NVDA
NVIDIA
-- 149.430 TSLA
Tesla
-- 411.050 FUBO
FuboTV
-- 5.060 PLTR
Palantir
-- 75.920 AMD
Advanced Micro Devices
-- 129.550 
The way of trading is simple, patient, and diligent.
1. See through: identify trends and wait for big money.
2. Endurance: Pointing out the world with a smile.
3. Determination: Small tolerance leads to chaos in grand plans.
Fourth, being at ease: Those who can turn ordinary loneliness into leisure are immortals.
Fifth, being calm and composed: Cultivating a detached mind is a lifelong pursuit of knowledge and experience.
Being calm and composed means having a peaceful and deep state of mind. This is the ability required to accomplish great things.
Seven, talented individuals with a calm nature are great talents; intelligent individuals with a harmonious temperament are great intellectuals.
Before starting, a few words need to be said:
First mindset, second technique, third capital. With mastery, wealth comes and goes, and for a master, capital is not a problem; to act without acting, to have no concerns, to taste inaction, to act without acting, to experience a leisurely life in the stock market, to live in the mortal world yet enjoy the realm of the immortals.
悠闲与忙碌，是大师与高手的区别。高手掌握技术，逻辑缜密，思维严谨，随行情起伏和市场信息跳上跳下，活像一只猴子，技术再高也难免不落一个下乘，生活情趣荡然无存了。
大师或宗师悟透禅机而弃绝常规理论、看法，超越了基本面、技术面，不再纠缠于价值投资、技术分析，跳出了信息、技术、波动的纠缠，超然物外，享受丰厚的利润、宁静的生活，采菊东篱下，悠然见南山。
炒股的境界：扁鹊三兄弟的故事。
魏文王问名医扁鹊：“你们家兄弟三人，都精于医术，到底哪一位最好呢？
扁鹊答：长兄最好，中兄次之，我最差。
文王再问：那么为什么你最出名呢.
扁鹊答：长兄治病，是治病于病情发作之前。由于一般人不知道他事先能铲除病因，所以他的名气无法传出去。
中兄治病，是治病于病情初起之时。一般人以为他只能治轻微的小病，所以他的名气只及本乡里。而我是治病于病情严重之时。一般人都看到我在经脉上穿针管放血、在皮肤上敷药等大手术，所以以为我的医术高明，名气因此响遍全国。”
Who should admire the three brothers of Bian Que? This is a difficult question, because they are all studying medicine. But in the capital markets, this dilemma does not exist. The proper way is to make money in silence, and naturally the eldest brother of Bian Que is the most clever. In stock trading, we should learn from the eldest brother of Bian Que, to be effortless, to have no business, no taste, and to enjoy wealth, harmony, and tranquility in a leisurely manner. Instead of being busy and jumping around.
This post is about how to become the eldest brother of Bian Que in the stock market, surpassing capital, information, value investment, and technical analysis, and directly touching the deepest essence of the market. Now let's get to the point and give everyone some guidance, so that everyone can see the way through the guidance to a peaceful place.
1. See through: perceive the trend and make big money
The reason why the truth is difficult to grasp is not because it is too difficult, but because it is too simple.
Those who trade stocks are all smart people. If they can't make money or lose money, it's not because everyone is stupid, but because everyone is too smart. In the stock market, it has always been the money of the stupid people that the smart people make. Maybe everyone is not convinced, and even more do not believe that this is the case.
Let's take a look at an example:
The author of 'Short-term Trading Secrets', Larry Williams, makes money by following the two words 'sit and wait'. He said that he had been unable to resist the impulse to enter the market many times, but every impulse made him lose money, which made him heartbroken. He switched back to his original method and made money. He said that he made millions of dollars in profit by waiting, that's right, by waiting.
In 'Reminiscences of a Stock Operator', Jesse Livermore experienced ups and downs three times in his life. As one of the greatest investors in American trading history, he eventually chose suicide under the burden of depression, considering his whole life a failure. In fact, he also made money by playing dead. By controlling his desire and impulse to trade through sleeping, he avoided failure and let his profits fly. It's just that he was too smart and couldn't control his impulse to trade, which ultimately caused a tragedy for himself.
Where is the mystery?
Westerners do not know and cannot comprehend this, which is not strange. But as Chinese people, we cannot be so unclear about it because the Western culture does not provide guidance to lead people out of confusion. However, we Chinese have a natural cultural foundation of being ingenious in simplicity, wise in foolishness, silent in sound, and invisible in substance.
"The superior person listens to the way and diligently practices it; the average person listens to the way, half believing and half doubting; the inferior person listens to the way, laughing out loud, as if it were a joke."
Intelligent people of the highest level can understand and readily implement the truth when they hear it. People of average intelligence will have doubts when they hear the truth. And the fools of the lowest level always think highly of themselves, considering themselves clever. They not only do not understand the truth but also laugh heartily. Therefore, Laozi tells everyone the standard to distinguish the truth: what most people disdainfully overlook and laugh at is the truth.
