Path Underlying logic, objective laws; road, direction. Understanding the path: finding a trading path that aligns with objective laws. The market follows the natural law of the jungle; enhance cognition, strengthen oneself, strive to be one of the few predators, backed by time, compounding in the long term. Law Fundamental principles, rules. Risk first, profit second; cut losses when wrong, take profits when right; prioritize survival, then development. If execution is lacking, legislate for oneself, establish rules, and impose penalties if not adhered to. Technique Fundamentals, technicals, and sentiment Fundamentals refer to the impact of capital, policies, etc., on the financial environment, and the supply-demand logic of the asset itself. Fundamentals are qualitative analysis, focusing on long-term positive and negative influences, while short-term news impact is limited. Technicals have many schools. Indicator and moving average school focuses on moving average arrangement, divergence, and entanglement; Dow theory discusses long-term, mid-term, and short-term trends; Elliott Wave refers to impulse and corrective waves; Gann theory looks at segments and key levels; price action refers to swings and trading ranges. The core is the alternating operation of trends and adjustments, plus the nesting of large and small cycles. In specific operations, it involves direction, position, and timing. Sentiment refers to greed and fear. Retail investors often feel greed at high levels and panic at low levels, while major players often manipulate retail sentiment using news at high and low levels. The operational principle is encapsulated in Buffett's classic saying. Tools Instruments. Leverage is a double-edged sword. If position is insufficient, leverage comes into play; leverage is a double-edged sword—when used well, it is a tool for wealth; when used poorly, it can lead to liquidation. Two steps: one, a positive expected trading strategy; two, long-term repeated execution. #交易训练
If you've been in the crypto world for a long time, you've definitely heard a big shot say, "Trading is gambling; there's no real skill involved." That's right, the essence of trading is gambling; you are betting your capital on uncertain returns. The uncertainty of returns (positive/negative, large/small) determines the nature of the gamble, just like marriage—if you choose the right person, you'll lead a happy life; if you choose wrong, it can be chaotic. Anything with uncertain outcomes and probabilities has a gambling nature. Trading has the nature of gambling, but it is not gambling; the difference lies in probability and cost control. Most retail traders turn trading into gambling because they initially lack profitability (losing their probability advantage) and invest too much (high costs). After suffering large losses, they seek mentors or teachers, getting scammed repeatedly, slowly depleting their capital and leaving in shame.
Give up on illusions and face reality The trading market carries massive wealth and presents infinite opportunities. But the market is not designed for retail investors to get rich; rather, its purpose is to harvest retail investors. Entering the market may seem like a step closer to wealth, but in reality, it brings you a step closer to death. According to exchange statistics, less than five percent of users achieve positive trading results over three years, highlighting the brutality of the market. For those who spend their days analyzing and predicting the market, sharing profit charts as eternal profit masters, you likely have your own judgment. The market follows the jungle law of the survival of the fittest. If you want to achieve results here, you must recognize reality and give up on illusions, stop fantasizing about becoming the chosen one and getting rich overnight, and not limit yourself to the gains and losses of current trades. Instead, plan your trading journey from the ground up, striving to be among the less than five percent of long-term profit makers.