After many years of trading, it is discovered that what remains unchanged is the market, and what changes is the state of mind. He who conquers himself conquers the world!

01

Once young and fond of chasing dreams, with a heart set only on flying forward, in the blink of an eye, more than ten years have quietly passed. Suddenly looking back at the way I came, the vicissitudes and bull-bear transitions of the past are no longer a matter of discussion. After many rounds of long-short games and the ups and downs of the stock market, looking at the sea where the rise and fall meet again, even if there are more winds and clouds, and golden spears and iron horses, they will eventually dissipate with the rain and wind. However, the cycle of the market has never changed. After many years of trading, it is found that the iron camp is like a flowing operator, the market remains unchanged, and the state of mind changes. He who conquers himself conquers the world!

02

How many people come to this market with determination, looking at the red and green plates, and can't help but be in high spirits and ready to make a big effort. In their hearts, they have already planned how to dispose of the wealth after profit, but the reality is always so ruthless. Almost without exception, everyone finally throws the principal into the market and leaves the sadness to themselves. The place where the dream begins has become the grave of hope, and one successful person after another has failed here, because after all, this is a negative-sum game, and only a very few lucky people are favored forever. As long as the market exists, this curse will not be broken!

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Being in the vast stock market, for those who are deeply involved, it is a wise move to withdraw early. The trading process may just be a part of their life journey; in this limited space-time world, finding the true self is not an easy thing. The real answer only exists in everyone's heart.

03

In the world of trading, there are various types of trading methods and schools, with different forms and new patterns. Counting on one's fingers, there are trend-based, intraday short-term, arbitrage hedging, programmatic, quantitative high-frequency, artificial intelligence types, and perhaps other types that we can't imagine in the future. However, all rivers converge into the sea, and all things return to their origin. Everyone uses their best efforts to make a profit, as the saying goes, the world is bustling for profit, and the world is bustling for profit. Through the appearance, the essence of the trading world is the same as the rolling world of mortals! It's just that the forms, methods, and routes are different, and all kinds of people and phenomena are born from the heart. The heart is the world, just like Ren Woxing said to Linghu Chong in "Xiaoao Jianghu": The heart is the river and lake, where there are people, there is the heart, and where there is the heart, there is the river and lake. How can you withdraw from the river and lake?

People who come to the trading world dream of making a profit, which is an undeniable thing. A gentleman loves wealth and takes it in a proper way; on the road of seeking the way, they always have to find their own trading path in the complex. The establishment and nirvana of the trading system is a process from simple to complex, and then from complex to simple, which is destined to be an extraordinary process. The essence of success is actually to maintain a detached state, and to achieve and continue this state, there needs to be too much sweat and transformation to realize it. Habits become natural, and it is not something that can be formed casually. This goal itself is a small probability event that surpasses tens of millions of people. The door to hell is wide, and there are too many people walking in it; the road to heaven is narrow and hidden, and only a few people can pass. Standing alone on the high building and looking at the end of the world, the clothes are gradually wide and never regret, for the sake of the person, the person is haggard, suddenly looking back, the person is in the dim light, these situations seem to be the common sigh of those who have ambition and success for thousands of years!

The longer you trade stocks, the more you feel that to survive in the stock market, what you need is not to master how many technical indicators, but to establish the correct concept, that is, the stock market tests your character.The stock market is unpredictable, and no investor can guarantee that they will always be invincible in the market. There are many excellent investors in the market, and their investment strategies and methods can be used as references. However, it is crucial to understand that even the essence of others' ideas always belongs to them. The most important thing is to find the most suitable one among the vast array of theories and transform it into your own investment style. This requires a long-term accumulation of practice. Therefore, after entering the actual combat, investors must pay attention to the accumulation of knowledge and the integration of knowledge. They should continuously adjust their investment strategies according to their preferences, and over time, they will definitely form their own investment style.

In trading, we need to overcome the two most common psychological emotional obstacles:

1. Greed

In the stock market, overconfidence is an invincible feeling. You think you can succeed in any transaction and easily make a lot of money. You are carefree and have a "what's this" mentality. You have a blind belief and turn a blind eye to risks. In this case, excessive ambition is overconfidence in your ability and method of making money. When ambition reaches a certain level and decision-making becomes a compromise, it means that greed has appeared.

You start to pay more attention to wealth and your account balance, rather than percentages or price trends. You don't want to miss a big opportunity and enter greedily to prevent the trend from continuing, but it's too late to enter. When you see other traders making money and you also want to make money, a sense of panic arises. You eventually chase the price and defend a worse price because the opportunity still "feels right." So you rush into a transaction, but as the transaction becomes fierce, your judgment becomes more blurred. Thinking about your imminent victory and indulging in your own cleverness, you miss an obvious closing point.

What happens next? You eventually make a decision that you know is wrong in the long run, but you can't control yourself. You are driven to find the best entry and exit times to earn high returns and profit from every transaction. There is an insatiable desire that can never be satisfied, and this desire now needs money. Its intensity makes you turn a blind eye to risks. But the market often punishes you most for trying to squeeze every penny out of every transaction and maximize profits.

2. Fear

When you are not clear about how to make money, what transactions to make, or whether the loss is due to mistakes or bad luck, higher uncertainty is inevitable. This uncertainty will cause more and more tension, doubt, and fear, which will lead to your trading decisions not being based on predetermined trading strategies or plans, but on the limits of your psychological endurance. Many traders close positions not because of stop losses, but because they are afraid of further losses or the loss of profits, which leads to a psychological breakdown that they cannot bear. At that moment, they feel that closing the position will no longer expand the loss or reduce the profit, and they can be relieved.