Because fools always make up the majority, and their numbers are not sufficient to be the truth. We Chinese have the unique advantage, and I hope that the majority of stockholders can diligently study the culture of our ancestors, join the ranks of the few wise individuals, whether it is for the sake of our country or out of respect for our ancestors. In short, learning these things will make your lives better.
Stock speculation is a simple matter, but if I were to state it directly, everyone would surely scoff at it and overlook it, causing all my efforts to be in vain. It is not only a waste, but it also goes against the compassionate purpose of the Western spiritual leader to liberate sentient beings, as it leaves many people who could have been liberated, struggling in the stock market.
The secret is: you can only make money when the market is rising.
Everyone may think that this is a meaningless statement, but it is the truth. Because it is so simple, everyone ignores this truth and considers it to be nonsense.
Only when the market is rising can you make money. This means that when the market is in a downtrend, it's best to stay out of the market and not go against it, or you'll have trouble with your money.
You can only make money when the market is rising. This means that when the market is oscillating and consolidating, it's best not to mess around and waste effort, as it's not worth it.
You can only make money when the market is rising. This means that when the market is in an uptrend, you should follow and then wait, sleep, or play possum until a major turning point appears.
Trading requires fees, and every trade means more fees. Doing too many trades just means giving away money.
Once a trend is established, the battle between long and short sides is already decided, and it's not easy to change in the short term. Trends will continue and require time to persist. Time is space, and being willing to wait is the only way to see the expansion of profit space.
Those who have never tasted the sweetness of waiting will find it hard to appreciate the leisurely and carefree nature of it.
When you feel overwhelmed and exhausted in the stock market, take a break and imagine focusing on one direction for two weeks to a month, not caring about the fluctuations in between. That would be true freedom.
Why the agony? Because every fluctuation determines your fate, and leaves a heavy weight on your heart, causing endless pain.
In fact, if the market is in an upward trend, it will naturally rise, and there will be fluctuations which are normal phenomena. By not getting entangled in these details, you can free yourself.
If you get caught up in the fluctuations, every movement of the market will determine your mood. Can you handle the ups and downs of your emotions? Can you avoid confusion? Clearly, it is an upward trend, but a small downward fluctuation makes you feel like a disaster has struck. Not to mention the torment of the mind, if you can't hold on and sell at the lowest point, it becomes even more heartbreaking.
How to free yourself: Don't let fluctuations affect your mood.
Follow the trend. Until a trend is fully developed, it will not end. You can wait confidently. Only care about trends and ignore fluctuations, and you will go from being entangled on this side to a leisurely state on the other side.
When you place a trade, what you are eating is a trend. How confident and solid it makes your inner self feel.
When you place a trade, you are looking at the long-term. You don't care about small fluctuations, and therefore you are free from inner conflicts and torment. Your inner self no longer experiences ups and downs, and that is how calm you become.
When you place a trade, you are reaping big profits. Even when handling large sums of money, you can handle it with ease. You will appear calm, composed, noble, and graceful. That's the style of someone who accomplishes important things and earns big money.
When you place a trade, you see through the fluctuations and grasp the essence of the trend. You no longer worry unnecessarily, but instead surpass the fluctuations and control the trend. The market becomes your good friend. That's where wisdom and good fortune lie.
No wind is favorable for a ship without direction.
If a person does not know where they are heading, then no wind is a favorable wind. - Seneca, "Moral Letters".
This statement is also fitting for the stock market - if a person cannot see the trend of the market, then any fluctuations can be agonizing.
The root of all mindset issues lies here, and the solution to all mindset issues is also found here.
On the contrary, if one can see the essence of the trend, then any fluctuations become their own friend. High selling and low buying in the upward trend, following the trend on a macro level, going against the trend on a micro level, thereby maximizing profits. In this way, fluctuations become their own friend and a source of happiness.
"Simplicity" is the greatest achievement throughout history.
There is a saying in psychology that is enlightening: people with a simple mind always need complex embellishments and fillings, while people with a complex mind have a special and paranoid demand for simplicity.
The path to simplicity is not something that the wisest person cannot achieve.
Second, can withstand: talk and laugh to show the way
The common characteristic of people who make money in the stock market is: can withstand
It is not difficult to see the trend. Even a three-year-old child can know whether the trend is up or down. However, experienced traders may not be able to withstand it.
Williams relies on being foolish and pretending to be dead; Nicolas Darvas sleeps when he can't stand it; Livermore is known as the greatest trader, and he also experienced five bankruptcies because he couldn't stand it, and finally chose to commit suicide. Buffett became the stock market god, and the reason he is superior to them is not in technology or theory, but in the ability to withstand three words.
Even these experts and stars in the investment industry find it difficult to withstand, which shows how rare the word "endurance" is.
The first point explains the essence of grasping the trend through the phenomenon of volatility. This emphasizes how to persist in catching the trend, which is the most difficult part. It is so difficult that even the genius traders cannot bear it. They have to force themselves to sleep and not look at the market in order to persist.
