This month, I started to get more fans and became more motivated to post.

Although everyone only likes to find the so-called "answers" in the square, and few people are willing to read them seriously, I still like to write this kind of content that truly explains the market, even if there are only a few people who truly love trading and can understand it.

My understanding of the practice of trading is divided into two parts:

The first is to study the market, and the second is to study yourself.

The core of market research is to find patterns. If you decide to embark on this path, you need to read Jesse Livermore's Reminiscences of a Stock Operator first. This book is known as the investment bible and has been a bestseller for hundreds of years. The entire text is just a diary, but it has been read over and over again by countless people. The central idea throughout the text is just one sentence:

“Stock prices always move in the direction of least resistance”

This sentence is also regarded as the basic theory of all trading markets, and is also commonly known as "Tao". If it is condensed, it can be summed up in four words: supply and demand. If there are more buyers than sellers, the price will rise, and vice versa.

When you can deeply understand this principle, what you need is to build applications based on this basic theory to gain benefits, which is the so-called "technique" or method or model. There are countless methods publicly available on the Internet, so I will not elaborate on them here.

When I first learned how to trade, I studied the market for 20 hours a day and only slept three or four hours. A year after I got started, I still studied the market for more than ten hours a day and studied more than 10,000 candlestick charts. This is the part that requires hard work and perseverance.

Part 2: Study Yourself

After I studied the market to a certain depth, I often ranked among the top in various real-time competitions with amazing returns. It was common for me to double my money in a week and several times in a month in the A-share market. People who came from the A-share market should know that this volatility is not easy to achieve. Only a small number of people who have been fighting in absolute hot spots for many years with full warehouses can achieve it. But the retracement is also amazing, and it is common for my account to be cut in half, so it always fluctuates like a roller coaster. After a period of time, I realized that my trading system had such a fatal loophole, so I started to study and consult successful hot money everywhere, learn from them, but my offensive ability is too strong, and many times they can't give me better advice. As time goes by, the ups and downs are repeated, and I slowly understand that since we rely on human nature to make profits, is our human nature also the source of others' profits? So I started to study my own practice.

Human nature has too many influences on trading, and everyone is different, so I can only talk about it briefly. If you have any questions, you can also leave a comment in the comment area, and I will reply seriously. Simply put, you can only trade within your ability. For transactions within your ability, even if you have human shortcomings, it will not have much impact on the transaction.

Where are the limits of your abilities?

The market is the most objective examiner, and your account is the most objective answer. Every once in a while, I will review my transactions one by one, list the profits and losses of the same method, and then see which methods have caused losses or low profitability. Then, combined with the market environment at the time, I will analyze my own trading problems, constantly remove unprofitable transactions, and optimize the well-performing models. Over time, you will find that many of the so-called opportunities you see are actually just a waste of time in the long run, and they don’t make money at all, or even lose money. You might as well do something else with this time. So the more you trade, the simpler it becomes, just like when an airplane flies over the clouds, it will always be sunny. If your trading is not simple, then either there is something wrong with your trading or there is something wrong with your brain. There are simple ways to make money, so why do you still do complicated things? If you can’t do the simple things well, how can you do the complicated things well?

That’s all for today. If you have any questions about trading, you can ask in the comments section and I will answer them carefully. (Those who don’t answer specific currencies, specific opinions, or advertise will be blocked)