Therefore, how to solve certainty is the antidote to fear. I am not saying that the ultimate goal is to always maintain certainty. This is simply unrealistic. On the contrary, what I want to say is that certainty and fear cannot coexist, and uncertainty is the breeding ground for fear.Here is a relatively good method—always try to make the worst-case scenario at any time. This is to use this point to reduce your estimate of the severity of the things you worry about. Then, when you feel your mind is stuck in thinking about the worst-case scenario, tell yourself why it won't be so bad. Think constructively and think about what you can do now to achieve your goals.

In other words, if the worst-case scenario really happens, you will find a way to understand it and move forward. Going through this process will not be fun, but it won't be that bad. You can't know what will happen in the future, whether it's positive or negative. However, no matter what happens, you will do everything you can to live better, just as you have done in the past.

It's also worth noting that disasters can bring innovation and adaptive changes. For example, traders were blown up and had to temporarily do a new job. In that job, a new perspective on the value of emotional stability was born, and discipline was improved. When he started trading again, these improved skills became a catalyst for long-term success. No one can predict that their path to success will meander through disasters, but this may be exactly what they need.

Finally, emotional control is not the best way out—resolving the problem is. In any game, we will develop strategies to help ourselves achieve goals. But for psychological games, traders set their goals too low. They think the best strategy is to control their emotions, but controlling emotions is not the way out, it is a long-term and arduous task.

Before trading, you might as well ask yourself these four questions: Why buy, why not buy, why sell, why not sell?

Opportunities from the decline

Opportunities, first of all, come from the decline, including the decline of the overall market and individual stocks. Faced with the same "high platform diving", some people are scared to death, and some people feel that opportunities are coming. There are three typical investors: one is panicked, cutting flesh and fleeing for life, as a result, those very precious chips are given to others, missing a rare investment opportunity; the second is calm and composed, choosing to stick to it. This kind of investor's mentality is relatively peaceful, and now they have reduced losses or turned losses into profits, some have made profits; the third is to seize the opportunity and buy low. For these investors, the decline of the overall market and individual stocks is an opportunity to buy stocks. They believe that rising and falling is the eternal law of the stock market. To make a profit in the stock market full of risks, it is not only necessary to "pocket" in the ecstasy of most investors, but also to "pick up" in the despair of most investors.

Opportunities from the riseFalling is an opportunity, and rising is even more of an opportunity. In stock market investment, nine out of ten people hope for the stock market to rise, as only rising and soaring can fetch a good price. For investors who want to sell stocks, rising is an opportunity; for those who want to buy stocks, rising is also an opportunity. When the market and individual stocks just start to take off, most people find it difficult to discern the real intentions of the main force, the operating trends, and the leading sectors and stocks that start first. At this time, the stocks that rise first are often the ones with the greatest opportunity. When the market has risen to a certain extent, and the sectors and stocks take turns to rise, those sectors and stocks that have been in a dormant state for a long time, once they increase in volume and rise, are also opportunities. In terms of the timing of purchase, it is an opportunity to intervene in the first time when the target variety starts, and it is also an opportunity to buy low in batches in the subsequent pullbacks of these varieties. Generally speaking, compared with the opportunities that come out of "falling", the opportunities that come out of "rising" are easier to be found and easier to grasp.

The main rising wave market is an absolutely indispensable market. There are two types of investment methods in the stock market that cannot be missed: one is to buy low in the stage when the overall trend has not started; the other is to chase the rise. The operation of chasing the rise must have a well-planned investment plan and adopt appropriate investment skills:

The types of stocks to chase the rise. Investors need to change their thinking when selecting stocks in the main rising wave market, and they can no longer completely stick to performance, growth, price-earnings ratio, etc. for investment. Instead, they should select stocks in conjunction with the upward trend. Specifically, it is necessary to choose individual stocks with more profit opportunities.

In addition, investors should not immediately chase the rise when they see individual stocks rising with increased volume. Sometimes, even if the trading volume of individual stocks suddenly increases dramatically, if the funds are only short-term speculative funds with strong liquidity, then the market is often not sustainable. Therefore, investors must conduct a comprehensive analysis of the incremental funds, and only when the incremental funds of individual stocks belong to strong mainstream funds, can they chase the rise.

The fund management of chasing the rise. Even if the market outlook is optimistic, investors should not use the method of full position chasing the rise. A prudent approach is: investors can use half of the position to chase the rise, and the other half of the position to make a difference by appropriately buying high and selling low according to the fluctuation rules of the market. Since there are already half of the chips in hand, investors can implement the "T+0" operation in a disguised way, obtaining the maximum profit in a rolling operation while controlling the position.

The profit target of chasing the rise. During the process of chasing the rise, it is necessary to set a profit target based on the changes of the market situation. When setting the target, it is necessary to consider the specific environmental characteristics of the market, start from the actual situation of the market, study the upward attack power of the market, and finally determine the profit target. When reaching the profit target, it is necessary to resolutely stop winning, which is an important means to overcome the heart and control excessive chasing the rise.

Risk control of chasing the rise. Since the operation of chasing the rise has relatively high risks, the control of risks is particularly important. Once the overall situation fluctuates or individual stocks stagnate, it is necessary to ensure that they can withdraw immediately.

The ultimate state of stock trading is to choose the location of the store, rather than the decoration of the store.

For me, stock investment is a game of probability. However, mathematicians and economists find it difficult to play well, because to play this game of probability well, it is necessary to control and adjust our innate human weaknesses. The vast majority of scholars do not have good self-control.

If you want to make a profit, then buy the best stocks and forget about it.