Bitcoin Feng: The end of technical analysis is probability, and the end of probability is risk management.
When we trade, we should all understand that our profits don't come from one or two trades, but from multiple strategies over a period of time. No one can tell you which strategy will be 100% profitable, and no one dares to claim they will always make money. Many beginners put themselves in a hopeless position right from the start. Before they understand trading, they rush into one or two trades and lose all their capital. They may not understand how trading works or what risk management and stop-losses are, and they may not even know how to read their liquidation price. Then, all of a sudden, their account is empty and their balance is zero. Only then might they stop and think, “Why?” and begin to study trading. This is something many people go through, but I want to ask: Do we really have to suffer a loss before we learn? We can learn from other people’s painful lessons, so why insist on experiencing them ourselves?
Speaking of risk management, what do you think it is? Risk management is a system, and it is also your protection mechanism. The ultimate goal of risk management is to never take a major loss. It takes time and effort for each of us to build up our initial capital, and it often represents a large share of our personal assets. We must never treat trading like gambling. A mature risk-management system must include ways to cut losses. You must learn how to cut losses, get good at it, and be willing to do it. This system should always prioritize protecting your core capital, or at least most of your funds. Losses may happen, but limit them—don't take a major hit. Since losses are inevitable in trading, please keep them small. Anyone who has spent years trading will understand what I mean. Of course, take what applies and leave the rest.
The end of a system is execution, and the end of execution is human nature. This is a very interesting problem. Put simply, it's the difference between knowing and doing. A mature system means you know what to do; the key question is whether you can actually do it. No matter how excellent your system is, if you lack the discipline to follow through and aren't willing to put its principles into practice, you'll ultimately fail because of execution. Why is execution so difficult? Because of human nature. What is human nature? Greed, fear, confidence, overconfidence, unwillingness to accept defeat, regret… You're fighting yourself, so of course it's hard! But you have to fight those emotions; otherwise, you're fighting the market—and if you force it, you'll be wiped out…
The end of trading is cultivating the mind, and the end of cultivating the mind is simplicity. Excellent traders place more emphasis on cultivating their mindset than relying on technical indicators. Top traders have simplified what was once complex. Simplicity isn't laziness; it means you've mastered the underlying principles and built a complete system. Keeping things simple doesn't mean thinking less—don't fall into that misconception. Most people go from knowing nothing, to learning the basics, to getting bogged down in complexity, and finally to simplicity. Where are you on that journey? I hope we can all align our actions with our knowledge and achieve stable, long-term profits. #Futures
When we trade, we should all understand that our profits don't come from one or two trades, but from multiple strategies over a period of time. No one can tell you which strategy will be 100% profitable, and no one dares to claim they will always make money. Many beginners put themselves in a hopeless position right from the start. Before they understand trading, they rush into one or two trades and lose all their capital. They may not understand how trading works or what risk management and stop-losses are, and they may not even know how to read their liquidation price. Then, all of a sudden, their account is empty and their balance is zero. Only then might they stop and think, “Why?” and begin to study trading. This is something many people go through, but I want to ask: Do we really have to suffer a loss before we learn? We can learn from other people’s painful lessons, so why insist on experiencing them ourselves?
Speaking of risk management, what do you think it is? Risk management is a system, and it is also your protection mechanism. The ultimate goal of risk management is to never take a major loss. It takes time and effort for each of us to build up our initial capital, and it often represents a large share of our personal assets. We must never treat trading like gambling. A mature risk-management system must include ways to cut losses. You must learn how to cut losses, get good at it, and be willing to do it. This system should always prioritize protecting your core capital, or at least most of your funds. Losses may happen, but limit them—don't take a major hit. Since losses are inevitable in trading, please keep them small. Anyone who has spent years trading will understand what I mean. Of course, take what applies and leave the rest.
The end of a system is execution, and the end of execution is human nature. This is a very interesting problem. Put simply, it's the difference between knowing and doing. A mature system means you know what to do; the key question is whether you can actually do it. No matter how excellent your system is, if you lack the discipline to follow through and aren't willing to put its principles into practice, you'll ultimately fail because of execution. Why is execution so difficult? Because of human nature. What is human nature? Greed, fear, confidence, overconfidence, unwillingness to accept defeat, regret… You're fighting yourself, so of course it's hard! But you have to fight those emotions; otherwise, you're fighting the market—and if you force it, you'll be wiped out…
The end of trading is cultivating the mind, and the end of cultivating the mind is simplicity. Excellent traders place more emphasis on cultivating their mindset than relying on technical indicators. Top traders have simplified what was once complex. Simplicity isn't laziness; it means you've mastered the underlying principles and built a complete system. Keeping things simple doesn't mean thinking less—don't fall into that misconception. Most people go from knowing nothing, to learning the basics, to getting bogged down in complexity, and finally to simplicity. Where are you on that journey? I hope we can all align our actions with our knowledge and achieve stable, long-term profits. #Futures