The financial market is a place full of fantasy, giving people unlimited reverie, but also giving people unlimited torture. Trading is like a mirror, projecting all the ugly things about human beings and ourselves. In the arena of this game, only by having a deep understanding of it and yourself can you live in it for a long time.
For a trader, operating funds and trading technology are the two most important things, but they are also two contradictory things. Some people have funds but no technology; some people have technology but no funds. Do you think you can have your cake and eat it too?
Next, please broaden your horizons, and you will see that the root cause of the inability to succeed in trading is that traders lack the ability to plan their trading careers, lack long-term and effective persistence, and increase leverage on their own risks. All games are lost.
If there is not a lot of money in the transaction, the trader cannot make enough money to satisfy his spiritual and physical pursuits. When ideals and reality contradict each other, traders have to violate the trading risk guidelines to make big gains with small funds. This is a true portrayal of many small funds.
Small and big means that leverage is constantly increasing. You can see that brokers now provide at least 400 times leverage, and some even 2000 times. This is really surprising and sad at the same time. A trader wants to earn a 30% annualized return and a 300% yearly return, who can obtain a safe and stable return? I think the answer is self-evident. The difference that leads to this result is the scale of funds.
If you have a capital scale of 1 billion, you can choose Nianhua's 30% rate of return. When you only operate 2 million, the annualized rate of 300% is not enough for you to satisfy your desire. To sum up, everyone is clearly aware that under the circumstances of risk and leverage, most traders who aspire to a trading career eventually give up. No matter how time-consuming and laborious you have worked, in the end it was nothing to fetch water from the bamboo basket. When you didn’t give up, the basket was full of water. You always felt that you could do it. When you picked up the basket, you would clearly see that there was nothing in it.
So when we evaluate a trader, don't look at the short-term performance of his account. There are many difficulties and challenges in the trading business. It is not easy to survive, and it is not easy to be successful. However, many people want to achieve financial freedom at a young age, and eventually give up the long-term strategic layout.
This reflects that layout ability and transaction ability are two very important abilities for a professional trader. Possessing the ability of long-term layout can enable us to get rid of the gambler's dilemma and eventually succeed. There are very few people who achieve success in life solely by trading, and this is not our first.
Many people should have read the book about Buffett. What I admire the most is its idea of snowballing. To trade, you need to find a long enough slope and keep rolling, so that the ball can get bigger and bigger. Do you know what Poe is? It is a kind of potential energy, and the transaction must follow it. Everyone please remember that the slope is very important and must be long, otherwise the snowball will not roll too much and will stop soon. In addition, potential energy and slope are a kind of strategic layout ability.
If you are a beginner and short of funds, you should be soberly aware that this is a normal phenomenon. In order to make your account show geometric growth, long enough time is essential, so that you can make your own account, make your own personal brand, and then people will be willing to invest in you. Now many people have not read the book It is abhorrent to buy a few books and come out to deceive people if you don't understand them. We all know that Buffett's envoy started to make great achievements in his 40s, and now it has lasted for more than 50 years, which is amazing.
Do you dare to show your long-term strength from the age of 40? Who has the willpower to persist in doing it for fifty years? Over so many economic cycles, the market has experienced all kinds of waves, and it is still able to survive and steal an annualized income of 20%. Dare you and I not admire it?
I personally think that evaluating whether a trader is good is not based on how outstanding his performance is in the short term, but whether he can be stable and sustainable for a long time. This is where mediocrity and excellence lie. In addition, you have to be slow in trading to reduce risks. After a long time, the snowball will naturally speed up and get bigger and bigger.
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