shiguoming

Trading has nothing to do with IQ.

Many people, including myself, think that trading is a game that requires high IQ and high computational ability when they first start trading; only smart people can make money.

Later, after trading for a long time, I realized that the success or failure of trading is not related to IQ but is more closely related to execution, discipline, and mindset control.

Those who can truly make stable profits in the market may not be the smartest, but they are definitely the most disciplined.

They do not change their trading plans arbitrarily, do not let emotions dictate decisions, and do not become complacent after making money or fall apart emotionally after incurring losses.

The core of trading has never been intelligence, but self-control.

Investment is about doing the right thing and doing things right.
Investment is simple, but not easy—simple in clear principles, not easy in discipline execution and cognitive evolution.

Avoid speculation temptations with integrity, face market fluctuations with a calm mind, and penetrate short-term noise with a ten-year perspective.

One illustration to understand: What is position management, the king of speculation Livermore's breakthrough buying method:
(1) First buy 20%;
(2) Assuming the wrong buy, stop loss immediately at a 10% drop, with a loss amount of 2% of the total position;
(3) Assuming the correct buy, increase the position by 20% immediately at a 10% rise;
(4) Increase another 20% immediately at another 10% rise;
(5) The last increase directly by 40%;
(6) Expand the victory results, and as long as it does not drop below 10%, hold;
(7) Once it drops by 10%, sell all positions immediately.

The essence is to find high probability opportunities to operate, as the market spends most of its time waiting, and the aim should be to minimize trial and error costs.

However, this is suitable for building positions in strong coins/stocks during a bull market, and is not applicable in a volatile market.

1️⃣ What is Jesse Livermore's core investment philosophy?

I will summarize it briefly:
🔺 Trend supremacy: He emphasizes following market trends, believing that there are clear uptrends in bull markets and downtrends in bear markets. Investors should identify and follow these trends and avoid going against them.
🔺 Risk control: He values stop-loss and capital management, setting stop-loss points for each trade to prevent losses from widening, and reducing risk through diversification and position control.
🔺 Independent thinking and patient waiting: He advocates for independent market analysis, not relying on others' opinions, and patiently waiting for the right trading opportunity, such as price breaking through key resistance levels or retracing to support levels.

Wow, I just realized that the panic index has dropped to 10?

Then why hesitate? Just madly buy the spot of $BNB , $ETH , and $SOL .

With an index of 10, it has reached a point where no logic or brain is needed; just buy mainstream coins.

Remember one logic: a panic index of 10 is the lower limit of extreme panic, and the more panicked the market is, the clearer the bottom becomes, and a rebound happens at this time.

If you don’t dare to buy at a panic index of 10, you only deserve to be a retail investor, chasing highs and getting stuck.

In 2020, with a panic index of 10, it directly touched the bottom and rebounded, starting a bull market.

In 2022, the panic index fell below 10, reaching an unprecedented 9, and BTC directly touched the bottom limit and rebounded fiercely from 17600 to 25000.

By the end of 2023, the panic index dropped to 12, followed by the meme frenzy of the SOL chain, where whatever you buy makes money, and there's gold everywhere to pick up.

This level of panic leads to a market frenzy.

It's okay if you don’t understand the market; it doesn’t matter if you don’t know what to buy.

Just remember the nine-word mantra:

Dragon‼️Head‼️Coin‼️No‼️Brain‼️Buy‼️Is‼️Correct‼️

First in line: BNB.

Don’t understand technology, the Federal Reserve, or macroeconomics? Can’t read K-lines?

It doesn’t matter; as long as CZ understands these, it's fine.

BNB is always the first true god in both bear and bull markets: there are profits, buybacks, and ecosystems, with a deep moat.

Buying will never lose; the more it drops, the more you buy, and the more you buy, the more you earn.

Next is ETH. Like BTC, the lower the sentiment, the sexier they are.

The only flaw of ETH and BTC is that they are too expensive, while the rest are all advantages.

This is also why the third choice is SOL, not BTC.

SOL is simply the “mini version of BTC”: the harder it drops, the scarier the rebound.

All bad news is good news for SOL because SOL is the tokenization of sentiment.

Little brother, remember one thing: the pullback of BNB, ETH, and SOL is not called a pullback; it’s called “charging,” aimed at being able to surge more fiercely.

{spot}(SOLUSDT)
{spot}(ETHUSDT)
{spot}(BNBUSDT)

How to Break Through the Confusion of Trading Losses?

Many traders struggle for years and still find themselves going in circles, returning to the starting point. How can one escape this cycle? The issue ultimately lies in mindset.

First, abandon the so-called grand narrative and recognize the importance of serving the small family over everyone.

Second, let go of the idea of achieving fame and success; live for yourself, regardless of whether you succeed or not.

Third, be unconventional, counter Confucianism, and abandon the traditions and teachings that have been handed down to you.

Fourth, pursue full freedom and eliminate limitations.

Fifth, give up things that can bind you, such as houses and cars.

Sixth, remember that life only lasts for 30,000 days; what you should strive for is to live as brilliantly as possible during those days, rather than simply seeking success.

Seventh, get your visa sorted, take the opportunity to travel, abandon the so-called patriotism, and prioritize experiencing the world and enjoying life.

Eighth, let go of the obsession with single income and traditional investments; allocate funds into gold and BTC as risk-resistant assets, not for chasing profits, but to provide an extra layer of freedom buffer for a life of "eliminating limitations and living brilliantly." Consider a trading cycle of 10 years or 20 years, and you will gain clarity.

How to Break Through the Confusion of Trading Losses?

Many traders struggle for years and still find themselves going in circles, returning to the starting point. How can one escape this cycle? The issue ultimately lies in mindset.

First, abandon the so-called grand narrative and recognize the importance of serving the small family over everyone.

Second, let go of the idea of achieving fame and success; live for yourself, regardless of whether you succeed or not.

Third, be unconventional, counter Confucianism, and abandon the traditions and teachings that have been handed down to you.

Fourth, pursue full freedom and eliminate limitations.

Fifth, give up things that can bind you, such as houses and cars.

Sixth, remember that life only lasts for 30,000 days; what you should strive for is to live as brilliantly as possible during those days, rather than simply seeking success.

Seventh, get your visa sorted, take the opportunity to travel, abandon the so-called patriotism, and prioritize experiencing the world and enjoying life.

Eighth, let go of the obsession with single income and traditional investments; allocate funds into gold and BTC as risk-resistant assets, not for chasing profits, but to provide an extra layer of freedom buffer for a life of "eliminating limitations and living brilliantly." Consider a trading cycle of 10 years or 20 years, and you will gain clarity.

In fact, after making a million, there are no secrets in trading.
The secret is:
1. Trend,
2. Inertia,
3. Regression,
4. Repetition.
These are the unchanging laws of the financial market from ancient times to the present,
The reason these laws continue to work is that the participants are always human.
Human nature has never changed.
If the market were all robots, then this market would not have any laws, and no one could make money in the market.
As long as you master these four major laws, you can earn the wealth you desire in any market.
Mastering these fundamental essential laws is the underlying logic and cognition, not the methods pursued by 99% of people; all trading systems are false propositions.
Capital, human nature, and cognition are the essence of trading.

The appearance of these so-called "top traders" winners from Binance…
I know at least 2 of them, who have gone bankrupt in the last month, having made seriously inadequate investments. What are the standards for becoming a top trader?