It's not me bragging, but 95% of people don't understand the core essence of trading.

[SmileR] 95% of people do not understand the core essence of trading. How many of the following do you know?

1. Uncertainty is the foundation of market existence, and the future market trends cannot be precisely predicted.
2. The market trend is chaotic, requiring traders to categorize and define the chaotic movements, establishing deterministic rules to respond to the uncertain trends.
3. What is a trend? Traders need to define their own trends and use this as a basis for trial and error in opening positions. A breakout is a trend, a pullback to support is a trend, a crossover of two moving averages is a trend, hitting the top or bottom is a trend, and chasing highs and cutting losses is also a trend.
4. What is going with the trend? Look at your trading account; making money means you are going with the trend, while losing money means you are against the trend. It has nothing to do with the pattern of the price movement. If you are in a bullish trend and have gone long but your losses keep widening, can you still say you are going with the trend? If you are going with the trend, why are you still losing money?
5. How to open a position? There are various ways to open a position. What determines is the trading rhythm and error correction efficiency, not whether you can make a profit. Flipping a coin can determine long or short positions and still make a profit. Is your method worse than flipping a coin to decide long or short?
6. No trading method can generate an advantage in opening positions; after the law of large numbers takes effect with a one-to-one profit-loss ratio, the winning rate will approach fifty percent. Countless traders focus on opening positions for an extended period, but the core of making money does not lie here.
7. What is the core of making money? It is to cut losses and let profits run with the closing logic to achieve a high win-loss ratio; this is the only source of advantage.
8. The core objectives of position management are to preserve the principal and to maximize profits when making money while minimizing losses when losing.
9. What is trading technology? Trading technology begins the moment a position is opened. It involves how to manage risks and returns, what to do when things go right and what to do when things go wrong, how to cut losses, and how to allow profits to run reasonably. Various studies conducted before opening a position are trading analysis, not trading technology.
10. Why does knowing many trading principles still lead to poor trading? Because knowing is far from enough; one must reach a top-level understanding. Who doesn't know that stop-loss is correct, yet there are still countless traders stubbornly holding onto losses.
11. Why can't we hold onto profitable trades? Because profits often don't run, and we frequently receive negative feedback.
12. Why is it so difficult to make money? Firstly, because making money relies on the alignment of market trends with trading methods; without market trends, even the best trader has to hold back. Secondly, the advantage of a high win-loss ratio is relatively weak, which means that even with a high skill level, making money is bound to be a tortuous and bumpy process.
13. Are there huge profits in trading? Profits and losses come from the same source; taking on risk to gain rewards means that huge profits come at the cost of huge losses. What matters is what kind of huge profits you want to earn and what price you are willing to pay for them.