Have you seen the essence of stable profitability?

Exchange circle for high-probability trading crypto enthusiasts
邵悦华

A new classmate in the classroom recently asked me privately, "Teacher, what kind of state is a stable profit? How should I study and work hard to achieve a stable profit?" Looking at the historical records of our official account, we have also introduced many good learning methods before.

But this question also caused me some thinking. I hope that through thinking and sharing, new students and netizens can better understand stable profitability. The first thing I think of is what is the essence of stable profitability.

We often joke about a phenomenon-profit depends on luck, and loss depends on strength. This may sound funny and slightly witty, but this is the true portrayal of how many novice traders.

No matter how new a novice is, even if he has never touched trading before, if he participates in trading on the first day, he may make a profit. This kind of profit is accidental, random coincidence. What we want to share with you today is some understanding behind sustained and stable profitability.

Those who make sustained and stable profits may have a deeper understanding of the nature of profits, but traders who are new to the market feel very mysterious about sustained and stable profits. In the eyes of many novice traders, stable profits must have knacks, and they must have some profound and profound knowledge. A special method that is not known to outsiders.

Then let's see what kind of "door" this special method is from the perspective of stabilizing the essence of profit

In fact, stable profits are just a sign. Stable profits can be shown by a continuously rising capital curve and continuously growing net profits.

Both curves and numbers are appearances, which are far from explaining the essence of stable profitability. Stable profit means that traders can continue to obtain income and can always maintain a reasonable increase in profits in various market environments.

But stable profit is only a result, and it cannot reflect more information behind the state of stable profit.

The essence of stable profitability, I think, should have two aspects:

Essence 1: The essence of stable profit is the victory of ideas.

Whether a novice trader or a seasoned and mature trader, whether he is aware of or unaware of the existence of trading concepts, any trader will form a concept towards the market, and these concepts will ultimately affect the trader's behavior.

For example, some traders believe that the market rewards those who are timid and bold. This kind of concept will lead traders to take a big gamble.

Another example is in the risk control section, some traders think that most of the market is turbulent, there is no need for stop loss, and the market will eventually oscillate back. Side trend liquidation out. What are the concepts of winning with stable profits? It is a combination - at least there are aspects such as following the trend, strict risk control, and a reasonable risk-reward ratio.

Essence 2: The essence of stable profit is the success of execution.

Many traders do not have a trading system that can make stable profits, or do not accept the correct trading concept. They understand the truth, but they just cannot achieve stable profits.

The crux of the problem is implementation bias. For example, if the system shows that the risk-reward ratio of a transaction is unreasonable, you should wait and see for a better opportunity. However, some traders couldn't bear to open positions to chase the market when they were executing, and were stopped out of the market during the adjustment, resulting in losing money by making wrong trades in the right direction. Those who make stable profits can be strict in discipline and resolutely follow the instructions of the system.

Therefore, we suggest that novice traders should think clearly about the essence of stable profit when they first come into contact with trading, establish a correct trading concept, always keep working hard on the right path, and cultivate self-discipline and execution ability at the same time.

Of course, welcome to follow me, which will make your pursuit of stable profits easier, simpler and more efficient.

Copyright reserved to the author

Last updated: 08/23/2023 05:07

795 Upvotes
7 Comments
Add
Original
Related questions
About Us User AgreementPrivacy PolicyRisk DisclosurePartner Program AgreementCommunity Guidelines Help Center Feedback
App Store Android

Risk Disclosure

Trading in financial instruments involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Any opinions, chats, messages, news, research, analyses, prices, or other information contained on this Website are provided as general market information for educational and entertainment purposes only, and do not constitute investment advice. Opinions, market data, recommendations or any other content is subject to change at any time without notice. Trading.live shall not be liable for any loss or damage which may arise directly or indirectly from use of or reliance on such information.

© 2025 Tradinglive Limited. All Rights Reserved.