The secret to trading is to have no rules! The secret to being invincible is...

This is a painstaking summary of a veteran trader's trading experience over the years, and also reveals the secret of being truly invincible in the market. The core is light positions, following the trend, accumulation, adding positions, stop loss, holding positions, and morality!

1. Ways to Profit

The so-called fundamental or technical analysis and the various things analyzed are only used to be verified, not for serious predictions. Never believe in predictions (I think it means not to guess) - because there are too many subjective biases in predictions, because predictions are illusory futures, because predictions are the focus of fear, and because predictions actually represent uncertainty, so don't believe in any analysis. The price movement is either up or down, which stipulates that you should learn to trade in either long or short positions (this sentence is a bit arbitrary. The price movement mode must first determine the cycle. In a certain time period, we say that the price movement mode is: 1. In the case of an uptrend or a downtrend, it is a rise-adjustment-rise to a new high. Or it is a fall-adjustment-fall to a new low. 2. In the case of a reversal, if the rise-adjustment-rise cannot reach a new high and turns to a new low within the cycle, it will turn into a downtrend. Or if the fall-adjustment-fall cannot reach a new low and turns to a new high within the cycle, it will turn into an uptrend.)

2. The highest virtue is to do nothing and not to do anything

Can you drive? No! Can you walk? Yes! That's it. If you want to reach a destination, you must first find the road, then drive or walk on it, instead of walking around. Remember, you don't open up the road and reach the destination by accident, but you see the existing road and then walk along it to reach the destination (a good metaphor). To place an order, you must first see the market and then follow the market - here you don't dare to be the first in the world, it's not about prediction, nor fantasy, you have to follow and move later; then let the market lead you for a distance, and you will make a profit. How far can the market go? I don't know. How long will it take for the market to pull back? I don't know either! Wait. In this way, you will make fewer mistakes. If you start to predict the price distance or the length of time, or lose patience, worry about losing profits, and leave the market too early, it means that you have left the road, then you will fall into the trap on the side of the road, and at this time or the next moment, you will definitely make a mistake, and a big mistake (this is the key, please remember it again and again).

3. About holdings

Holding a position has nothing to do with time; it is also rarely related to the distance of price movement. If there is any correlation, it depends on whether the boundary of price movement has been reached or is about to be crossed. The boundary of price movement is actually very easy to identify. In the charts of more than 15 minutes, yesterday's high and low points, the high and low points of the previous few days, the boundary of the large moving average, etc., are almost marked. You can draw lines by yourself and it will be clear at a glance. Don't think hard and doubt by yourself. K-line movement is so simple, but you make it complicated and make yourself confused. How can you not lose money? Holding a position has nothing to do with your patience, personal emotions, including your expectations or doubts and other psychological activities! If it is relevant, you have already started to lose money. Think carefully about how you drive or walk. If you can't think, then get on the road, and think about the relationship between your legs, the road and the destination while walking. Taking a step is your trading behavior; the road is the path and direction of price movement; the destination is the boundary of price movement and the end point of your trading profit (it should be noted here that the destination in life is always known in advance, but it is best not to explore the destination of price movement in advance, just follow it). Walk for a while and imagine slowly who comes first and who comes later, and who determines whose behavior. Don't be anxious to take a step too early, and don't worry about wolves in front and tigers behind. Price movement will have a path process-trend. The trend itself is a combination of distance and time extension, but this is a dynamic process. The size of the trend (to be determined within what week period) cannot be pre-defined or analyzed and judged prematurely by time and price difference. At least, this is the case for most of the market. Moreover, traders do not need to make preconceived judgments. In fact, the transaction that follows is the correct transaction. And holding a position has nothing to do with price difference and time difference. If you are in sync with the market, you will make a profit. Do you have to have exact data such as how much US dollars you make and how long you hold a position to be satisfied? That is simply impossible and unnecessary. Don't worry about the trend and the size of the profit, just follow the market. The simplicity of profit lies in just following the price movement instead of fighting against it.The market trend has nothing to do with you. Will it pay attention to you if you fight against it? Therefore, if you follow the wrong direction, you should get used to turning around easily. But most people are overwhelmed with worries and burdens, unable to turn around, and end up making mistakes and regretting their mistakes.