It seems that Buffett also doesn't look at the market! Because those fluctuations do not affect the essence of the trend, but they will affect the ups and downs of emotions, and interfere with one's judgment of the trend. One cannot bear it and will lead to major mistakes.
So, you must, must, must remember this principle: can withstand. Otherwise, the trend has nothing to do with you.
Understanding the nature of trends and being able to withstand the interference of fluctuations is the next step in choosing the buying and selling points, which is the art of pointing the trend.
How to determine the key points of buying and selling. Let me introduce some tricks of investment geniuses to everyone:
1. Williams' only trick to make millions of dollars: follow the breakout market, set stop losses and wait, play dead for 3 days, 5 days, two weeks... and exit at the last moment.
2. Nicholas Darvas, known as the king of retail investors for his book "How I Made 2 Million Dollars in the Stock Market", is actually a "one trick pony". He is the founder of the "box theory".
He found that the combination of price and the trading volume of growth is a powerful source of demand that drives stocks forward. In this trend, stocks will move within a series of structures he calls boxes. For example, a stock will jump between the high point and the low point (such as $35 and $40), forming a 35/40 box.
If the stock price exceeds the top position of 40 dollars in the example above, especially accompanied by an increase in trading volume, he will buy the stock. This sign proves to him that the stock is ready for the next level of box movement and has enough demand for price increase. If it falls below the bottom of the box, he will immediately sell the stock. Stock "box theory" is a short-term operational treasure.
Everyone should remember that this retail investor king only has one trick from beginning to end. This one trick made him invincible. If everyone uses this trick, can't they be sure? The same behavior pattern yields the same results. Just replicate Darvas' behavior pattern and you will get Darvas' results.
His biggest challenge, like Williams, is not in determining the key points, but in controlling the impulse to trade.
3. The key points of Livermore.
Livermore only trades stocks when the large cap is on an upward trend, and chooses the leader (leading sector, individual stocks) in the upward trend. His trading involves three important concepts: normal retracement, danger signals, key points.
Non-violent pullbacks are all normal retracements. He emphasizes that this kind of pullback in the market is completely normal. Never be afraid of this normal action. But once there is a violent pullback, then one should be very afraid, and this is a danger signal. Another danger signal is when the market surges to a price level, retraces, and then continues to rise, reaching the previous price level and retreats again.
Key points: He gives an example that if the market rises from 40 to 45, and then retraces within three points above or below the 40 price level before continuing to rise, then it is a good time to follow up, and this is the key point.
This key point is also quite reliable.
Because this post is not about technicals, so these three moves are just enough to introduce.
Sharing another article:
As the most exemplary successful investor for retail investors, Darvas's growth experience is particularly worth learning. He went through three stages of transformation and became an expert stock trader.
The first stage of stock trading is naturally to focus on the stocks recommended by the people around you. Just like many beginners, this random system doesn't yield good results. Nicholas Darvas fell into the trap of frequent trading and once held 30 stocks, with very poor performance, losing an average of $100 per week.
Afterwards, Darvas started researching information on his own. He subscribed to stock market news, followed financial information, and entered the second stage of stock trading.
At this stage, he started blindly buying stocks recommended by experts, and lost a lot of money again.
In order to better understand the language of the stock exchange and the comments of Wall Street, Darvas started reading all books about the stock market and investment as much as possible. He once said that he had read more than 200 books on the stock market and great speculators.
He decided to take action based on the market's own behavior and started studying the price changes between stocks seriously. He looked for patterns, price behavior, and their actual performance by studying past stock market guides and price charts.
He continued to combine fundamental analysis and technical analysis, and later formed his own "box theory". In this way, he entered the third stage of stock trading, the stage where his own stock trading pattern formed.
Three, be ruthless: small tolerance leads to chaotic strategies.
It is difficult to make decisions about entering the stock market, difficult to hold positions without moving, and difficult to decide when to exit. The difficulty lies in being wishy-washy. The solution is to be ruthless and endure with determination.
The fatigue of being muddy and watery lies in one word of love; The charm of following the circle lies in the word of endurance.
Stock trading is about abandoning impatience and greed, cultivating patience and decisiveness. This is not only a process of improving operational skills, but also a process of cultivating the mind, transforming temperament.
When the opening signal appears, one must decisively open a position at the first time. When there is a major signal, one must dare to open a large position. This requires being ruthless with oneself, otherwise a good opportunity will be missed and regrets will follow.
During holding, one must be accustomed to the 'normal retracement' fluctuations, not to be obsessed with minor ups and downs. This is very important and also very difficult to achieve. International expert traders know how important this is, but they are often hindered by this point. Sometimes, they cannot overcome the inner urge, so they can only pretend to be dead, sleep, act foolishly, etc., to force themselves to adhere to the principle of not acting lightly.
