Can reading thousands of books really make you trade successfully?

Thanks Qing for the invitation. Reading is a very good habit, and it is an effective step that can make us progress and slowly step into a higher level, but how to read? How to study? Only then will it be effective, which is the key we need to discuss.

The first step is to let reading and experience go hand in hand. The ancients said that reading thousands of books is not as good as traveling thousands of miles. In fact, the inner meaning of this sentence does not mean that it is better for you to walk more than to read books, but to tell you that sometimes you need a certain experience to understand the true meaning of the book. Many people nowadays hate poisonous chicken soup, thinking that these chicken soups are useless. I know the way, but I still can't live a good life. But are inspirational words really useless? This depends on your experience. Some people have no feeling for some words, but some people immediately burst into tears when they see these words. Why? Because what was written in the book hit a certain period of his experience, thus deepening his impression and motivating himself. The same is true in trading. Let me give you an example. I believe everyone has heard of the book "Memoirs of a Stock Operator". After reading it, I learned almost nothing from it, I think it's just a Livermore trade biography, a novel. What I have a slight impression of the opposite is only the plot of his failure and rise, nothing else. At that time, I thought this was also a god book in the trading world? During this period, I was still trading, and of course I was reading other books. When I read Qingze’s "A Dream in Ten Years", Qingze spoke highly of the memoirs of a stock operator, and took out the book He made some explanations for some of his points of view. At that time, I read this book, why didn’t I have any impression at all, and then this part of his explanation talked about the news that Livermore let the cotton king at that time in the cotton market, It led to a rout, which directly hit my experience, because my trading level was very poor at that time, so I searched for news everywhere, and then lost money. Later, when I read Liu Qiang's "Futures Operator's Wind and Cloud Records", the second half of it was a detailed analysis of the memoirs of a stock operator. It talked about taking strong stocks if you want, because the trend is very powerful. It was a miserable job of hunting the bottom and finding the top, and then he said that you should not get off easily when you get a strong stock, because if you go down, you will not be able to get back up. My experience has been hit again and again. Then I re-read "Memoirs of a Stock Operator" and found many things that I didn't notice the first time. It is really a magical book. Therefore, reading can change us, but at the same time, we have to experience more and hone more in the market.

Second, don't read too much across the board. We have been told from our childhood transactions that you have to go back to addition, subtraction, multiplication and division first, and then slowly learn simple functions, until you get to advanced mathematics in college. This is done step by step. The same is true for reading. You need to improve your level step by step and improve your cognition. If you want to read a high-level book at once, you will not be able to understand many links. There is a sense of repulsion. For example, the book "Trading for a Living" mentions the application of many indicators. This book is a good book explaining the advanced application of indicators, but many people feel sleepy after reading it. Why, because the basic I don't understand algorithms, and I can't read this book at all, so I should read Murphy's "Technical Analysis of Futures Market" first, which is the big blue book. Only by having a preliminary understanding of all indicators can we move forward. Some people just read some books on trading psychology and trading mentality. You haven’t even built your own trading system. The mentality is so good, the technology is poor, can you make money? Therefore, we must first give ourselves a clear positioning, let ourselves move forward step by step, and truly understand, it is our own, and there are no castles in the air.

Third, we must learn more in the process of reading. Still take the book as an example, "Turtle Trading Rules" is a book that I recommend in many articles. I believe many people have heard of this book. In fact, the essence of this book is to talk about a trend trading system. One page can be written, but why does the author use a book to write? This needs to be comprehended in the process of reading. The author wrote in such detail because he explained all the details of this trading system, including the process of how to build it, and even where the shortcomings of this system are, and how to read it during the unfavorable period. But, it's all said. If we understand it in detail, it will be of great help to build a trading system for ourselves.

Fourth, when our cognition improves, we must have the ability to identify bad books. There is only so much human time, so we shouldn't waste our experience on some bad works. Since we want to be efficient, we have to spend our time wisely. Therefore, when we read books, we must also develop our own ability to identify. When we read a lot and have rich experience, although we may not be able to achieve the ability to write and publish books, we should have the ability to identify bad books. Our own cognition is already obvious. It is higher than the content of the book, or the person who wrote the book is someone with ulterior motives. We must eliminate him, so we should stop wasting time on it. We have more important things to do.

Reading has been a good habit since ancient times, but now the Internet is too developed. The advantage is that there are rich channels for knowledge acquisition, but the disadvantage is that the voice is too noisy. Good reading, reading good books, has always been a good channel for ordinary people to grow.

Are you satisfied with this answer?