1. What Does A True Trader Care about?

A true trader only cares about two things:

• What to do when the trend proves me right after I buy;
• What to do when the trend proves me wrong after I buy.

No one can accurately predict future market trends. The only thing you can rely on is a set of rules - consistent trading rules that put you on the side of probability in this game.

Profit is not obtained by predicting the success rate of market trends, but by minimizing losses when you are wrong and maximizing gains when you are right. This is the biggest difference between a practitioner and an analyst.

The purpose of your purchase is not to lose money, but to make a profit and maximize it. When the trend is in your favor, you must be greedy and let your profits run. When the trend is against you, stop fantasizing and cut your losses.

2. Understanding the Market: The Role of Entry Points and Trading Strategies

When is the market direction clear? It is never clear! The market is a percentage play where you bet with your own chips, even though many people do not consider it gaming due to the higher probability.

The fact is, no one knows how the market will move tomorrow. Trading is placing bets, paying a fixed cost for uncertain profits, with the only difference being that you stay away when the risks are fatal and gaming when the risks are controllable.

Most of the time, "plan your trades and trade your plans." After the market closes, I analyze the trend and determine how to proceed according to my rules. During trading hours, I just follow the rules. If you start considering where to buy or sell within the market fluctuations, you will likely feel lost.

It is unreliable that the specific entry point occupies a significant role in trading. Only those pursuing small profits focus on specific entry points. Trading that is not focused on pursuing small profits and short-term gains will lose more opportunities and profits by overly emphasizing specific entry points.

The specific entry point is not the focus of  trading. Review the trend of the day and previous days after the market closes, use your experience to judge a direction, find a price range that you think is suitable, and then buy and hold. Don't spend a lot of energy studying where the price will stop at certain points, but many stock traders emphasize the importance of specific entry points in their trades.

If the precise entry point plays a crucial role in your trading and you are not pursuing small profits and short-term gains, it means you have no understanding of trading strategies. You don't even understand how market trends are generated, let alone what you are supposed to operate.

There was once an experiment on Wall Street where several charts were shown to elementary school students and experienced traders, and they were asked to predict the direction. The success rate of the elementary school students was overwhelmingly higher than that of the experienced traders.

3. The Importance of Consistency in Trading: Overlooking Precise Points for Long-Term Capital Growth

The reason why you place so much importance on buying at precise points can be attributed to several factors:

• You always hope to buy at the lowest point so that you can make a profit immediately and cannot tolerate normal price corrections.
• You believe that stop-loss is a disaster, so you always set your stop-loss very small.

However, you overlook the fact that buying a little higher or lower within a certain range is not as important as missing out on opportunities due to the pursuit of precise prices. Many people miss out on opportunities because they try to chase the exact price in a high probability upward trend.

The most foolish person in this world is the one who thinks they have discovered a truth that others cannot see. Never expect to buy at the lowest point or sell at the highest point. One key reason why many people fail to increase their funds overall is that they cannot withstand the retracements in unrealized profits. In fact, unrealized profits are not your actual profits, and no one wants their profits to retract. While you may lose some profits due to retracements, you can also capture even larger profits because of them. This is an essential part of market trends, and  become accustomed to it in your trades.

The extent of losses is within your control, while profits require the support of market conditions. Your buying or selling decisions are not based on your assumptions but rather on the actual market trends. Never put yourself in a passive position, and never pursue perfect trades.

Regardless of the trading rules you adopt, you need to consider one thing: whether these rules and strategies can lead to an increase in capital equity over a longer period, rather than relying on isolated trading days or occasional trades as your basis for trading!

Don't adjust your trading rules for specific market conditions. The only way is to adhere to your own rules, regardless of how the market moves. You should maintain your operational bottom line and consistency in trading rules. Not all market conditions should be profitable according to your trading rules, and you must understand and accept this fact.

Consistency means that you always follow your own rules at all times: the market and external factors do not interfere with you, unless there are substantial losses within the rules. Speaking from hindsight, the definition of consistency is that as long as you persist in your own rules and are not swayed by others or temporary market trends, the market will eventually reward you.

4. The Key to Successful Trading: Resisting Temptations and Sticking to Your Strategy

When you couldn't remain calm in the face of market fluctuations and couldn't watch the market without being affected, a successful senior trader once told me that as long as you prevent significant capital retracements and maintain profitability within your own pace, even if it's slow, the market will eventually reward you. You should deeply believe in this principle, and this reward has come more than once.

A mature trader does not believe that there are unique secrets to trading. Even the most profitable trading strategies are already well-known and widely used. The only difference between winners and losers is their ability to resist constant temptations and adhere to their beliefs. There are no other secrets.

In the past, many friends said about their various difficulties and their desire to make profits through trading. However, they always got lost in the ever-present temptations of the market, couldn't tolerate the fluctuations, either bought too early out of fear of missing out or waited for a lower price and missed the opportunity, sold too early out of fear of selling late, or held onto unrealistic expectations and sold too late.

This is trading. Don't always think that those who make money have some secret method and count their money in a closed room. This market has been around for hundreds of years. Any profitable or unprofitable methods have long been studied thoroughly. You won't find anything that previous traders haven't explored, so don't think you have made any new discoveries. Most of the time, it is just a self-constructed trap.

Volatility comes from the market, but risk does not come from the market. It comes from your trading decisions and whether you control the risk or not. In a low-risk market, if you don't control the risk, it will be infinitely magnified. In a high-risk market, if you know how to control the risk, it will be greatly reduced. If you can't control the market and your own trading, there is no greater risk than having the market in your hands.

Whether it's a strategy or a plan, once you execute it, you must strictly adhere to it. Only when you formulate strategies outside the market are you relatively objective. Once you enter the market, you lose your rational judgment. At this point, the only way is to stick to your established strategy.

Let's simplify trading a bit. There are too many factors that influence the market. No one knows which factor will have an effect. Simplify your trading and do it in your own way!