The reason financial trading is difficult is that it is not just a numbers game, but also a game of human nature, psychology, and rules.
The market is unpredictable, but patterns do exist. The market fluctuations in the short term are full of randomness, just like flipping a coin; no one can accurately predict whether it will rise or fall in the next moment.
However, in the long run, the market will follow some basic patterns, such as economic cycles, industry trends, and company fundamentals. The core ability of speculators is to find these patterns and use them to make money.
Risk is the shadow of trading, which can never be escaped. The essence of trading is managing risk. Every trade is a probability game, and no one can predict correctly 100% of the time. Successful traders do not avoid losses; instead, they understand how to control losses, allowing profits to cover losses, ultimately achieving positive returns. This is the balance of what is known as the "profit-loss ratio" and "win rate."
Long-term survival is more important than short-term windfalls.
Many people enter the market, always thinking about getting rich overnight, but the reality is that the market will harshly educate those who are overly eager for quick gains. Trading is a marathon, not a sprint. The key to long-term survival is:
1️⃣ Do not blindly pursue high returns, but seek stable compound interest.
2️⃣ Do not try to seize every opportunity, but wait for the most suitable one for yourself.
3️⃣ Do not treat trading as gambling, but as a craft that requires continuous learning and refinement.
It is a practice; besides honing technical skills, cultivating the right mindset is even more important.
Keep going.