The path to enlightenment in the financial markets is not about adding more techniques, but about stripping away unnecessary obsessions.
"In trading, ultimately, it's about subtraction." Seven years ago, when I first heard this phrase, I nodded with a semblance of understanding, unaware of the blood, tears, and insights it contained. At that time, I had just stepped into the trading world, my mind filled with fantasies of 'doubling my money' and 'financial freedom,' believing that with my intelligence, I could quickly find the secret to wealth in the market.
Like most beginners, I was obsessed with learning various technical indicators, trying dozens of trading systems, browsing countless forums and blogs, yet I was unwilling to do the most basic review work. The result is predictable; I lost money for a whole year.
I. Awakening Moment: Acknowledging That I Am Just an Ordinary Person
The real turning point came from my renewed understanding of my abilities. I realized that I am not a genius, and I do not have the stunning talent like Wang Bo; I am just an ordinary person. And ordinary people who want to survive in the market must put in hard work.
I started to honestly backtest, from mainstream coins to altcoins, from hourly charts to monthly charts, reviewing market trends one by one. After several months, I finally grasped some of the market's rules: how the market transitions from consolidation to trend, and which structures are likely to see real breakthroughs.
I found that as long as I persist in only taking these high win-rate opportunities, I can achieve positive returns every year. At that moment, I confidently thought I had found the holy grail.
II. The Heavy Blow of Reality: The Chasm Between Knowing and Doing
However, the results of real trading shocked me. Not only did I not achieve stable profits, but I also experienced multiple liquidations.
What I remember most is that winter night when a large bearish candle of ETH directly pierced through my position. In the early morning, I wandered aimlessly on the street for two or three hours in my thin clothes, filled with confusion and unwillingness.
Why have I found the method yet still cannot avoid the fate of liquidation? This question troubled me for a long time. Later I realized that there is a deep chasm between knowing and doing. Although I understood the concept of subtraction, I did not truly grasp its essence.
III. Enlightenment: The Trading Wisdom in the Tao Te Ching
The turning point came after a loss. At that time, I reread the Tao Te Ching, and two sentences struck me: 'Reversal is the movement of the Tao; the weak is the application of the Tao.'
These ten characters unlocked the mystery in my heart. The reversal as the movement of the Tao made me realize that the direction most traders pursue for high returns might itself be wrong. True gains should start with 'controlling risk,' as Buffett said: 'Preserve your capital, preserve your capital, remember the first two points.'
The application of the weak highlights the relationship between 'letting go' and 'gaining.' Wanting to grasp every market trend is 'strong'; acknowledging that I can only grasp a part of the opportunities is 'weak.' The true strong are those who dare to show weakness and understand the need to let go.
IV. Subtraction Practice: The Shift from Technique to Mindset
I applied these insights into trading:
Limit risk and preserve capital: No longer pursuing high win rates and massive profits, before each trade, I ask myself: 'If this trade goes wrong, can I afford the loss?' If I cannot afford it, I do not take the trade.
Actively give up most opportunities: There are opportunities in the market every day, but those that truly belong to me are not many. I have learned to give up those seemingly tempting opportunities that do not align with my trading system.
Let profits run, but do not be overly greedy: profits are like a fat fish, with a hard head and many small bones at the tail; I only eat the fattiest part in the middle.
Many people might say: 'I understand all these principles.' But just like 'smoking is harmful to health,' you only truly understand the meaning when you are really lying in a hospital bed. The window paper of trading is not broken by knowledge but by realization—true insights after having sacrificed, lost, and suffered.
V. The Essence of Subtraction Trading: Reduce Desire Rather Than Methods
Now I understand that trading subtraction is not about reducing trade frequency or methods, but about reducing inner desires, obsessions, and greed.
Mature traders will give up 80% of opportunities, focusing only on that 20% they can grasp best. Just like hunting, after setting the trap, the only thing to do is patiently wait. Sometimes it may take a week or even a month to catch a big prey, but that is far better than chasing daily and achieving nothing.
Livermore once pointed out that those who try to seize every opportunity in the trading day cannot succeed. True winners often take their time: short-term traders trade only once or twice a week, swing traders take action once or twice a month, and long-term traders may trade only once or twice a year.
Conclusion: A Return from Complexity to Simplicity
Now, I no longer experience liquidation, not because I have become smarter, but because I finally acknowledge that I am an ordinary person, learned to put in hard work, and learned to let go.
The path of trading is a process of moving from simplicity to complexity and back to simplicity. The ultimate success does not depend on how many complex technical indicators you master, but on whether you can let go of unnecessary obsessions and return to the most basic risk control and patience.
Letting go and gaining is the essence of trading philosophy. One must let go to gain; big letting go leads to big gains. When you truly learn to let go, that is when you start to gain. Follow Xiang Ge to learn more first-hand information and accurate points in the crypto world, becoming your guide in the crypto space; learning is your greatest wealth!#巨鲸动向 #加密市场观察 $ETH
