Someone left a message on social media today saying: Cathie Wood was the one who pulled the market yesterday, so the price went up. Technical analysis is useless for the main force or fundamentals. This is a general idea. I don’t know who Cathie Wood is specifically. Maybe I am ignorant. Because I have always believed that trading is a personal matter and it is not something that can be discussed. Because no one can give you the right answer. There is no right answer in the financial trading market. How can others give you the right answer?
Even truth is only called truth under certain conditions. Without that condition, it becomes empty and ineffective. In fact, in the trading market, it can be said that there are hundreds of schools of thought and everyone is an analyst in the cryptocurrency circle. No one is convinced by anyone else, and no one thinks that the other person is much better than himself. The contempt of scholars is also vividly demonstrated here, which is a good thing. The truth becomes clearer and clearer, which is better than keeping silent.
I do not reject anyone's opinions or trading theories, because these are not the most important. Everyone comes to this financial trading market for the same goal, which is to make money. It's just that the tools and methods used to make money are different. This is understandable and there is no need to argue. However, if you insist on a set of trading theories, you need to persevere. For example, if you choose fundamentals as a trading theory, value investment theory, trend tracking theory, technical analysis, etc., these are the differences in tools and methods we are talking about. This is not important. What is important is the unity of knowledge and action.
Some people say: The way to trade is to correct your mind first, then your ideas, then your strategies, and finally your techniques. From this perspective, technical theories and tactics are placed last, so no matter which method you take, you have the freedom to choose.
In addition, I am not saying that I am a pushover who doesn’t offend anyone. In fact, that is not the case. I would like to ask a question. Do you think there are real market rules in the financial trading market, whether it is the stock trading market or the cryptocurrency trading market? Some people say, of course there are. Everything has its own operating rules. The second question is, if there is such a rule, and if we follow it, wouldn’t we have already achieved financial freedom? You may say that you just haven’t found it, so you are always looking for it and have never stopped.
Or, let's change the perspective. Maybe there is no regularity in the financial trading market. If there is, people would have discovered it in the stock market long ago. If there is, Gann theory would not be sometimes useful and sometimes useless; if there is, the wave theory would not have the saying that there are thousands of waves for thousands of people; if there is, the breakthrough theory would not have the saying of true or false breakthrough.
Choice is more important than effort, and direction is more important than choice. When our direction is wrong, the harder we work, the more exhausted we become, and the further we are from the truth of things. This is a huge problem with the trading mindset, that is, we have a huge deviation in our trading concepts that has led to the current results.
Now everyone should understand why I don't object to anyone's comments. It's just that everyone has different ways and tools to make money, but the goal is the same, and every trading theory and strategy has its limitations. It is useful under certain conditions, but without these conditions it will be chaotic, disorderly, and ineffective.
One thing we can be sure of in this financial trading market is that there is no perfect all-weather trading system, just like there is no perpetual motion machine in the world. Some people, including myself, have been obsessed with trading indicators and tactics, trying to combine the strengths of hundreds of schools for my own use, practice peerless martial arts, be invincible in the world, and live the life I want.
Then, the ideal is beautiful, but the reality is very bleak. The trading systems we use now have their adaptability and inadaptability. There is a saying: Profit and loss come from the same source. That is, you make money because of a certain trading system, and you lose money because of this trading system. There are differences between different trading systems and trading theories. As long as it can make more money and less loss, or can make you make long-term stable profits, it is a trading system worth sticking to.
Of course, it is not the case that the more trading systems you master, the better. Because we cannot believe in more than two trading systems, because there is exclusion and uniqueness between trading systems, just like our belief in religion, which is unique, and the belief itself is also unique. Otherwise, we will be confused and don't know what to do.
Have you ever had a period of time when you feel more confused the more you learn, and feel that you don't know how to judge and analyze the market? Because the martial arts of different schools are concentrated in your mind, which has led to confusion in thinking and loss of judgment standards. When you have no judgment standards or are confused, how can you have ideas?
Sometimes, different schools and trading systems are exclusive and contradictory, just like when we use different indicators, one is bullish and the other is bearish. At this time, you are more contradictory. Even if it is the same indicator in different cycles, one is bullish and the other is bearish. Therefore, the standards must be unified and the trading system must be unified.
Therefore, Su Shi's poem is really exquisite: Looking from the side, it looks like a ridge; looking from the front, it looks like a peak; it looks different from all distances and heights; I cannot recognize the true appearance of Mount Lu because I am in this mountain.
Now, let's go back to the question: when someone leaves a different or even opposing comment on your social media, do you mind it less and get less angry? It would be abnormal if everyone's comments were the same, unless you are using the same trading system.
Back to our topic, which trading system is more reliable? No matter which system, it is not the most important. As long as you stick to it, you can make money. The most important thing is whether you can be consistent, consistent, and integrate knowledge and action. The real test of us and the determination of whether we are novices or experts is the degree of integration of knowledge and action, not which trading technology theory is more effective. This is the real realm of trading.
Therefore, as mentioned in the previous article, the way to trade is to first correct your heart, then your ideas, then your strategies, and finally your techniques. People in the world do the opposite, but end up with half the results with twice the effort.