.
I’ve seen a very typical example: an older guy had no special skills, just 1500U in hand, and yet he managed to use a set of 'dead rules' to turn it into the down payment for a new car in less than two months.
His method can be summed up in four sentences:
First, split the capital. He divided 1500U into 30 parts, only moving 50U at a time, so even if he made a mistake, it wouldn’t be fatal. While others go all in, he only tests the waters with a needle.
Second, rigid buying points. No matter how bustling the market is, he only looks for two conditions: one, the trend is obvious; two, the volatility is significant. As long as these two conditions don’t occur simultaneously, he would rather lie down and sleep.
Third, absolute profit and loss limits. Every time he enters the market, if he loses 1%, he leaves immediately; if he makes a profit, he takes 3% off the table, never dragging things out. To put it simply, it’s mechanical execution, not getting emotional with the market.
Fourth, compound profits. After winning a trade, he doesn’t rush to increase his position, but instead continues to roll 2% of the total capital, slowly building up the snowball. Many people always think of getting rich overnight, and end up losing everything; he, however, relies on 'ants moving a house' to support his account.
What’s more ruthless is that he set three rules for himself:
He cannot trade more than twice a week; he absolutely does not touch the market when emotions are explosive; if he has two consecutive losing trades, he must take a forced break for three days.
You might think this is foolish, but it’s this kind of foolishness that helps him avoid 95% of the pitfalls. While others face liquidation, his account continues to grow steadily.
Many times, making money doesn’t require being very smart; what’s needed is a set of execution logic that is extremely simple.
If you don’t want to keep going in circles, then join me in strategizing to help you rise from the low point. The current market is a great opportunity for recovery and turnover.
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