All things in the world share the same origin of success and failure, and when placed on the trading table, it is actually the same principle - just four words, profit and loss share the same origin There is a saying in the Zuo Zhuan that if you rise up with this, you will perish with it. At first glance, it appears to be about history. If you take a glance at your own delivery note, you will realize that this is a case of profit and loss sharing. What you earn money from is likely to be spit out by the same set of things in the end People who rely on heavy positions to eat meat are the easiest to later understand all losses as insufficient positions; People who rely on carrying orders to bring them back are the most likely to believe that all losses are worth enduring to the death; People who make quick money by chasing hot topics may also mistake chasing high prices for genuine market sentiment Making money once not only gives you a floating profit, but also secretly gives you an illusion. Since this trick once made me double, it should still be able to make me continue to double. The most frustrating thing about the market is that the K-line doesn't seem to have changed, but your position has already changed There is a harsh saying in "Huainanzi" that goes, "Those who are good at traveling drown, those who are good at riding fall, and each according to their own preferences brings their own misfortune. Those who can swim die in the water, and those who can ride horses fall under them. This statement is most appropriate in trading. The better you are at something, the easier it is to stumble on something The real backlash against a trader is often not his weakness, but the weakness that he has used so many times that he no longer wants to doubt Decisive ordering is a skill, but if you go too far, it becomes chasing after the rise and killing the fall; Prudence is originally a risk control measure, but going too far becomes stepping into the air; Dead carrying can survive the insertion, but once the direction is wrong, carrying orders is amplifying losses. Many people think they died due to their lack of skills, but what really causes them to explode is when they forget to apply the brakes while showcasing their strengths I have seen too many people who started with leverage. In a bull market, he eats ten or twenty times more meat and feels like he has touched the door to his life. He dares to fill his position when everyone hesitates, and his almost terrifying confidence makes the whole market see his sharpness. However, the same strategy later became his boundary. He was accustomed to using leverage to solve problems and became increasingly unwilling to reduce positions, stop losses, or admit that some market trends could not be sustained by increasing positions. The time he liquidated his position, what he actually lost was not leverage, but his excessive belief in leverage If a person's strongest ability gradually becomes the only answer to explain all profits and losses, the backlash has already begun That's also why many people's accounts seem to crash suddenly. Why did it go straight to zero this month, even though it was profitable every day last month. In fact, changes never happen suddenly on a certain day, but old experiences have not been updated You got into a bull market by filling your position, so your first reaction to every pullback is to replenish your position. After the market changes from a unilateral rise to a volatile one, what is needed is no longer whether you dare to increase, but whether you are willing to decrease. You still use a bull market strategy to hit volatile markets, the harder you work, the heavier your position becomes, and in the end, all your chips are tied to the mountaintop The most alarming thing is that I used to earn it this way. As soon as this sentence is spoken, it's basically like you're holding the map from the previous round and looking for the exit for this round In the Art of War by Sun Tzu, it is said that war is unpredictable and water is unpredictable. The water flow can go far not because it forcefully rushes in one direction, but because it winds around high places and walks away at low places, changing its shape according to the terrain. The same goes for trading. There is never a set of strategies that can cover all market trends. What really matters is not finding the holy grail once and for all, but knowing which market trends to use and which strategies to use The hardest part is this. It's easy to give up a losing strategy, but giving up a strategy that has made you big money can create a huge sense of insecurity. What you can't bear to part with is not that strategy, but the self it has proven before True path dependence is not just about strategy, but about identity. Someone made a profit from trends, but later couldn't accept the need for short positions, etc; Some people made a profit by copying the bottom, but later refused to admit that some of the bottom was taken from flying knives; Some people earn their first bucket of gold with just one coin, but later find it difficult to readjust to the slow pace of compound interest The most dangerous thing is not that people have inertia, but that once inertia is cloaked in experience, it is difficult to detect Laozi also said, 'If you hold onto it and gain it, it's not as good as you already have.'. My hands are already full and I need to add more. It's better to stop at the right time. This is not about making a profit and stopping, nor is it about teaching you to be afraid of death. It's about knowing one thing: when to add positions, when to take them down, when to reduce leverage, and when to leave The difference between experts and ordinary people is often not who can grasp the boundaries better, but who can see them earlier. You will find that those who have truly lived in this arena have a rarely noticed ability to allow themselves to overthrow themselves. Yesterday's effective strategy can be re examined today; I used to be good at playing, but now I can temporarily put it aside Zhuangzi said that a virtual room produces white. The room is empty so that light can come in. Trading is the same, if my mind is filled with what I have been doing all along, new signals cannot enter at all. The so-called empty cup is not pretending to know nothing, but blocking today's market in advance without using past answers There is a more practical method of judgment. Whenever a strategy starts to continuously earn you money, you should also take a look at what cost it is accumulating. Full positions give you profits, but also expose you to the brink of liquidation; Heavy storage brings you pleasure, but it also makes one black swan enough for you to not turn over; Chasing hot topics gives you flexibility and also allows you to see luck as a skill. Any strategy has both positive benefits and usage costs. When profits begin to decline and costs become higher, past advantages are quietly deteriorating. What's really important at this point is not to continue proving how much it used to be, but to see how much value it still has now The so-called profit and loss come from the same source. What is truly frightening is not that making money inevitably leads to losses, but that making money is the easiest way for people to stop correcting themselves. As long as a person is willing to change their strategy based on the market, profit and loss are not destined to be the same. The scariest thing is that you have already walked to another river and are still holding onto the boat in the previous river tightly That's right, the ship did cross you. What's wrong is that the river has already crossed, and you still can't bear to get off the boat What really needs to be let go is not necessarily losses, but the profitable experiences that have already completed their mission. What you earned in the past can be appreciated, but there is no need to offer it You can see your strengths and also see the end of your strengths; Be able to make good use of experience and turn around in a timely manner when experience fails. This is probably the most practical way to avoid the same source of profit and loss in this field After all, holding a card that has been won before, thinking it can always win Zeroing, starting over from scratch. It's best to reset not money, but the brain