My philosophy of trading is: I am a fool. If I can win, I will fight to the death. If I can’t win, I will run away!
Let’s look at point 1 first: I’m a fool.
This is the biggest premise for me to do trading and also the most important point, so I will say a few more words about it here.
Why do I think I am a fool? Because there are too many smart people in the market, including myself a few years ago. What do smart people like to do? (Here I am talking about you, and also about the once "smart" me) I am the best in the world, I can definitely beat the market, the market is my ATM, if I don't make hundreds of millions in the market, how can I live up to my IQ? ? ? So smart people like to study various theories, various indicators, various graphics, trying to copy every bottom and escape to every top through technical means. He believes that he will be able to match Soros and Buffett sooner or later, so he doesn't want to miss any market, in order to achieve his goal of getting rich, he frequently trades and trades heavily, and every order he places feels that he is right, believing that the market will definitely develop in the direction he expects, even if he is wrong, he will not admit defeat, and firmly believes that the market will definitely turn around. I am so smart, how could I be wrong about the market? ? ? So he keeps carrying orders, and the result is...
How did the fool do it? The fool read those complicated theories but couldn’t understand them. There was no other way. He could only choose the simplest theory. Therefore, the theories that the fool understood were also understood by smart people, but smart people thought that this was too simple. How could he make a profit? ? ? Because the fool knew very few theories, he could not understand many market trends. He had no choice but to do one or two market trends. He could not grasp other market trends and could not do them well, so he simply did not do them. Moreover, because he knew that he was a fool, he knew that he was wrong every time he placed an order. Therefore, when the market proved that he was really wrong, he would close his position without hesitation without any psychological burden, because it was too normal for him to make mistakes. He was used to it, but it was not common for him to make the right ones. It was not his ability to make the right ones. It was God’s gift. Therefore, he must be grateful and burn incense to thank God for his gift when he went home that day. . .
Then look at the second point: If you can win, fight to the death.
Because I am a fool. As luck would have it, I won a battle, but you said to me, "Okay, okay, don't go too far. You should withdraw your troops when you are almost victorious." Withdraw your troops? ? ? Are you kidding me? ? ? I am a fool. I finally won a battle after a whole year. I must feel great? ? ? I must fight to the death? ? ? Otherwise, how can I be worthy of those brothers who died before me? ? ? I must fight to the death until I feel great. . .
Let’s look at point 3: If you can’t win, run away.
In fact, the first point has been mentioned. For a fool, isn’t it normal to lose a fight? What else can he do if he doesn’t run? For a fool who often loses, he is used to running away, and he will run away as soon as possible without hesitation, because the fool still has parents and children who rely on him for support, and he doesn’t want to be beaten to death in one blow. As the saying goes, if you have green mountains, you will never be afraid of running out of firewood. . .
The above three points are my trading ideas and concepts. I used to think I was extremely smart, but I kept losing money. Since I realized that I was a fool, I started to embark on the road to profit. . . Therefore, I call my trading philosophy "Fool Theory", which is different from those high-sounding Chaos Theory, Wave Theory, Gann Theory, etc. (You can laugh at me as much as you want...haha)