Shocking revelation! The core logic of the cryptocurrency academician trading system is exposed
Originally, regarding the topic of building a trading system, the coin circle academician was going to explain it only in offline courses. It is not because the trading system itself is so complicated, but because it is not complicated. However, the simpler, purer and more practical the truth is, the more it requires the comprehender to go through a long period of tempering, setbacks and suffering before it is possible to participate in the connotation of the truth. On the contrary, it is because of the complete understanding and comprehension of the truth that the truth can be fully mastered in the end. This is also the principle of simplicity. The same is true for the trading system.
Without going through the twists and turns, without going through the painful blows of real trading countless times, without going through the profound understanding in despair, even if the academicians in the currency circle give you a mature trading system, you still can't control it. Although many people have been engaged in trading for many years, they still don't know what a trading system is. They overly mystify or even demonize the trading system, regard it as a treasure or secret book, and then pursue it at all costs. Little do they know that it is precisely because of such a wrong cognition that everyone is led to a road of no return, and finally still leads to tragedy.
The coin circle academician can say that most traders only understand the trading system literally, and few people can really understand the logic. In fact, it is still very difficult to explain the essence of the trading system and its formation, because everyone has a great cognitive bias in understanding this system and abstract things. Although the coin circle academician has given a basic brief description of the trading system in historical articles, it is only a directional overview.
This time, the academician of the currency circle will systematically explain the entire logic of the formation of the trading system. Here I will talk about it in three days, first the logic, then the process, and finally the construction.
First of all, let's understand what a system is. A system is a systematic action philosophy that integrates methods, strategies, plans, decisions and action feedback, which we have established based on our understanding of the market and ourselves. We know that the role of the system is to guide behavior, and then we can establish our own correct trading methods based on the whole set of logic from thinking to behavior, or form a way to interact with the market.
This is also the foundation and fundamental premise for the system to gain a foothold in this market. Many people build systems just to analyze or grasp the market conditions, but these are just basic forms floating on the surface, because the real system has only one function, which is to interact with the market by expressing your cognition and ideas unimpeded and obtain corresponding market responses. This is the fundamental logic.
Now the academician of the currency circle will talk about the process. Every trader who has just entered the currency circle cannot directly have a trading system when he first comes into contact with contracts or spot. Because at this time, he doesn’t even know what a trading system is. Of course, this is also a process of cognition, so the academician of the currency circle thinks that all traders must go through it, that is, everyone will try to find some certainty that can make a profit in the transaction.
This process of exploration is a long journey, because the market is always full of so-called magical trading methods or theories, as well as the false reality of short-term huge profits, and books written by countless amateurs. On the surface, it seems that the certainty of making huge profits does exist, and then most people will fall into endless searching, constantly making a large number of transactions, and constantly verifying whether this certainty is reliable in the long run. Moreover, in this long journey of exploration and verification, a lot of energy is needed, and we must constantly experience the truth and falsity of each theory, and constantly verify, think and dialectically.
For example, someone says that Bitcoin's fundamentals are good now, and it can help you determine the general trading direction, and then you can't wait to study and buy the bottom to see if you can determine the direction. Then someone else says that the technical tool MACD has all kinds of magical functions, and you start to verify one by one to see if it is really as magical as they say. In the whole process of exploration and verification, the more pits you step on and the more pits you climb out of, the deeper your understanding of the nature of trading will be.
Of course, in this process, the trader's keen insight is extremely important, because as a trader, you must have the ability to see the essence of things. Then, after struggling in the complex information framework you have built for a long time, you begin to be able to distinguish what is wrong and what is right. At this time, you have entered a very critical stage, that is, you understand the key role of trade-offs in trading.
Then I started to discard those wrong theories and started to keep those things I thought were correct. As I continued to deepen and advance my understanding of trading, my knowledge and understanding of trading continued to increase, and I would discard more and more things. Finally, I could even condense a whole set of trading theories into one sentence, and start to simplify things, until I finally understood what the power of simplicity is. This is also the basic logic for the formation of the system of simplicity.
In this process, many theories or methods will eventually be falsified or confirmed one by one. However, in most cases, many people are stuck in a vicious circle of unfalsifiable and extremely complex market predictions and cannot extricate themselves. They waste a lot of time, energy and money to do things that will almost never succeed. In addition, there is an insurmountable trap in this process, that is, there are always some seemingly profound or complex, or seemingly logically closed theories in the market that cannot reveal the truth of transactions for a long time.
Especially when there are so-called big names or authorities behind these theories, it seems that it is because of their poor trading ability. Here, the academician of the currency circle quotes the following sentence to confirm it. Some people believe because they see, while others see because they believe. I believe this sentence is familiar to everyone. Newcomers who have just arrived and are at this stage, because they have not experienced the cruel blows and tests of the currency market, most of them will choose to believe in authority instinctively at this time, because they see, so they believe.
