The ultimate goal of traders is to make stable profits from the market. This is the ability to gain wealth from the market by one's own ability without relying on any external help.
The key to stable profit is stability. It is to keep the capital account in a profitable state for a long time and the capital curve continues to rise, which is stable profit. Profits once or twice are not stable.
There are three necessary conditions for stable profitability:
1. Stable trading strategy
A common mistake among traders is to pursue profitability in every trade and to make a lot of money in every trade. This shows that the trading strategy is unstable or there is no trading strategy.
The reason why we need a stable strategy is to keep constant in the face of ever-changing situations, and use probability to make the probability of long-term profit greater than 1. If the strategy is erratic, you use a set of short-term tactics today, and then start following orders after a while, and then start studying other indicators or theories after a while. This is instability in strategy.
You can try different strategies in the short-term exploration phase, but in the long run, you must solidify a trading system and use it, improve it, and hone it over the years to become a master.
2. Stable trading mentality
Anyone who has ever traded knows that mentality is very important, even more important than technology. There is nothing mysterious about trading technology, as long as you are willing to study hard, you can understand it. But mentality, or trading psychology, requires a long time of training and continuous breakthroughs in cognition.
How to calmly face floating losses and drawdowns is a compulsory course for every trader. Imagine a trader who has achieved stable profits. He probably won’t be so anxious that he can’t sleep because of the floating losses or several drawdowns.
3. Stable trading behavior
No matter how good a trading strategy is, it still needs people to execute it, and traders need to apply, review, and revise it. This process takes time, and backtesting takes up a lot of time.
Being able to do a repetitive thing day after day for years or even decades, let alone trading, you can achieve something no matter what you do.
But the fact is that most people will be eliminated as time goes by. There are too many reasons and external factors that make people give up on something. But there are a few people who can overcome all difficulties and remain consistent.
The reasons of the person who gives up may be very sufficient and can convince everyone, but it cannot change the fact that he will not see the dawn. After the great waves wash away the sand, only the glittering gold remains. There is no reason, only the result.