Holding mid-term is about grasping the trend, like riding a horse. If you always dismount or chase after the horse, not only will you not enjoy the fun of riding, but you will also waste a lot of energy, human resources, and financial resources. One should cultivate the brave quality, broad-mindedness, and believe that they are an excellent knight who can control a spirited horse, trust themselves as well as the spirited horse. With the reins in hand, let the spirited horse run freely, as long as they do not violate their principles, interference is not allowed, in this way, one can control the trend, rather than being controlled by it.
What we want is to control the trend, to ride a horse, not to race against the horse, be ridden by the horse, abandoned by the trend, or swayed by fluctuations.
Mid-term holding is the most important and also the most difficult. One must be as ruthless as parents are to a crying baby in order to achieve the correct result and desired happiness.
Exiting when the exit signal appears, and cutting losses when the stop-loss signal appears, both require the courage to make a decisive decision. It is not difficult to have wisdom, but it is not easy to have courage. Stock trading is not only an exercise in wisdom, but also the cultivation of a strong inner character.
The cultivation of courage and broad-mindedness is far more important than intellectual education and knowledge learning. Stock trading not only requires professional knowledge and mature theories, but also a man's demeanor and sentiment that stands tall. The stock market is like a university, where one hones their knowledge, shapes their character, brings wealth, and creates miracles.
If "seeing far" is about cultivating foresight and insight, developing a broad perspective and demeanor in doing big things, then "being able to endure" is about fostering a calm and dignified mentality, and training oneself to be a strategizing leader. "Being able to be ruthless" is about cultivating a resolute and decisive will, and developing courage and broad-mindedness.
It is not only the improvement of technical skills, but also the enhancement of quality of life, the sublimation of personal qualities, and the transcendence of the depth of life and the meaning of existence.
Fourth, being at ease: Those who can turn ordinary loneliness into leisure are immortals.
Stock trading, like a hunter, requires finding prey, seizing the right moment, and taking action. Waiting is the majority of the time, while pulling the trigger is just a momentary action. The only action required in stock trading is a few keyboard strokes, the rest is observation and waiting.
If this waiting is painful, it is loneliness; if it is peaceful and joyful, it is leisure.
To seize the key is to take the initiative. To take the initiative is to make waiting easier and more comfortable. In order to avoid getting stuck in passive agony, one needs to know what the key things are.
Fifth, being calm and composed: Cultivating a detached mind is a lifelong pursuit of knowledge and experience.
Develop a mindset of not being afraid of 'normal pullbacks' and develop the habit of being alert to 'danger signals'. By doing these two things, you can remain calm and composed.
'Normal pullbacks' refer to the normal fluctuations that do not disrupt the trend, while 'danger signals' refer to sudden changes that pose a threat to the trend. The former requires holding onto positions without making any moves, while the latter requires exiting the market and observing. The ability to handle these actions and inactions is crucial in determining whether your mindset can remain calm.
Your mindset depends on grasping the 'key points' and distinguishing between 'normal pullbacks' and 'danger signals'.
Being calm and composed means having a peaceful and deep state of mind. This is the ability required to accomplish great things.
What is being calm and composed? It means having a calm state of mind, a stable and steady mood, and not being disturbed by impatience, restlessness, or fluctuations.
What is being composed? It means having a long-term perspective, making big moves, and not being narrow-minded or seeking quick gains.
Trends have stability, which is the theoretical basis for maintaining a stable mindset. This is not only of technical significance, but more importantly, it relates to the cultivation of one's mindset.
The opposite of trends is volatility. Volatility lacks stability and certainty. If your mood is determined by volatility, then suffering begins and it becomes difficult to break free from it.
Is it a laughing matter or a headache? The determining factor is here.
Time and space complement each other. Only with a long time can there be a large space. If you want to achieve big profits, you must have enough time duration. If you want to have a grand vision, you must have a long-term perspective. Only with a long-term perspective can you have a grand vision. Atmosphere refers to the grandness of the time and space framework. Only with a grand time and space framework can you have a broad mindset.
When the ears and eyes are broad, the world becomes narrow. If you focus on trivial matters, the days and months become long. When the time and space framework is grand, the days and months become long and the world becomes broad. The mountains, rivers, wind, and moon have no owners, those who have the leisure and the ability to appreciate them are the true owners. The leisure and ability to appreciate come from the ethereal state of mind and the abundance of time and space within the heart.
The more you want to expand time and space, the more you need to grasp the key points. The more accurate the key points, the more free time you can squeeze out. This precise judgment requires profound wisdom and grasping the key points requires even more profound courage.
This is the philosophy of operation and the cultivation of mindset.
Seven, talented individuals with a calm nature are great talents; intelligent individuals with a harmonious temperament are great intellectuals.
This is something that cannot be understood until reaching this level. In general, combat pursues speed, strength, swiftness, ferocity, and accuracy. The entire person seems to be neurotic, filled with hostility. However, Tai Chi, the pinnacle of martial arts, presents a different scene. It uses stillness to conquer movement, uses softness to overcome hardness, applies intention without using force, and four ounces can move a thousand jin. A feather cannot be added and a fly cannot land.