4. Simplify your behavior

Read books continuously (don't read contradictory books), don't stop thinking, don't leave your action practice, in your life, be familiar with the thoughts of Taoism and Buddhism, keep quiet and do nothing, abandon desires and thoughts, and use these philosophical common sense to guide your thinking and behavior truthfully, so that your mind can remain pure and free. Lao Tzu said, "I have heard that those who are good at preserving life do not avoid rhinoceroses and tigers when walking in the mountains...", which means that those who are good at preserving life do not easily chop rhinoceroses or tigers when walking in the mountains... A trader should not take risks easily, should not be driven by desire to hold a large position or rush to enter the market, and should not leave the market too early because of fear and doubt. Honestly control the position, honestly look at the market and then follow the transaction, this is the original way to do trading. If you expect or doubt the transaction because of thoughts or bad psychological activities when trading, then you have deviated from the essence of trading. There are studies on "trading psychology" now, but those are all about how people will have bad psychological activities when trading and the various processes that affect correct trading behavior. In fact, if you are a mature trader, the essence of profit and loss has nothing to do with psychological activities. But few people in this world can see this. At most, they can see that the psychological process determines the way people behave, and try their best to control their psychological state and trading methods and principles. This is the typical psychological state of immature traders. But in fact, you don't need to work so hard. Just give up your ideas, simplify your behavior, lighten your position in proportion, make a few actions to follow the price trend, and make profits in the process of holding positions as the price moves. This is trading. How can there be so many thoughts in it? If you have thoughts in it, and are controlled by these bad thoughts, you will be restless, anxious, and reckless with heavy positions, and you will only suffer losses. Isn't it asking for trouble?

5. Correctly understand transactions

Traders must correctly understand trading. It is important to know that holding a position and trading are two different things. If trading is a verb, an action, then it is often done intentionally and frequently. Most people in the world feel uncomfortable if they are not trading. If they do not enter and exit the market frequently, they will not appear to be capable traders. If they do not stare at the market every day and analyze and buy and sell in a self-righteous way, it seems that they cannot show their wisdom. Holding a position is to do nothing. The profit figures of his position change every moment with the changes in the market trend, but his heart and hands will never worry too much or change his position easily. When the trend is completed, the price movement pattern will tell him that he should pocket the profit. At this time, he will naturally harvest his warehouse receipt. As for whether to enter the market for the next order, how to enter the market, and when to enter the market, it depends on the price trend itself and his work and leisure time arrangement. The opportunity to make a profit is always everywhere. But it is strange that such a simple way of making a profit is always impossible for investors or traders to do it. Why? I'm afraid it's still what Laozi said, the real profit-makers are in the "great wisdom is foolish" keeping quiet and being gentle, while those "strugglers" who have the "pleasure of trading" are in the "great foolishness is wise" buying and selling. The basic idea of ​​yin and yang theory or dialectics is that when you don't move, everything in the world is changing, so you don't need to move too much. If you have to move, you should move with the movement of the surrounding world. This is called response or compliance. Because the achievement of anything is the product of the mutual movement of various conditions in the surrounding world, rather than the subjective will of people, so individuals must keep quiet and wait for changes or adapt to changes. The relationship between K-line movement and trader behavior is even more so. Use stillness to control movement and use stillness as movement. This is also the way we do everything.

