Stably profiting from the market is the ultimate goal of traders. It is the ability to acquire wealth from the market relying on one's own skills without depending on any external help.
Stable profit focuses on stability; it is necessary to keep the capital account in a profitable state for a long time and to ensure that the capital curve continues to rise to achieve stable profits. One or two profits are not stable.
There are three essential conditions for stable profit:
1. A stable trading strategy
A common misconception among traders is the pursuit of making a profit on every trade and wanting to earn a large sum on each. This indicates that the trading strategy is unstable or that there is no trading strategy.
The reason why a stable strategy is needed is to adapt to changes with consistency, utilizing probability to ensure that the long-term profit probability is greater than 1. If the strategy is inconsistent, using one short-term method today, following others later, and then researching other indicators or theories after some time, this represents instability in strategy.
During the short-term exploration phase, different strategies can be tried, but in the long run, a trading system must be solidified, utilized year after year, and refined to become an expert.
2. A stable trading mindset
Anyone who has traded knows that mindset is very important, even more so than technical skills. Trading techniques are not profound; anyone willing to learn can understand them. However, mindset, or trading psychology, requires long-term honing and constant breakthroughs in cognition.
Facing unrealized losses and drawdowns calmly is a compulsory lesson for every trader. Imagine a trader who has already achieved stable profits; they probably would not be anxious enough to lose sleep over current unrealized losses or a few drawdowns.
3. Stable trading behavior
No matter how excellent a trading strategy is, it requires a person to execute it, requiring traders to apply, review, and correct. This process takes time, and backtesting consumes a significant amount of time.
Being able to do a repetitive task day in and day out for years, not just in trading, can lead to some achievements in anything.
However, the reality is that the vast majority of people will be eliminated over time. There are too many reasons and external factors that cause people to give up on persistently pursuing something. But there are also a few who can remain consistent despite all difficulties.
The reasons for giving up may seem very valid and can convince everyone, but they cannot change the fact that they cannot see the light. The sifting of sand leaves only the shining gold in the end. There are no reasons, only results.