A beautiful person without the airs of makeup, a talented person without the airs of books, a warrior without the airs of swords can be considered as reaching the ultimate. The advanced state of martial arts is not ferocity and hostility, but rather relaxation and softness, being gentle and composed.
The mentality used in trading is more important than the technique. Trading should be done slowly, with a calm mind, in order to see the situation clearly, grasp the key points, and control the trends. The ultimate in trading is the same as the ultimate in skill - naturalness, adapting to circumstances naturally. Trading is also about following the changes of the situation in a natural way.
2. Endurance: Pointing out the world with a smile.
3. Determination: Small tolerance leads to chaos in grand plans.
Fourth, being at ease: Those who can turn ordinary loneliness into leisure are immortals.
Fifth, being calm and composed: Cultivating a detached mind is a lifelong pursuit of knowledge and experience.
Being calm and composed means having a peaceful and deep state of mind. This is the ability required to accomplish great things.
Seven, talented individuals with a calm nature are great talents; intelligent individuals with a harmonious temperament are great intellectuals.
Before starting, a few words need to be said:
First mindset, second technique, third capital. With mastery, wealth comes and goes, and for a master, capital is not a problem; to act without acting, to have no concerns, to taste inaction, to act without acting, to experience a leisurely life in the stock market, to live in the mortal world yet enjoy the realm of the immortals.
悠闲与忙碌，是大师与高手的区别。高手掌握技术，逻辑缜密，思维严谨，随行情起伏和市场信息跳上跳下，活像一只猴子，技术再高也难免不落一个下乘，生活情趣荡然无存了。
大师或宗师悟透禅机而弃绝常规理论、看法，超越了基本面、技术面，不再纠缠于价值投资、技术分析，跳出了信息、技术、波动的纠缠，超然物外，享受丰厚的利润、宁静的生活，采菊东篱下，悠然见南山。
炒股的境界：扁鹊三兄弟的故事。
魏文王问名医扁鹊：“你们家兄弟三人，都精于医术，到底哪一位最好呢？
扁鹊答：长兄最好，中兄次之，我最差。
文王再问：那么为什么你最出名呢.
扁鹊答：长兄治病，是治病于病情发作之前。由于一般人不知道他事先能铲除病因，所以他的名气无法传出去。
中兄治病，是治病于病情初起之时。一般人以为他只能治轻微的小病，所以他的名气只及本乡里。而我是治病于病情严重之时。一般人都看到我在经脉上穿针管放血、在皮肤上敷药等大手术，所以以为我的医术高明，名气因此响遍全国。”
Who should admire the three brothers of Bian Que? This is a difficult question, because they are all studying medicine. But in the capital markets, this dilemma does not exist. The proper way is to make money in silence, and naturally the eldest brother of Bian Que is the most clever. In stock trading, we should learn from the eldest brother of Bian Que, to be effortless, to have no business, no taste, and to enjoy wealth, harmony, and tranquility in a leisurely manner. Instead of being busy and jumping around.
This post is about how to become the eldest brother of Bian Que in the stock market, surpassing capital, information, value investment, and technical analysis, and directly touching the deepest essence of the market. Now let's get to the point and give everyone some guidance, so that everyone can see the way through the guidance to a peaceful place.
1. See through: perceive the trend and make big money
The reason why the truth is difficult to grasp is not because it is too difficult, but because it is too simple.
Those who trade stocks are all smart people. If they can't make money or lose money, it's not because everyone is stupid, but because everyone is too smart. In the stock market, it has always been the money of the stupid people that the smart people make. Maybe everyone is not convinced, and even more do not believe that this is the case.
Let's take a look at an example:
The author of 'Short-term Trading Secrets', Larry Williams, makes money by following the two words 'sit and wait'. He said that he had been unable to resist the impulse to enter the market many times, but every impulse made him lose money, which made him heartbroken. He switched back to his original method and made money. He said that he made millions of dollars in profit by waiting, that's right, by waiting.
In 'Reminiscences of a Stock Operator', Jesse Livermore experienced ups and downs three times in his life. As one of the greatest investors in American trading history, he eventually chose suicide under the burden of depression, considering his whole life a failure. In fact, he also made money by playing dead. By controlling his desire and impulse to trade through sleeping, he avoided failure and let his profits fly. It's just that he was too smart and couldn't control his impulse to trade, which ultimately caused a tragedy for himself.
Where is the mystery?
Westerners do not know and cannot comprehend this, which is not strange. But as Chinese people, we cannot be so unclear about it because the Western culture does not provide guidance to lead people out of confusion. However, we Chinese have a natural cultural foundation of being ingenious in simplicity, wise in foolishness, silent in sound, and invisible in substance.
"The superior person listens to the way and diligently practices it; the average person listens to the way, half believing and half doubting; the inferior person listens to the way, laughing out loud, as if it were a joke."
