In my trading career, I have been constantly pondering a question: What is the fundamental difference between top trading masters and the rest of the crowd?

Is it because they are more diligent? Or is it because they work harder?

But this doesn't make sense, because there are so many traders who have tried their best but still can't get out of the slump, and there are so many people who have been immersed in the world of K-lines for decades without being able to rise up aggressively.

I kept thinking about this issue until at some point, I found that some professionally trained people were trapped in the analytical illusion they were proud of, and that some experienced traders were immersed in their own information world every day. I found that those seemingly obvious, those seemingly logical speculative principles, could actually lead to different people having different observations and thoughts, resulting in various different outcomes. Suddenly, I understand that in the world of trading, it has nothing to do with effort, education, or experience.

Cognition is the only difference.

1. There is no knowing without doing, only not knowing.

In the field of trading, many traders explain their lack of execution by using a phrase: easy to know, hard to do. But in reality, these four words mean nothing in the world of trading.

Speculative trading is not easy to do. The reason it's difficult to do is actually because of not knowing.

For example, many people know that smoking is harmful to health, so why not quit smoking? Because the awareness of the harmfulness of the word 'harm' is not enough.
For example, I smoke and have tried to quit smoking but failed in the end. I have examined my inner self many times to find the reasons for my failure. Is it because of my lack of execution? Is it because my resistance to temptation is weak? I don't think so, because in certain areas, I can demonstrate execution far beyond others.

What is the reason? I kept thinking about this question until one day, I suddenly realized the root cause: cognition.

I ask myself with a heavy heart, and my true understanding of smoking is: it is indeed harmful to health, but the degree of harm is limited. There are so many smokers around me, and I have never seen anyone have any accidents because of smoking. Moreover, smoking is one of the few methods that I use to imply that I am relaxed...

The reason why I can't quit smoking is because in my shallow and limited cognition, I think smoking is a burden for me.
The benefits outweigh the harm. So I can't change my perception, it's meaningless to force me to quit smoking no matter what.

I can eventually figure out a way to find one and light it.

But, what if one day I get sick and face a life-threatening situation because of smoking? There is no doubt that I will act.
Just quit smoking. My execution power will be stronger than anyone else's.

Because my cognition has undergone a tremendous change, there is no need for any coercive measures.

So, there is no such thing as knowing it is easy but doing it is difficult, it's just a lack of understanding. Change behavior, change trading patterns, and
The most fundamental thing is to change your perception, to change your view of the factors of trade.

2. Cognitive with action is true cognition!

Perhaps the most common is stop-loss, undoubtedly, stop-loss is the most basic trading skill. In the eyes of many laymen,
Stop loss may be wrong. They will say: all losses are stopped out by stop loss. However, in my more than 10 years of experience,
In my trading career, all the real trading masters I have seen are killers in terms of stop loss.
Decisive person.
Act decisively, without any hesitation.

Why do they do this? What supports their decisiveness? It's cognition.

Many traders think they understand the principle of stop loss, but in reality, many people hesitate at the moment of stop loss,
When it comes to real action, it starts to become tangled. Countless images start to emerge in my mind, and various emotions arise in my heart:
Why set a stop loss? What if the market goes up after setting a stop loss?
This market is trying to wash me out, but I must hold on!
Although the stop loss is correct, this time, I am fully confident that the market can rebound!
This stop loss position is not good, I have to change the stop loss position!
Today's market is a panic market, don't be panicked and go out.

At the moment when stop-loss is required, traders have countless reasons to decide for themselves, all sorts of reasons, but the fundamental reason behind it is actually just one point:

He believes that his stop loss will incur losses.

You know, speculation is about one's own fundamental interests, and human instinct is to seek profit and avoid harm, which we will always do.
Make the choices that you think are most beneficial to yourself in your own understanding. So, when it comes to real interests
At a critical moment, true cognition will definitely be reflected, and what supported him to make the decision at that moment is his
Fundamental understanding.

This is the fundamental mistake of knowing but not doing. Many people think they know but cannot do it, that's because you
The understanding has not reached the point where it can dominate your behavior.
In fact, I have emphasized before that although stop-loss is only two words, behind these two words, at least hidden
Countless cognitive levels can be roughly divided into the following 7 layers

01 Do not understand why stop loss
02 Realize Stop Loss
03 Efforts to avoid stop loss
04 Recognize the rationality of stop loss
05 understand the same source of profit and loss
06 Unconditional stop loss
07 Embrace stop loss

A trader may think he truly understands stop-loss, but in reality, he may only be at the second level,
His understanding may be at a very superficial level.

Who can really reach the point of unconditional stop loss? They must carry an absolute understanding of stop loss. They have all been through numerous battles and various pains caused by not stopping the loss. They prioritize the importance of trading after experiencing the pain caused by not stopping the loss. What do they think at the moment when the price reaches the stop loss?
The idea is: stop loss.
They simply won't have any thoughts of lock-up, intervention, or not setting a stop-loss. Because they know, in this
In an instant, stop loss is the perfect choice.

So, they will be resolute and calm.

Real trading masters do not have any magical exclusive cheats. They are just constantly learning from endless experiences.
Just forged a high-level transaction cognition.
3. The threshold for trading has always been understanding and execution.
The correct trading behavior cannot be achieved because of insufficient cognition. The trading system cannot be consistently executed because of insufficient cognition, stubbornly holding on because of insufficient cognition, heavy positions because of insufficient cognition, going all in because of insufficient cognition, and changing trading rules,
Changing plans, it's all because of insufficient understanding.

It is your risk perception, understanding of trading logic, understanding of K-line, understanding of the fundamental source of profit
Cognition led to all these erroneous behaviors.

The basic principle of speculation has long been established, all we need to do is understand and execute. The threshold for trading has never been
The breadth of knowledge, the precision of analysis, and the length of time you have traded are not the most important.

The threshold for trading has always been understanding and execution.

Jesse Livermore, the king of speculation, said: speculation is as ancient as mountains, and there is nothing new on Wall Street.
The basic principle of transactions is something that seems like everyone knows, but the degree to which each person 'knows' it is different. This is because the understanding behind these principles is divided into multiple levels, and also because the logic behind these principles is interconnected.

To have a complete grasp of everything, you need to have sufficient insight. Therefore, the difference between ordinary traders and top traders has always been the depth of understanding of each aspect of trading rather than the breadth.

Only when you have a deep understanding of the truth about speculative trading, truly understand every aspect of trading, and prioritize their importance, can you truly master speculation.

Help speculators see the truth of speculation, let them truly know why stop loss, why money management, why generate trading rules, why have trading logic, why establish a set
Futures trading system...

By going through these processes, it opens up their cognitive barriers, enhances their true understanding of speculation, and thereby changes their trading behavior.
To be.
4. The truth about speculative trading insights

This column requires you to patiently read through it. If you, like me, saw a turtle for the first time and went straight to look at the system.
In itself, I can tell you responsibly: it's meaningless because you simply can't handle it.
The turtle trading rule consists of only a dozen lines of code, but it takes a whole book to explain each link. Why? Because behind every seemingly simple link, there are countless complex logical connections and endless trade-offs.

The appearance of a trading system may look simple, but inside, it is one ring after another. Without the groundwork of the various cognitive links in front of me, understanding the specific logic behind it, your understanding of the trading system will belong to the most basic link, with no possibility of mastering it.

If you can master all the key cognitive points in this column, you will be able to master all types of speculative trading systems.