The Three Realms of Trading Practice

1. Seeking External Victory — Learning Techniques, Establishing Rules
When you first start, you think making money depends on indicators, patterns, insider information.
You study furiously but keep getting slapped in the face by the market.
The core task at this stage is: turn trading from "feelings" into "rules."
For example: fixed stop-loss ratios, only taking signals that match the system.
Win rate isn't important; consistency is what matters.
2. Seeking Inner Peace — Controlling Emotions, Maintaining Discipline
Once you have rules, you'll find the hardest part isn't execution but the inner voice during execution:
"This time feels different... Just hold on a bit longer, and it'll come back..."
At this stage, you need to cultivate:
· Not panicking after losses: Instead of revenge trading after a loss, mechanically pause according to plan.
· Not getting cocky after profits: Proactively reduce position size after consecutive wins to prevent overconfidence.
· Self-reflection after trading: Record emotional fluctuations during each trade, reviewing your psychology like reviewing candlestick charts.
3. Seeking No Desire — Buddha as the Foundation, Demons as the Edge
Ultimately, you'll realize there is no "sure-win method" in the market, only a balance of probability and odds.
At this point:
· Buddha Heart: Accept the impermanence of individual gains and losses, viewing trading as a long-term repeated experiment with positive expected value.
· Demonic Nature: When an opportunity appears, press the trigger without hesitation, daring to take heavy positions.
These two states are not split but are two sides of the same heart: calmly waiting, fiercely executing.