Behind every excellent trader is the self-discipline of an ascetic monk.
Why do successful traders have self-discipline?
The answer is: because there is only one way to succeed in trading, which is to establish your own trading rules.
What are trading rules?
For example: stop loss directly when the loss is 2%, use 10% of the funds for a single position, and do not do anything until the retracement exceeds 20%.
These rules are cold and ruthless. Many people can't stand these rules at all. They think it's too stupid to stop loss directly when the loss is 2%. Why don't they look at the actual situation first? Why don't they analyze the specific situation? Why do they have to be so rigid and objective? Therefore, do they have any fixed pattern in execution? They may not have any specific rules at all. They just take one step at a time...
This trading method is actually arbitrary from the bottom of their heart and cannot output trading logic stably.
Only a few traders can establish rules. Because it is very difficult to realize that "the only thing we can do to have a stable result in an uncertain trend is to have a deterministic trading logic." Many people do not know that in an uncertain trend, using a random method full of greater uncertainty will never achieve stability. When a trader understands these principles, he will naturally start to build a complete trading logic and then output this trading logic consistently. The trading logic itself is composed of trading rules. Therefore, you will find that the trading behavior of these traders is surprisingly self-disciplined. When it comes to the position where it is time to cut the position, there is no fluke, just cut it directly. When it is time to hold the order, it will never be disturbed by negative emotions such as greed and fear, and make a transaction that violates the rules. They may look self-disciplined and cold like a machine. However, the reason for this is that they have learned a truth from countless painful lessons: long-term and continuous execution of a complete trading system is the root of profit. As the saying goes, self-discipline leads to freedom, and the same is true for trading. Only with self-discipline can you make a profit.
In fact, as far as this title is concerned, the central idea is right on the title. If you write it seriously, what can you write? You can only cite some well-known but not necessarily familiar examples of celebrities, and talk about some irrefutable truths. In the end, it is nothing more than saying that a trader must be self-disciplined to do a good job in trading or that self-discipline is the basic element on the road to success.
Let me ask you: Who among the traders who have experienced some social beatings or market trials does not know the importance of self-discipline?
Successful futures traders have a relatively self-disciplined mentality, which is also an important prerequisite for their success. If they are called role models, I think they are definitely worthy of it.
The premise of self-discipline is to have consistent trading principles to follow, that is, a trading system. After having a positive expected value trading system that can be executed, the contradiction in trading becomes the contradiction between objective signals and intuitive desires.
Self-discipline means that in the absence of supervision, through self-demanding, changing from passive to active, and consciously restraining one's words and deeds. Self-discipline is an indispensable personality force. Without it, all disciplines will become meaningless.
True self-discipline is a belief, a self-reflection, a self-warning, a quality, a self-love, and an enlightenment. It will make you discover the beauty of health, feel happy, calm, strong, and always full of positive energy.
Trading requires self-discipline, because the core of investment is to deal with risks first, and then to make money. Complying with the discipline of trading, especially the discipline of stop loss, is the basis for dealing with risks. As for why most investors continue to lose money, Tiandan believes that there are two main reasons:
1. Many investors have no rules, no standards, and no discipline in trading.
2. Even if there are rules and standards, it is difficult to implement them during the trading process, especially when it comes to stop loss, they can't do it at all, resulting in infinite loss magnification.
In summary, if you don't understand the importance of dealing with risks, it means that you haven't started trading yet; without self-discipline, risk management is meaningless.
After asking these two questions, it seems to return to another topic: unity of knowledge and action.
The principle of unity of knowledge and action is literally in the text, and it is easy to understand.
If you see a failed person and say that this person is unable to achieve unity of knowledge and action, it is actually far-fetched.
When the rise and fall of prices has nothing to do with a person's actual wealth, he can rationally and calmly find the optimal solution. Once it involves his own interests, driven by his anxious and restless heart, can he still act according to the optimal solution every time?
First admit that you are an ordinary person.
If you first classify yourself as an ordinary person, admit that you can only do what ordinary people can do, and set all the plans according to the plans that ordinary people can do, will this increase the success rate?
Obviously, if you have the ability to set up such a plan, the answer is yes.
At this time, the competition is the intelligence of setting the plan.
If high IQ is also attributed to non-ordinary people, this solution is not complicated:
If one person cannot solve it, a group of people can solve it until it is solved.
Finding a plan and way of thinking that is conducive to the execution of ordinary people will definitely increase the success rate.
And this solution must and certainly has its core: simplicity.
The great way is simple at this time.
Let us review the source of the great way: Laozi's "Tao Te Ching".
Laozi said many similar words, such as the elephant is invisible, the great sound is silent... . . . . . .
This shows that this is Laozi's way of thinking, and there is no need to understand it literally.
In modern terms: the more powerful the trading method, the lower it looks.
In the trading world, tracing back a hundred years, is there a trick of "killing with one sword" handed down? Even if it has appeared before, it must have disappeared in the vast ocean of the trading world like a flash in the pan.