Intelligent people of the highest level can understand and readily implement the truth when they hear it. People of average intelligence will have doubts when they hear the truth. And the fools of the lowest level always think highly of themselves, considering themselves clever. They not only do not understand the truth but also laugh heartily. Therefore, Laozi tells everyone the standard to distinguish the truth: what most people disdainfully overlook and laugh at is the truth.
Because fools always make up the majority, and their numbers are not sufficient to be the truth. We Chinese have the unique advantage, and I hope that the majority of stockholders can diligently study the culture of our ancestors, join the ranks of the few wise individuals, whether it is for the sake of our country or out of respect for our ancestors. In short, learning these things will make your lives better.
Stock speculation is a simple matter, but if I were to state it directly, everyone would surely scoff at it and overlook it, causing all my efforts to be in vain. It is not only a waste, but it also goes against the compassionate purpose of the Western spiritual leader to liberate sentient beings, as it leaves many people who could have been liberated, struggling in the stock market.
The secret is: you can only make money when the market is rising.
Everyone may think that this is a meaningless statement, but it is the truth. Because it is so simple, everyone ignores this truth and considers it to be nonsense.
Only when the market is rising can you make money. This means that when the market is in a downtrend, it's best to stay out of the market and not go against it, or you'll have trouble with your money.
You can only make money when the market is rising. This means that when the market is oscillating and consolidating, it's best not to mess around and waste effort, as it's not worth it.
You can only make money when the market is rising. This means that when the market is in an uptrend, you should follow and then wait, sleep, or play possum until a major turning point appears.
Trading requires fees, and every trade means more fees. Doing too many trades just means giving away money.
Once a trend is established, the battle between long and short sides is already decided, and it's not easy to change in the short term. Trends will continue and require time to persist. Time is space, and being willing to wait is the only way to see the expansion of profit space.
Those who have never tasted the sweetness of waiting will find it hard to appreciate the leisurely and carefree nature of it.
When you feel overwhelmed and exhausted in the stock market, take a break and imagine focusing on one direction for two weeks to a month, not caring about the fluctuations in between. That would be true freedom.
Why the agony? Because every fluctuation determines your fate, and leaves a heavy weight on your heart, causing endless pain.
In fact, if the market is in an upward trend, it will naturally rise, and there will be fluctuations which are normal phenomena. By not getting entangled in these details, you can free yourself.
If you get caught up in the fluctuations, every movement of the market will determine your mood. Can you handle the ups and downs of your emotions? Can you avoid confusion? Clearly, it is an upward trend, but a small downward fluctuation makes you feel like a disaster has struck. Not to mention the torment of the mind, if you can't hold on and sell at the lowest point, it becomes even more heartbreaking.
How to free yourself: Don't let fluctuations affect your mood.
Follow the trend. Until a trend is fully developed, it will not end. You can wait confidently. Only care about trends and ignore fluctuations, and you will go from being entangled on this side to a leisurely state on the other side.
When you place a trade, what you are eating is a trend. How confident and solid it makes your inner self feel.
When you place a trade, you are looking at the long-term. You don't care about small fluctuations, and therefore you are free from inner conflicts and torment. Your inner self no longer experiences ups and downs, and that is how calm you become.
When you place a trade, you are reaping big profits. Even when handling large sums of money, you can handle it with ease. You will appear calm, composed, noble, and graceful. That's the style of someone who accomplishes important things and earns big money.
When you place a trade, you see through the fluctuations and grasp the essence of the trend. You no longer worry unnecessarily, but instead surpass the fluctuations and control the trend. The market becomes your good friend. That's where wisdom and good fortune lie.
No wind is favorable for a ship without direction.
If a person does not know where they are heading, then no wind is a favorable wind. - Seneca, "Moral Letters".
This statement is also fitting for the stock market - if a person cannot see the trend of the market, then any fluctuations can be agonizing.
The root of all mindset issues lies here, and the solution to all mindset issues is also found here.
On the contrary, if one can see the essence of the trend, then any fluctuations become their own friend. High selling and low buying in the upward trend, following the trend on a macro level, going against the trend on a micro level, thereby maximizing profits. In this way, fluctuations become their own friend and a source of happiness.
"Simplicity" is the greatest achievement throughout history.
There is a saying in psychology that is enlightening: people with a simple mind always need complex embellishments and fillings, while people with a complex mind have a special and paranoid demand for simplicity.
The path to simplicity is not something that the wisest person cannot achieve.
Second, can withstand: talk and laugh to show the way
The common characteristic of people who make money in the stock market is: can withstand
It is not difficult to see the trend. Even a three-year-old child can know whether the trend is up or down. However, experienced traders may not be able to withstand it.
Williams relies on being foolish and pretending to be dead; Nicolas Darvas sleeps when he can't stand it; Livermore is known as the greatest trader, and he also experienced five bankruptcies because he couldn't stand it, and finally chose to commit suicide. Buffett became the stock market god, and the reason he is superior to them is not in technology or theory, but in the ability to withstand three words.
