This market is like a vast jungle, where the weak are preyed upon by the strong. Some navigate it skillfully, while others are devoured by the market within days of entering. Do you want to be a hunter or prey? If you do not want to be treated as chives by the market, you must understand: trading is not about eating through calling trades, but about relying on your own survival rules.
1. What conditions must a trader meet?
(1) Independent thinking, do not be a 'copy-trading robot'
The market is flooded with various 'god trades' and 'insider information', but the reality is: those who truly make money do not shout trades everywhere, and those who shout often make money off you. If you follow in, others run away; will you still be waiting for a reversal? Don't be foolish; the market never shows mercy to blind followers. Traders must learn to think independently and build their own logic, rather than blindly trusting so-called 'experts' or 'insiders'.
(2) Strict risk management, do not be a 'gambler'
The market is not a casino, but many traders behave more like gamblers. Being fully invested, heavily leveraged, and not setting stop-losses is like tying your funds to a bomb, which may be detonated by the market at any time. Risk management is the basic skill for survival.
• The maximum loss for a single trade should not exceed 1%-2% of total capital.
• Strictly set stop-losses, rather than holding onto the delusion that 'it might rise again'.
• Maintain liquidity, do not let the market force you to cut losses.
(3) Strong psychological quality, not being 'played' by the market
Trading is a psychological battle, testing not just your skills but also your willpower. The market rises and you feel excited; it falls and you panic? Then you will always be a 'slave to market emotions'. True traders remain calm during market euphoria and rational during market panic. Once your trading plan is set, do not panic and exit due to fluctuations of one or two candlesticks.
2. What pressures and risks do traders face?
(1) The uncertainty of the market; you must learn to accept losses
Trading is not a game of 'making money on every trade', but a strategy of 'overall profit'. Losses are a part of trading; what's important is how to manage losses, not how to avoid them. If you cannot face drawdowns calmly, you will eventually be eliminated by the market.
(2) The impact of market emotions, do not be a 'chives'
Sometimes the market is like a madman, excited one second and panicking the next. If you let market emotions take you away, chasing highs today, cutting losses tomorrow, and then jumping back in to catch the lows, the final outcome will be a shrinking account. Traders must remain calm and not let short-term market fluctuations influence their decisions.
(3) Noise from social media, learn to filter out useless information
Social media is filled with various 'gods', 'trade calling groups', and 'insider information'. Many people think others are smarter than themselves, follow their operations, and end up realizing they are the ones losing money. Why? Because those calling trades will not take responsibility for your losses. In the market, only one person can pay for your trades—yourself.
3. How to properly view the market and establish your own trading system?
(1) Find a trading style that suits you
Everyone's risk tolerance, trading cycle, and trading habits are different; others' strategies may not suit you. You need to find the trading method that suits you best, rather than rigidly applying others' models. Do you prefer quick in-and-out short-term trading, or do you lean towards long-term trend trading? Find your style, and then build a complete trading system around it.
(2) Establish clear trading rules; do not operate based on feelings
A mature trader has clear standards for entering, stopping losses, and taking profits, rather than relying on feelings to make orders. Your trading system should answer the following questions:
• When to enter the market? Based on what signals?
• When to stop losses? How to set stop-loss points?
• When to take profits? How to protect the profits already gained?
If your trading relies on 'feelings' or 'guesses', then every penny you earn will eventually be returned to the market.
(3) Regularly review trades, optimize strategies, and constantly evolve.
The market is dynamic, and traders must also continuously evolve. Regularly review trades, analyze successful and failed trades, and identify areas for optimization. No one can make money in the market in a constant manner forever; only those who can adapt to changes can survive.
4. Stay away from trade calls and insist on independent trading
Market 'calls' can be roughly divided into three categories:
1. True experts, but you may not understand their trading logic; following them blindly could lead to heavy losses.
2. Operators who harvest retail investors, using communities to create market sentiment, enticing retail investors to enter and take over.
3. The 'keyboard warriors' with no trading experience, who haven't made money themselves, rely on calling trades for a sense of existence.
No matter what it is, you should stay away. The core of trading is independent thinking, establishing rules, and strict execution, rather than relying on others to call trades. If you cannot make independent decisions, you will always be prey to the market.
Conclusion: Surviving in the market relies on a system, not luck.
The market is not lacking in smart people; what is lacking are those with patience, discipline, and execution. Successful traders rely not on luck or 'insider information', but on a trading system that has been validated over time.
Do not be a 'puppet' of the market; be a 'hunter' of the market. If you learn to establish your own rules, adhere to execution, and not be disturbed by market emotions, then no matter how the market changes, you can survive steadily and eventually reap your own profits.