1. The essence of trading: Patience and waiting
The market is like picking up money: The essence of trading is waiting for high-probability opportunities, not frequent operations. Waiting with no position is an important skill; the desire to capture every market movement will inevitably fail.

What to wait for: Waiting for opening signals that align with the trading system (like technical patterns, liquidity resonance, support/resistance breakouts), rather than subjectively predicting the market.

2. Core elements of a trading system

Three elements (choose two):
Risk-reward ratio: The potential profit of each trade should significantly exceed the potential loss (at least 1:2).

Win rate: Improve decision-making accuracy through technical analysis (like candlestick patterns, EMA, FVG).
Frequency: Low-frequency, high-certainty trades are better than high-frequency, low-quality operations. Contradictory logic: All three cannot be achieved simultaneously; one must choose a model based on personality (like 'high win rate + high frequency' or 'high risk-reward ratio + low frequency').
3. Risk Management: Surviving is the key to making money
Position sizing based on loss: Each trade's loss should not exceed 1%-2% of total capital, protecting the principal through position control.
Strict stop-loss: Stop-loss is the 'fuse' of trading, avoiding holding onto losing trades and increasing positions on floating losses.
Trailing stop-loss: Gradually move the stop-loss up after making a profit, protecting the profit while allowing gains to run.
4. Trend and trend-following trading without counter-trend:
The trend is the direction with the least resistance in the market; counter-trend operations (such as guessing tops and bottoms) are the main cause of losses.

Trend determination tools:

EMA/Vegas Channel: Prices above the moving average indicate a bullish trend, while prices below indicate a bearish trend.
Liquidity analysis: Institutions hunt for retail stop-loss orders through false breakouts; trend-following trading needs to avoid these traps.
5. The core logic of technical analysis
Strike at key positions: Trade at resonance positions like support/resistance, FVG (Fair Value Gap), OB (Order Block), etc.

Combine large and small timeframes: The larger timeframe determines direction (like daily), while the smaller timeframe finds entry points (like hourly). Volume-price relationship: Price increases must be accompanied by increased trading volume; price movements without volume cannot be sustained.

6. Mindset and cognition
Emotionless trading: Be not greedy in profits and not lucky in losses; execute according to the system rather than being driven by emotions. Accepting losses is part of trading costs, avoiding 'small gains and large losses.'

Focus on your own system: Opportunities always exist in the market, but consistency is necessary, and strategies should not change due to short-term fluctuations.

7. Institutional behavior and liquidity logic
Liquidity harvesting: Institutions trigger retail stop-loss orders through false breakouts, then reverse operations after forming a trend.

Smart money rules: Observe clearing data (concentrated retail stop-loss levels) and reverse utilize market sentiment. Learn SMC, ICT, and understand the underlying operational logic of institutions.

8. Learning and advancement path
From mindset to technique: First read trading mindset books (like 'Reminiscences of a Stock Operator', 'The Random Walk Guide to Investing'), then learn technical analysis (like price action, volume-price analysis, Wyckoff theory, SMC).

Review and iterate: Record delivery slips daily, analyze the reasons for success and failure, and gradually optimize the system. Focus on one skill: Mastering one strategy (like the previously mentioned 2B false breakout, true reversal strategy) is far superior to a shallow approach with mixed strategies.

Trading is a game of cognition and discipline, centered on 'cutting losses short and letting profits run.' There is no holy grail in the market; only through systematic thinking, strict risk control, and continuous learning can one survive and profit in the long term.
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