The secret to long-term profitability

If the attitude towards losses is used to describe the level of a trader, it is difficult to find a more representative one. I don't think anyone likes losing money, but every trader has to deal with it. Because traders have different attitudes towards losses, the problems they encounter are different. It is conceivable that the results will not be the same, and the profit level can be imagined.

Level 1: Refusal to face losses.

This type of traders basically accounts for the vast majority. They like to complain, like to pass the responsibility to others, turn a blind eye to their own mistakes, or find various reasons to prevaricate themselves after making mistakes, and create that they are not wrong. This is human nature. Avoidance is an instinctive reaction brought to us by people in ancient times, and seeking benefits and avoiding harm is a conditioned reflex. In order to cater to this point of view, the market will tell investors that it is value investment, not investing because of value, but investing because of buying. It is ridiculous to believe it. People just believe what they want to believe. Maybe this is also a kind of belief. Under the psychological suggestion, I finally believe that I am right.

The second type of level: try to avoid losses.

It is human nature to pursue perfection. They are constantly solving why they always make mistakes, and then find various ways or learn to avoid making mistakes. I used to be like this. It is very easy to get entangled in transactions at this stage. If you reach this stage, you have made a lot of progress, and you may not be far from making a profit, but it is very difficult to get out of this step. I have experienced the dilemma that this kind of people are very easy to learn. Although traders at this stage begin to learn to fear the market, they also compete with themselves and understand that they are responsible for themselves, but they may also feel pain, helplessness, entanglement, and hesitation because of self-blame.

The third level: the rationality of accepting losses

If you accept the rationality of losses, you won’t be as timid and entangled in trading as the second type, but here traders are usually more important than seeing profits than losses. If you are at this level, I think you can make money , although it is still not perfect, and still retains the second type of thinking, but fortunately, it has to accept losses. Rather than accepting it, it is better to say it is letting go. You have let go exhaustedly. This is what it means to put down the butcher knife and become a Buddha immediately.

The fourth level: Understand that profit and loss come from the same source.

Although many traders may learn or know this concept from different places, it is estimated that there are relatively few who really understand and understand it. In fact, from a micro perspective, profit or loss can only be described by God's will. When you avoid losses, you also avoid profits. As the so-called Tao Te Ching says, the two come from the same place but have different names. Sure enough, our culture is really broad and profound.

Level 5: Go with the flow

I just know this realm, but I still can't understand it. It may be the so-called gain and loss according to fate, and the mind does not increase or decrease. I don't force it, comprehend it, and as my experience grows and knowledge accumulates, I may comprehend it naturally. Sometimes I think that young people and old people say the same sentence, how can the latter possibly contain the same life experiences.