GM Sober talks about options on November 15th

The profit of the transaction is the victory of the entire system, which needs to be cleared. A slight problem in any link will cause a huge difference in the results. The so-called slightest difference can make a huge difference. So it is easy to fail and extremely difficult to make a profit. To do a good job in trading, you need to understand the following 10 aspects.

1. The profit of trading is the result of the improvement of cognition and the breakthrough of thinking mode.

Trading is not something normal people can do, and those who can make stable profits are basically not normal people. To make long-term and stable profits from trading, you need to get out of the control of desires and emotions. To do this, we need to be aware, improve our cognition, and change our thinking patterns. It is to shift from binary opposition thinking and deterministic thinking to unity of opposites and probabilistic thinking. The thinking mode of unity of opposites and the thinking mode of probability are not something that ordinary people can possess. A gentleman must break the shackles of traditional popular secular cognition and values ​​on himself, and no longer evaluate external things in terms of right or wrong, good or bad. What he sees is the pros and cons, and what needs to be done is a choice.

2. Have an overall and overall view.

That is to say, the problem must be viewed comprehensively, with both height and depth, breadth and distance, and at the same time, the dimension of emotion and dreams must be added. In this way, you will have an overall view and be able to look at problems more realistically and objectively. You won't get caught up in the local situation like a blind man touching an elephant. The three major elements of trading are market funds and traders. The vast majority of traders are trapped in the market and ignore the analysis and research of the other two most important factors.

3. You must have the ability to see through appearances, have insight into the nature and laws of things, and be able to distinguish between primary contradictions and secondary contradictions.

The trading market has two sets of operating rules that interact with each other, one is Yang and the other is Yin. Yang is the superficial rule, which is the law of market operation; Yin is the essential law, which is the rule of human nature. What plays a decisive role are the rules of human nature. But most people don’t see this rule. Lin Yuan once said that many people think that I make money by researching and analyzing the market and stocks. In fact, I make money by researching and analyzing myself. The reason why I can make money is because I can manage myself well.

In other words, analyzing and studying the market, learning technology and trading systems are secondary contradictions; studying the shortcomings of one's own human nature, controlling emotions and desires, and overcoming greed and fear in human nature are the main contradictions.

3. Trading profits do not necessarily come from correct judgment, but they must come from risk taking.

The profit of every transaction is essentially the result of the potential loss you can afford. On the surface, it seems that your profits are brought about by correct analysis and predictions and your trading technology and trading system, but this is just an appearance. In essence, it is obtained by your ability to take risks. The most fundamental determinant of how much profit a trader can make on a transaction is how much loss he can bear!

4. Trading is looking inwards, and studying yourself is much more important than studying the market.

If you go in the wrong direction, your efforts will be in vain. One of the most important characteristics of getting started with trading is to shift from studying the market, studying technology, and studying systems to studying yourself, turning inward, focusing on improving your own cognition, and developing the personality traits needed for successful trading.

6. Trading is one part luck, two parts technology, and seven parts mentality.

Training the mind is better than practicing skills. The essence of practicing skills is actually to train the mind and let the kung fu take over the body.

7. The core and most important aspect of trading technology is the management of funds.

Although the establishment of trading rules and the quantification of entry and exit standards are very important, they must be based on the logic of fund management.

8. The most essential law of the market is uncertainty, and all other laws in the market must be subordinate to this law. We must emphasize uncertainty and at the same time pursue certainty as much as possible. This may seem contradictory, but it is actually the unity of opposites.

9. In trading, most traders lack patience. Patience is the magic weapon for profitable trading.

But patience is essentially a kind of wisdom. It can only be acquired with the improvement of cognition and the ability to see through the essence and laws. Patience develops slowly under the premise that you can control your desires. You can only have patience when you don't have much desire to make money. If you really want to make money and have a great desire to make money, you won't be patient.

10. There are no secrets in trading, it’s all about execution.

There is nothing new under the sun. The duel between masters only occurs at the level of the state of mind. Only with a good mentality, stable emotions, inner peace, unfazed by favors and disgrace, can the Taishan collapse in front but remain unchanged, the elk rise to the left but not blink, can you have complete execution ability and ability. Calmly strategizing and arranging troops. If you cannot control your emotions and desires, and your emotions continue to fluctuate with the fluctuations of the market, you will not be able to execute. Because all human actions are directed by the conscious mind, especially when interests are at stake, your actions are controlled by the subconscious mind. We must cultivate the eighth consciousness, which is the higher-dimensional self to control our subconscious.

With improved cognition, you will not be overly greedy or act rashly; if you control your desires, you will have wisdom, and with wisdom, you will have patience; if your mentality is stable, your emotions will not fluctuate, and if your emotions do not fluctuate, you will have the ability to execute. No matter how small the order is, it should be done as the last order in your life and develop a good self-discipline habit. Trading habits are everything. Failure to develop good habits is a failed trader.