Even these experts and stars in the investment industry find it difficult to withstand, which shows how rare the word "endurance" is.
The first point explains the essence of grasping the trend through the phenomenon of volatility. This emphasizes how to persist in catching the trend, which is the most difficult part. It is so difficult that even the genius traders cannot bear it. They have to force themselves to sleep and not look at the market in order to persist.
It seems that Buffett also doesn't look at the market! Because those fluctuations do not affect the essence of the trend, but they will affect the ups and downs of emotions, and interfere with one's judgment of the trend. One cannot bear it and will lead to major mistakes.
So, you must, must, must remember this principle: can withstand. Otherwise, the trend has nothing to do with you.
Understanding the nature of trends and being able to withstand the interference of fluctuations is the next step in choosing the buying and selling points, which is the art of pointing the trend.
How to determine the key points of buying and selling. Let me introduce some tricks of investment geniuses to everyone:
1. Williams' only trick to make millions of dollars: follow the breakout market, set stop losses and wait, play dead for 3 days, 5 days, two weeks... and exit at the last moment.
2. Nicholas Darvas, known as the king of retail investors for his book "How I Made 2 Million Dollars in the Stock Market", is actually a "one trick pony". He is the founder of the "box theory".
He found that the combination of price and the trading volume of growth is a powerful source of demand that drives stocks forward. In this trend, stocks will move within a series of structures he calls boxes. For example, a stock will jump between the high point and the low point (such as $35 and $40), forming a 35/40 box.
If the stock price exceeds the top position of 40 dollars in the example above, especially accompanied by an increase in trading volume, he will buy the stock. This sign proves to him that the stock is ready for the next level of box movement and has enough demand for price increase. If it falls below the bottom of the box, he will immediately sell the stock. Stock "box theory" is a short-term operational treasure.
Everyone should remember that this retail investor king only has one trick from beginning to end. This one trick made him invincible. If everyone uses this trick, can't they be sure? The same behavior pattern yields the same results. Just replicate Darvas' behavior pattern and you will get Darvas' results.
His biggest challenge, like Williams, is not in determining the key points, but in controlling the impulse to trade.
3. The key points of Livermore.
Livermore only trades stocks when the large cap is on an upward trend, and chooses the leader (leading sector, individual stocks) in the upward trend. His trading involves three important concepts: normal retracement, danger signals, key points.
Non-violent pullbacks are all normal retracements. He emphasizes that this kind of pullback in the market is completely normal. Never be afraid of this normal action. But once there is a violent pullback, then one should be very afraid, and this is a danger signal. Another danger signal is when the market surges to a price level, retraces, and then continues to rise, reaching the previous price level and retreats again.
Key points: He gives an example that if the market rises from 40 to 45, and then retraces within three points above or below the 40 price level before continuing to rise, then it is a good time to follow up, and this is the key point.
This key point is also quite reliable.
Because this post is not about technicals, so these three moves are just enough to introduce.
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As the most exemplary successful investor for retail investors, Darvas's growth experience is particularly worth learning. He went through three stages of transformation and became an expert stock trader.
The first stage of stock trading is naturally to focus on the stocks recommended by the people around you. Just like many beginners, this random system doesn't yield good results. Nicholas Darvas fell into the trap of frequent trading and once held 30 stocks, with very poor performance, losing an average of $100 per week.
Afterwards, Darvas started researching information on his own. He subscribed to stock market news, followed financial information, and entered the second stage of stock trading.
At this stage, he started blindly buying stocks recommended by experts, and lost a lot of money again.
In order to better understand the language of the stock exchange and the comments of Wall Street, Darvas started reading all books about the stock market and investment as much as possible. He once said that he had read more than 200 books on the stock market and great speculators.
He decided to take action based on the market's own behavior and started studying the price changes between stocks seriously. He looked for patterns, price behavior, and their actual performance by studying past stock market guides and price charts.
He continued to combine fundamental analysis and technical analysis, and later formed his own "box theory". In this way, he entered the third stage of stock trading, the stage where his own stock trading pattern formed.
Three, be ruthless: small tolerance leads to chaotic strategies.
It is difficult to make decisions about entering the stock market, difficult to hold positions without moving, and difficult to decide when to exit. The difficulty lies in being wishy-washy. The solution is to be ruthless and endure with determination.
The fatigue of being muddy and watery lies in one word of love; The charm of following the circle lies in the word of endurance.
Stock trading is about abandoning impatience and greed, cultivating patience and decisiveness. This is not only a process of improving operational skills, but also a process of cultivating the mind, transforming temperament.
When the opening signal appears, one must decisively open a position at the first time. When there is a major signal, one must dare to open a large position. This requires being ruthless with oneself, otherwise a good opportunity will be missed and regrets will follow.