6. Pay attention to accumulation

Traders should also pay attention to the significance of accumulation. "A journey of a thousand miles begins with a single step" and "A pile of sand makes a tower" all mean that the accumulated results will be huge. The same is true for financial transactions. The market trend is the result of the superposition of each main wave push and secondary wave pullback. Don't think that it is meaningful to enter and exit the market because of each fluctuation. In fact, it is meaningful to hold your position and at most increase your position after the trend is restored, rather than making mistakes due to your speculative psychological fluctuations. The big trend is the result of the superposition of several small trends. You must be patient and wait for the position to follow the big trend. Similarly, if you enter and exit the market more often, you will make more mistakes, and your accumulated losses will be huge. If you want to get it back, you also need to improve your ability to double it. From a positive point of view, the significance of accumulation also lies in the compound interest of your warehouse receipt profit. Compound interest has great power, but it also comes from freedom of mind and inaction. Imagine that you are not holding a heavy position in order to get rich quickly or taking risks to win a short position, but you can follow the market with a light position and for a long time every time. Then, as the number of spreads rolls and accumulations increases, your book profits are also accumulating and amplifying. When you encounter a clear market, you can continue to follow the trend by adding positions. By following the trend of holding positions, rolling spreads, and accumulating over time, even if you always hold a light position in proportion, you can still have a huge harvest. On the contrary, the traders who want to have a position of getting rich quickly, take a heavy position, frequently fight for short-term benefits, and only know the immediate benefits, but do not know that the various specific conditions behind will change at any time, and they themselves have no coping ability. Sooner or later, you will lose a lot of money just like the unbearable consequences of speeding or even running a red light because of a fluke mentality. Desire hurts people, and the consequence is generally that the car is destroyed and people are killed, and there is no money left. At that time, it will be too late for you to learn from your mistakes.

7. More ease means more difficulty; haste makes waste

In the process of development of any matter, there must be many conditions that determine and influence it. Fast is harmful, slow is beneficial. Therefore, the slowest accumulation is your fastest way to make a profit, and you must believe that the power of compound interest is huge. Compound interest, sometimes it is an algebraic growth, sometimes it is a geometric development, with infinite energy, just like a bean sprout pushing a stone, which is shocking. You must be patient to see this huge harvest. The huge wealth gained by the expansion of time and accumulation, because of the different starting points of thinking and reality, will make you feel it in turn when the real huge harvest comes. Although it took some time to own the huge wealth, it is still very fast and safe. Therefore, the fastest and greatest way to own wealth is to slowly accumulate profits from safe positions one after another. There is no other way. Find a few moving averages, they will form the direction and path of price movement, and they are often the guardrails of the path, then draw a horizontal line, at most look at the form of the K-line combination, and then follow the K-line, that's it (build a trading system, this is the truth of trading, and the truth of making money). This is not to ask you to engage in sophisticated technical indicators or trading methods, but to give you some information or confidence to follow the market trend. And in the final analysis, this is still a kind of following - following the high-probability moving average rule or the general trend of the K-line combination pattern. Only when these indicators and K-line directions are formed can you enter and exit the market, rather than subjectively predicting in advance or imposing subjective will on the transaction. If you are a mature person, you don’t need any indicators at all, and you can operate naked, because you can see the ups and downs of the market, just follow it. As for the fundamentals, only boring people will look at it. So, trading is so simple. If you have to find a clever method, it is to return to simplicity and purify your mind. You need to treat yourself as an "idiot" (this is a kind of practice, a state, and most people really can't be an "idiot"!), be empty and inaction, without a single thought, don't predict, and don't be anxious, let the direction of price movement tell you how to follow it up or down.Because where the road is, what the direction is, and how far the destination is, are never chosen by you, let alone predicted by you. Your current path has always been told, chosen, and followed. If you have already embarked on this road, then raise your head and enjoy the scenery on the roadside or in the distance, and don't worry about your feet. In a nutshell, the "way" of profit is to "be profited" in a follow-up way when "everything is empty". People pay attention to the word "ability" when doing anything. Some people have the ability to calculate, so they study mathematics; some people have the ability to move, so they do sports; some people have the ability to sing, so they become singers; some people are good at strategizing and planning, so they have a special liking for power, and so on, which is the basis for him to do a good job.

