In your trading career, what opportunities have led to a qualitative change in your trading level? Analyzing techniques is just a tool for trading, while the logical thinking approach to trading is the fundamental wisdom of trading.

First, solve the problem of choosing trading markets.

The first principle is "Do not trade in unfamiliar markets," meaning the technical trends of the market you participate in must fit within your technical analysis framework.

The second principle is "Do not trade in inactive markets," because the poorer the liquidity of the market, the easier its price movements are to manipulate, and participating in such a market is akin to falling into a trap. Next, solve the problem of selecting trading varieties. The best trading varieties are those with good liquidity, active price movements, and genuine, natural trends.

Theoretically, if trading techniques precisely address the timing of entry and exit, then capital management and self-management are completely unnecessary. This is akin to a master swordsman who can defeat all opponents. However, in reality, there is no master swordsman; no matter how powerful a person is, they will encounter equally matched opponents.

Similarly, even the greatest traders have limitations and flexibilities in their trading techniques.

For example, trading techniques can clearly indicate that a certain variety will soar or plummet significantly, but the timing could be very soon or take a long time, long enough for all those waiting to lose patience and confidence. In terms of path selection, a large-scale trend may be one-sided and straightforward, or it may be a convoluted "descending channel" or "ascending channel." If you do not manage your capital well and engage in heavy trading blindly, even if you correctly see the big direction, you can still be wiped out in a small price correction movement. In margin trading with leverage, heavy trading or blindly increasing positions with profits carries a 100% probability of liquidation.