Why do successful traders have self-discipline?
The answer is: because there is only one way to succeed in trading, which is to establish your own trading rules.
What are trading rules?
For example: stop loss directly when the loss is 2%, use 10% of the funds for a single position, and do not do anything until the retracement exceeds 20%.
These rules are cold and ruthless. Many people can't stand these rules at all. They think it's too stupid to stop loss directly when the loss is 2%. Why don't they look at the actual situation first? Why don't they analyze the specific situation? Why do they have to be so rigid and objective? Therefore, do they have any fixed pattern in execution? They may not have any specific rules at all. They just take one step at a time...
This trading method is actually arbitrary from the bottom of their heart and cannot output trading logic stably.
Only a few traders can establish rules. Because it is very difficult to realize that "the only thing we can do to have a stable result in an uncertain trend is to have a deterministic trading logic." Many people do not know that in an uncertain trend, using a random method full of greater uncertainty will never achieve stability. When a trader understands these principles, he will naturally start to build a complete trading logic and then output this trading logic consistently. The trading logic itself is composed of trading rules. Therefore, you will find that the trading behavior of these traders is surprisingly self-disciplined. When it comes to the position where it is time to cut the position, there is no fluke, just cut it directly. When it is time to hold the order, it will never be disturbed by negative emotions such as greed and fear, and make a transaction that violates the rules. They may look self-disciplined and cold like a machine. However, the reason for this is that they have learned a truth from countless painful lessons: long-term and continuous execution of a complete trading system is the root of profit. As the saying goes, self-discipline leads to freedom, and the same is true for trading. Only with self-discipline can you make a profit.
In fact, as far as this title is concerned, the central idea is right on the title. If you write it seriously, what can you write? You can only cite some well-known but not necessarily familiar examples of celebrities, and talk about some irrefutable truths. In the end, it is nothing more than saying that a trader must be self-disciplined to do a good job in trading or that self-discipline is the basic element on the road to success.
Let me ask you: Who among the traders who have experienced some social beatings or market trials does not know the importance of self-discipline?
Successful futures traders have a relatively self-disciplined mentality, which is also an important prerequisite for their success. If they are called role models, I think they are definitely worthy of it.
The premise of self-discipline is to have consistent trading principles to follow, that is, a trading system. After having a positive expected value trading system that can be executed, the contradiction in trading becomes the contradiction between objective signals and intuitive desires.
Self-discipline means that in the absence of supervision, through self-demanding, changing from passive to active, and consciously restraining one's words and deeds. Self-discipline is an indispensable personality force. Without it, all disciplines will become meaningless.
True self-discipline is a belief, a self-reflection, a self-warning, a quality, a self-love, and an enlightenment. It will make you discover the beauty of health, feel happy, calm, strong, and always full of positive energy.
Trading requires self-discipline, because the core of investment is to deal with risks first, and then to make money. Complying with the discipline of trading, especially the discipline of stop loss, is the basis for dealing with risks. As for why most investors continue to lose money, Tiandan believes that there are two main reasons:
1. Many investors have no rules, no standards, and no discipline in trading.
2. Even if there are rules and standards, it is difficult to implement them during the trading process, especially when it comes to stop loss, they can't do it at all, resulting in infinite loss magnification.
In summary, if you don't understand the importance of dealing with risks, it means that you haven't started trading yet; without self-discipline, risk management is meaningless.
After asking these two questions, it seems to return to another topic: unity of knowledge and action.
The principle of unity of knowledge and action is literally in the text, and it is easy to understand.
If you see a failed person and say that this person is unable to achieve unity of knowledge and action, it is actually far-fetched.
When the rise and fall of prices has nothing to do with a person's actual wealth, he can rationally and calmly find the optimal solution. Once it involves his own interests, driven by his anxious and restless heart, can he still act according to the optimal solution every time?
First admit that you are an ordinary person.
If you first classify yourself as an ordinary person, admit that you can only do what ordinary people can do, and set all the plans according to the plans that ordinary people can do, will this increase the success rate?
Obviously, if you have the ability to set up such a plan, the answer is yes.
At this time, the competition is the intelligence of setting the plan.
If high IQ is also attributed to non-ordinary people, this solution is not complicated:
If one person cannot solve it, a group of people can solve it until it is solved.
Finding a plan and way of thinking that is conducive to the execution of ordinary people will definitely increase the success rate.
And this solution must and certainly has its core: simplicity.
The great way is simple at this time.
Let us review the source of the great way: Laozi's "Tao Te Ching".
Laozi said many similar words, such as the elephant is invisible, the great sound is silent... . . . . . .
This shows that this is Laozi's way of thinking, and there is no need to understand it literally.
In modern terms: the more powerful the trading method, the lower it looks.
In the trading world, tracing back a hundred years, is there a trick of "killing with one sword" handed down? Even if it has appeared before, it must have disappeared in the vast ocean of the trading world like a flash in the pan.