8. How to achieve long-term stable profits

In financial transactions, if you can always make a profit, does it mean that you have the ability to make a profit? If you are a financial tycoon or an investment bank or a combination of investment banks, you can call the shots in the market and influence the situation. You are undoubtedly capable. In addition to your ability to marry into politics and have excellent economic wisdom, you must also have strong capital power to let you play. But the problem is that you are just an ordinary trader, an investor with only a few thousand dollars, or at most a few million dollars. So you don't have any ability. Someone asked, you said so much, you said you can make a profit, then you are not a financial tycoon, what are you doing here? I will answer your question now. I always make a profit, but I am not a financial tycoon, and I don't have any so-called profitability. I have already said the first point above, now let's talk about the second strange question. Financial transactions can really make a profit, and it is a long-term and stable profit, which actually has nothing to do with the trader himself. If you follow the trend, you can make a profit, that is the market making you profit; if you can't make a profit, it is because you hold a position against the trend, and the market does not make you profit. The way to make a profit is that you can follow the trend and hold your position. If you hold your position and can go with the trend, it is the power of your cultivation that is at work, not your ability to make a profit in trading. If you make a profit, it is definitely not because of your merit or your ability to trade, but because of your "Tao" nature. Some people say that I have the ability of technical analysis, I have the knowledge of fundamental judgment, and I can predict the market, which is just a joke. Technical analysis is a summary of high-probability events. I admit that it is useful for judging future market trends, but first, most of it is summarized after the fact, and second, technical analysis is mostly limited to a certain price market stage, and there is actually no need to pay more attention to the impact of local movements on the overall trend. I believe that your ability to predict fundamentals is still far from enough. Even if you can predict, it is just ambiguous. Therefore, trading is just following the trend.

9. Are plans, principles, and strategies important?

My answer is that I have these things, and I pay close attention to them. I just open a position with a light position, set a stop loss, follow the price, and continue to open a position with a light position when I make a profit, that's all; if you must say that I have a plan, I only have these simple actions, in fact, it is not a method or principle. You are doing margin leverage trading, can you not open a light position, can you not stop loss? So I don't have any principle or strategy. In short, profit has nothing to do with you, don't brag about yourself, it is just a gift from the market. It is not that you have the ability to make a profit. If you work hard in the trading market, or are looking for a way to win, from now on, you should know that this is of no help to your trading. But if you always lose money, it is indeed related to you. You are always doubting, you are always expecting, you are always afraid, you are always analyzing, you are always planning, you always require yourself to abide by the trading principles, but in fact, you are always losing money. The method of trading is to have no way. Stay outside the market, open a position in the trend, wake up to the urge to understand the truth, and do good after making a profit. Free and unfettered, the world will change by itself. Knowing the beginning of action and knowing the end, the market will act by itself and I will benefit myself. I will benefit myself but I am outside the market. There is no benefit in putting yourself in the transaction. You should try to put yourself outside the transaction, so that you can empty yourself and make the transaction have nothing to do with yourself. Because profit is determined by the market, not by you. If the direction of your position is consistent with the direction of price movement, you will win. If it is not consistent, then change it. The market is the leader and you are just an outsider. Why do you have to put yourself in the transaction wholeheartedly? In the final analysis, whether you make a profit or not has nothing to do with you. So following the trend is what you should do and it is natural. I don’t take the initiative to follow the trend or anything. I just need to see its movement and follow it gently. Then I place an order and go to sleep. The market acts automatically and I benefit myself. This is the Tao. After making a profit, don’t think you have any ability. In fact, the profit is given to you by the market. You don’t have any energy or ability in it, so there is no so-called profitability in it.If you can make money, don't think you are great or awesome. Just like when the weather is good and the people have food to eat, the king of that country thinks he is awesome and it is his power that makes the people well-fed and well-clothed. Isn't this self-deception? Just like the air makes everything grow, you think your ability is the reason why the air plays a role. Isn't this ignorance? Therefore, making a profit is just a matter of course, and doing it in a matter of course is virtue. The "Tao" and "Virtue" in the "Tao Te Ching" should be clearly understood. Lao Tzu could see it so clearly thousands of years ago. Thousands of years later, don't you think about it seriously? On the other hand, if you can't make a profit, it's because you take yourself too seriously, devote yourself to trading, and try your best. The more you do, the more you lose, because it's all self-opinion. Try to empty yourself and cultivate your own thoughts. Only in this way can you improve.