Divine Blade Trading Principles 14

In the financial market, it’s better to be a long-lived star than a fleeting celebrity; why does the rabbit never outpace the tortoise? The issue isn’t speed or explosiveness, but rather the rabbit's short lifespan and the tortoise's long one. Thus, within a limited timeframe, the rabbit is the winner, but when the timeline extends, it falters; mature investors should learn the tortoise's way of survival, rather than the rabbit's fleeting brilliance. At all times, one must protect the principal; with sufficient principal and enough patience, how can there be failure? Impatience or excessive single-position losses are detrimental to survival in futures trading. Why do only 0.3% of people in the market make money? The main reason is that most people choose the right direction, run when they see profit, but when they incur losses, they stubbornly hold on, averaging down their losses, which usually results in small gains and large losses—how can one talk about profits!

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