The first level of trading, I call it a “sponge.”
This stage is characterized by frantically absorbing and studying various theories, knowledge, and principles.
From Dow's theory to Gann's theory, from K-line charts to curve charts, from financial analysis to industry theory, from macro theory to trading psychology.
Anyway, everything related to trading is insanely absorbed.
This is the only way for everyone to invest and grow. It is a process of laying the foundation.
This is because the more solid the foundation is laid, the further we can go in the future.
Like a sponge, it is not difficult to absorb, it is difficult to remove coarse essence, it is difficult to digest, and it is difficult to blend in.
The second level of trading, I call the “lost person.”
The characteristic of this stage is: Dear, I understand the reason, but why is TMD not profitable?
The characteristics of the complex human physiological system are bound to be one thing, that is, there is a long circuit from understanding a certain principle to execution.
There are many things that can interfere with and damage this circuit.
It's like the Red Army marching 25,000-mile long march. In the middle, they had to climb snowy mountains and cross meadows, endure freezing and starvation, and they also had to make all kinds of maneuvers with the enemy, and die nine lives.
The difficulty of this circuit, from understanding the truth to putting it into place, is no less difficult than the 25,000-mile long march.
Because along the way, you'll encounter an extremely powerful enemy, your emotions. Like greed and fear. The power of emotion is so great; its power is 100 times greater than your power of reason.
That's not the scariest.
The scariest thing is that this emotion is also a part of you.
For example, when it's time to stop loss, you just can't bear it...