10 Truths About Trading:
1. Don’t want to keep getting slapped around by the market? The simplest way: don’t trade.
2. The market is always right. The more determined you are to beat the market, the more likely you are to hold onto a position all the way down, only to suffer ever-greater losses.
3. Excellent traders have achieved a state of unity between themselves and the natural world. When placing an order, thoughts like “Should I take the trade? What if I’m wrong? Maybe I should wait a little longer?” don’t cross their minds. They simply execute—cleanly, decisively, and without hesitation. It’s like a fish hunting in water, completely unaware of any barrier between itself and the water.
4. The core of good trading comes down to three words: stop-loss, stop-loss, and stop-loss again.
5. The essence of risk control: Only trade with money you can afford to lose, and only take positions where a win would feel meaningful. If neither condition is met, don’t trade.
6. No matter how many times you lose, how often you get slapped in the face, or how foolish others call you, grit your teeth and continue to follow your method strictly without giving up halfway. Believe deep down that as long as you keep doing the right thing, success will come sooner or later.
7. When a trend is rising or falling, trading with it can make you money. But no trend lasts forever; one day, it will come to an end. Once it suddenly turns, if you stubbornly cling to your original direction, it will throw you off and make you lose big.
8. Want to understand the market? Just go to the beach and watch the waves. If you try to push a wave back when it comes, you won’t be able to—you can only go with it.
9. Many people lose money not because their system is ineffective, but because the system doesn’t suit them. For example, if you are naturally prone to anxiety but use a system that requires enduring large drawdowns, your mindset will break down. Or if you like trading frequently but use an ultra-long-term system, you won’t be able to sit still.
10. Don’t predict the future. Only react to what has already happened. For example, once the price has started rising and the trend has formed, go long with it. As soon as the trend turns and the price starts deteriorating, immediately admit you were wrong and exit. When it starts looking good again, simply re-enter. Your losses remain controllable.