However, as time goes by, some of them suddenly realize that there is no absolute certainty at all, because most of the certainties are backed by survivor bias and unfalsifiable fallacies. So they begin to realize that in this market, accurately predicting the future trend of the market does not seem to be the core of trading.
Now we begin to see the existence of trends and find that trends have a mysterious power. This mysterious power can give all those who hold the right positions in the trend an absolute advantage in making a lot of money. It is also the only advantage in making stable profits. At this time, we begin to believe in the power of trends and gradually embrace them. However, the formation and development of trends cannot be predicted in advance because trends come from the future. So what is the future? The future is something that has not yet arrived. It is called the future, which is something we don’t know yet. Since we cannot predict it, how can we grasp the trend?
At this time, the Coin Circle Academician felt that only a very small number of people would have insight into one of the core essences of trading, that is, the same source of profit and loss. Regarding the fundamental logic and essence of the same source of profit and loss, the Coin Circle Academician has already explained it in detail in yesterday's cognitive system course. Friends who have not understood it will share it with you when they have the opportunity. Students who have not understood it can look through the content and materials of yesterday's course. The Coin Circle Academician will not repeat it here, and we will return to the topic.
Since speculative trading is a risky transaction, we naturally need to pay a certain risk cost in exchange for corresponding returns. Trying to obtain huge returns without taking any risks is ultimately just a foolish dream and will never be realized.
As a result, some people in the cryptocurrency circle began to try and make mistakes to verify whether the trend formation conforms to the initial prediction logic. This is also the necessary process and step for the formation of economic trends. At this point, there is a basic entry rule. Since the development of the market is full of uncertainty, unexpected black swan events are always everywhere.
Then we have to obtain the possible benefits from unknown trends under the premise of controlling trading risks. Controlling risks means that you have to learn to stop losses decisively. If you want to obtain greater benefits from the trend, you need to try to bear the risk of a large trading retracement. Because trading itself is a process of balancing gains and losses and making trade-offs.
In this process, you need to constantly adjust your stop-loss mode and take-profit mode, and go through the process of continuous trading, continuous summarization, continuous learning, continuous improvement and improvement. At the same time, you also need to constantly polish your own character, constantly improve your level of risk awareness, and begin to try to integrate it with your own risk preferences.
High win rate and low profit and loss ratio or low win rate and high profit and loss ratio? Keep trading, keep optimizing, keep taking action, and keep experiencing the various feelings behind all of this. Until the day when it finally comes true, you will have a set of basic exit rules.
Even so, the development of the market is still full of uncertainties. Because in this process, the development of the market is sometimes relatively calm, sometimes it will be ups and downs, sometimes it will be magnificent, and sometimes it will be extremely angry and irritable. In the meantime, I just felt that I had realized the core of the trading logic, but soon I would be slapped in the face by the market again. There is no way to restart a new trading war.
Of course, there are a small number of people in the currency circle who stand on the shoulders of the trend from the beginning, and then the capital curve soars into the sky. However, there are still quite a few people who are entangled by the market shock from the beginning and cannot get rid of it until they are slowly tortured to death in the constant trial and error. Different luck, different entry time, and different understanding of positions will produce different deviations, and finally lead to completely different trading results.
In the two examples cited by the academician of the currency circle, which one is better luck, the former or the latter? The academician of the currency circle believes that it is the latter. There is also a popular saying in the trading market that failure is not the mother of success, but success is. However, it is obvious that in the uncertain field of speculation, failure is the mother of success. In speculative trading, if you do not experience the most cruel ways of death, you will never have the most in-depth understanding of the so-called fund management.
It is obvious that the former trades too smoothly, and although his current result is profitable, in his cognition, he lacks sufficient means to deal with the cruelest phenomena. Because your cognitive loopholes will one day be discovered by the disorderly market trend, and in the end you still cannot escape the cruelest beating of the market.
The latter will form a more determined way of fund management after experiencing the most brutal and high-frequency beatings and tests that are far beyond expectations. So far, he has his own set of fund management rules. The academician of the currency circle has written here, and everyone has a basic structural understanding of the logic of the trading system.
It is a complete trading system formed by combining your own entry rules, exit rules and your own fund management rules. This is the trading system. When we all trade at this stage, we will not believe it just because we see it. Because at this moment we have the top trading cognition.
At this time, we can see through the fallacies and the truth, have our own firm beliefs in trading, begin to see because of our beliefs, and thus have our own trading system.
Today's content ends here. In the next article, the academician of the currency circle will focus on the detailed analysis of the construction steps. Welcome everyone to communicate and learn together.
I am an academician of the cryptocurrency circle and a warrior who has always been protecting the leeks. I wish my fans to achieve financial freedom in 2024. Let’s cheer together!
Remember to like, collect and follow$BTC #比特币走势分析 #比特币政策 #以太坊合约 #solana生态 #ETH投资
