The vast majority of people in this market are destined to be permanently lost, seeking all kinds of tricks and secrets but ultimately failing. Why can't I use some methods that others can use, or even die after learning them? Here is a historical story.
In 1861, the Second Opium War directly captured Beijing. The emperor fled. The Qing court was truly shaken. When the Sixth Prince returned from Rehe, one of his main missions was to "buy" this powerful weapon from foreigners. There were two foreigners, the British and the French.
The Sixth Prince was worried, wondering if he could coax or deceive, and whether six million taels of silver could buy 3,000 guns. Who knew that as soon as the foreigner opened his mouth, before the British and French could compete with each other, Yi Xin immediately heard the reply: "The foreigner is not only willing to sell weapons, but also willing to sell the method of making weapons."
The Sixth Prince was overjoyed. But when Yi Xin got the cannon blueprint and unfolded it, he couldn't help but frown. A cannon is actually very simple, just a cylinder, stuffed with gunpowder shells, and it can be fired. The real problem is the steel production. A cannon weighs thousands of kilograms, and modern wars often involve hundreds or thousands of cannons. Where can the Qing court find so much pure steel?
And because the chamber pressure of the cannon is very high, it requires high-quality steel from a blast furnace, not a blacksmith shop in the countryside. The Opium War was a victory of hot weapons over cold weapons on the surface. But in reality, it was a victory of steel production. Although Yi Xin got the blueprint, he couldn't make it because he didn't have that much steel. China's real industrial revolution began in 1861.
If you look at Li Hongzhang's memorial at the time, "All the measures we have now are to focus on iron." Yixin's top priority was to build the Hanyang Iron Works. However, coal was needed to make steel, so the Kaiping Coal Mine was also needed. From the coal mine to the steel plant, transportation was needed, so the Jinpu Railway was built. When the steel was made, it needed to be made into guns and cannons. This is how the Jiangnan Manufacturing Bureau was established. The above constitutes the main framework of the "Westernization Movement."
Seeing this history, I believe that spiritual people will have insights, and if they think about it carefully and deeply, they may even feel fear. Because even though the Qing Dynasty vigorously promoted the Westernization Movement, it ultimately failed.
It was not until after the Eight-Nation Alliance that the Qing government could no longer tolerate it and built a steel industry across the country. It popularized the "New Army". - Then the New Army in Wuhan mutinied - and then the Qing government fell. Yes! It fell!
Now comparing it with the transaction history, many people see that the methods of the masters are very profitable (their weapons are advanced), and then I want to learn them, and learn their methods (the prerequisite is that someone is willing to show you the real weapon drawings), and then you will find that even if you get the drawings, you can't make the weapons at all.
Because your trading mindset and trading framework are not on the same dimension as others (an agricultural country will never produce industrialized weapons)
So you will find that the truly correct path is to start industrialization from scratch, first look for iron ore, coal mines, build railways, open factories, and then you will perish.
(When you have accumulated knowledge, human nature, psychology, and techniques from all aspects, and completely destroyed the old trading system and thinking, you will be on the road. Yes! You will be on the road.
Assuming that 1861 was the beginning of industrialization, China basically completed industrialization after the founding of the People's Republic of China. Therefore, the establishment of a trading system is also a long process)
In fact, the above paragraph explains why trading technology is not as important as imagined. The real wealth is the trading system, and the establishment of the trading system is completely personalized. Just as the industrialization process of each country is different, everyone's system is also different.
——So the conclusion begins
N situations of dying in the market:
1. First of all, most people don’t realize how formidable your competitors are and that they are armed to the teeth. And you can’t even see what the weapons look like.
2. You see the weapons, but you can’t find the real weapon drawings at all.
3. Fortunately, you see the real drawings, and you find that even with the drawings you still cannot make weapons, because you are a backward agricultural country and you need to quickly carry out the industrialization process.
4. Fortunately, you have survived various natural and man-made disasters, and you will find that the paths to industrialization vary greatly. In the end, you need to walk step by step on your own.
5. In fact, even if you have completed industrialization with great difficulty, you will find that there are still differences in the paths you choose. If you choose the wrong one, you will still die.
So seeing this, we should be able to draw a conclusion:
For most people, it is impossible to establish an effective trading system that suits their own needs throughout their lifetime.
What is real wealth? It is the system. A correct system facing competition without a system is a real dimensionality reduction attack.
Building a trading system is an extremely complex task. It requires an investor to constantly learn, think, and accumulate experience. Many people die in these three "constants". This is because this stage requires continuous investment of energy and money to support it.
What’s even more frightening is that after investing, there’s no return in sight, and I don’t know where this torment will end.
This stage may take several years, even 6-8 years. Of course, this refers to the growth time of an ideal and ambitious investor. Looking around us, many traders are still losing money after losing money for more than ten years, because they are not aware of this problem at all.
In short, only after this period of time can you realize the importance of building a system and begin to try to build a trading system.
I think that many speculators who enter the trading industry start their careers by trading on news.
I started to learn technical analysis slowly, but gradually, I found that when I learned these things, I was very excited and seemed to have found the winning formula, but when it came to actual trading, I still traded based on the news and feelings.
At this time you will find that it is because of psychological factors that you did not follow the technical indicators, so you might look for some books on spiritual practice, Zen, etc. to learn, in order to overcome your mental problems, but at this time the transaction still will not improve, even if you trade according to these techniques, but these techniques sometimes work and sometimes do not.
At this time, most people will fall into depression, and the trading career of some of them will end here.
Another small number of people know that there must be something they have not done well.
After constant searching, I finally found:
It turns out that technology sometimes works and sometimes doesn’t, and this has no necessary connection to the ultimate success of the transaction.
Trading is a matter of probability. As long as you make more when you win and lose less when you lose, you can be successful.
After understanding this, they began to accept losses in trading calmly, and their account equity began to grow. At this time, some traders began to be complacent, thinking that they had finally found the holy grail of trading. However, what greeted them was a huge loss, not only losing all the money they had earned before, but also losing most of their principal. Some of them ended their trading careers.
A successful investor is probably like this, learning technology, mentality, strategy, and risk control step by step. Of course, this is not a question of sequence, but a process of integration of various aspects.
A complete trading system consists of at least the following aspects:
1. Trading technology. Used to analyze the market.
2. Mindset. Use it to execute your transactions and be ruthless at critical moments.
3. Strategy. Used to plan your trades.
4. Fund management. Used for risk control.
These four aspects support each other and are indispensable. Without any one of them, you will not be able to reach the other side of success. Their relationship can be represented by the following figure.
The trading system is just like a triangular pyramid. If any vertex is missing, it cannot be called a system.
