What is the root cause of trading losses?

Why does your trading always result in losses?

Why do you work so hard to adjust your trading system yet still not profit?

Why does your strategy sometimes work and sometimes fail?

What is the crux of the matter?

Today's article should be a summary of all the previous articles, and I believe it is the key point. Interested friends can read it in depth. The above questions are ones that almost all traders have encountered, and I have experienced them too, so I understand the pain.

I have a few points to share:

1. All technical analyses on the market are effective; for the same market condition, different technical analyses can yield similar results. I believe that there is no good or bad technique; what suits you is the right one;

2. Everyone has a different trading style, and suitable timeframes are also different; whether multi-timeframe or single-timeframe, as long as it suits you;

3. Everyone's analytical and processing abilities vary; choosing a simple trading logic is the optimal choice;

4. Integration of knowledge and action is very difficult, almost impossible; choosing easy knowledge and action is the solution to this problem;

The solution to trading losses is to place trading in simple and smooth market conditions, avoiding participation in complex and volatile markets.

Human cognitive and behavioral abilities are limited; complex and volatile markets render trading logic meaningless. Even if you are very skilled and achieve integration of knowledge and action, you cannot profit;

Conversely, in smooth and simple market conditions, you will find that all technical analyses start to become effective, and the profit potential is significant, with knowledge and action aligned.

Traders should not put themselves in complex market conditions; do not burden yourself. Human abilities are limited; profits come from the market, while losses are under your control.

Above all, let us encourage each other! #看懂K线