During holding, one must be accustomed to the 'normal retracement' fluctuations, not to be obsessed with minor ups and downs. This is very important and also very difficult to achieve. International expert traders know how important this is, but they are often hindered by this point. Sometimes, they cannot overcome the inner urge, so they can only pretend to be dead, sleep, act foolishly, etc., to force themselves to adhere to the principle of not acting lightly.
Holding mid-term is about grasping the trend, like riding a horse. If you always dismount or chase after the horse, not only will you not enjoy the fun of riding, but you will also waste a lot of energy, human resources, and financial resources. One should cultivate the brave quality, broad-mindedness, and believe that they are an excellent knight who can control a spirited horse, trust themselves as well as the spirited horse. With the reins in hand, let the spirited horse run freely, as long as they do not violate their principles, interference is not allowed, in this way, one can control the trend, rather than being controlled by it.
What we want is to control the trend, to ride a horse, not to race against the horse, be ridden by the horse, abandoned by the trend, or swayed by fluctuations.
Mid-term holding is the most important and also the most difficult. One must be as ruthless as parents are to a crying baby in order to achieve the correct result and desired happiness.
Exiting when the exit signal appears, and cutting losses when the stop-loss signal appears, both require the courage to make a decisive decision. It is not difficult to have wisdom, but it is not easy to have courage. Stock trading is not only an exercise in wisdom, but also the cultivation of a strong inner character.
The cultivation of courage and broad-mindedness is far more important than intellectual education and knowledge learning. Stock trading not only requires professional knowledge and mature theories, but also a man's demeanor and sentiment that stands tall. The stock market is like a university, where one hones their knowledge, shapes their character, brings wealth, and creates miracles.
If "seeing far" is about cultivating foresight and insight, developing a broad perspective and demeanor in doing big things, then "being able to endure" is about fostering a calm and dignified mentality, and training oneself to be a strategizing leader. "Being able to be ruthless" is about cultivating a resolute and decisive will, and developing courage and broad-mindedness.
It is not only the improvement of technical skills, but also the enhancement of quality of life, the sublimation of personal qualities, and the transcendence of the depth of life and the meaning of existence.
Fourth, being at ease: Those who can turn ordinary loneliness into leisure are immortals.
Stock trading, like a hunter, requires finding prey, seizing the right moment, and taking action. Waiting is the majority of the time, while pulling the trigger is just a momentary action. The only action required in stock trading is a few keyboard strokes, the rest is observation and waiting.
If this waiting is painful, it is loneliness; if it is peaceful and joyful, it is leisure.
To seize the key is to take the initiative. To take the initiative is to make waiting easier and more comfortable. In order to avoid getting stuck in passive agony, one needs to know what the key things are.
Fifth, being calm and composed: Cultivating a detached mind is a lifelong pursuit of knowledge and experience.
Develop a mindset of not being afraid of 'normal pullbacks' and develop the habit of being alert to 'danger signals'. By doing these two things, you can remain calm and composed.
'Normal pullbacks' refer to the normal fluctuations that do not disrupt the trend, while 'danger signals' refer to sudden changes that pose a threat to the trend. The former requires holding onto positions without making any moves, while the latter requires exiting the market and observing. The ability to handle these actions and inactions is crucial in determining whether your mindset can remain calm.
Your mindset depends on grasping the 'key points' and distinguishing between 'normal pullbacks' and 'danger signals'.
Being calm and composed means having a peaceful and deep state of mind. This is the ability required to accomplish great things.
What is being calm and composed? It means having a calm state of mind, a stable and steady mood, and not being disturbed by impatience, restlessness, or fluctuations.
What is being composed? It means having a long-term perspective, making big moves, and not being narrow-minded or seeking quick gains.
Trends have stability, which is the theoretical basis for maintaining a stable mindset. This is not only of technical significance, but more importantly, it relates to the cultivation of one's mindset.
The opposite of trends is volatility. Volatility lacks stability and certainty. If your mood is determined by volatility, then suffering begins and it becomes difficult to break free from it.
Is it a laughing matter or a headache? The determining factor is here.
Time and space complement each other. Only with a long time can there be a large space. If you want to achieve big profits, you must have enough time duration. If you want to have a grand vision, you must have a long-term perspective. Only with a long-term perspective can you have a grand vision. Atmosphere refers to the grandness of the time and space framework. Only with a grand time and space framework can you have a broad mindset.
When the ears and eyes are broad, the world becomes narrow. If you focus on trivial matters, the days and months become long. When the time and space framework is grand, the days and months become long and the world becomes broad. The mountains, rivers, wind, and moon have no owners, those who have the leisure and the ability to appreciate them are the true owners. The leisure and ability to appreciate come from the ethereal state of mind and the abundance of time and space within the heart.
The more you want to expand time and space, the more you need to grasp the key points. The more accurate the key points, the more free time you can squeeze out. This precise judgment requires profound wisdom and grasping the key points requires even more profound courage.
This is the philosophy of operation and the cultivation of mindset.
Seven, talented individuals with a calm nature are great talents; intelligent individuals with a harmonious temperament are great intellectuals.
This is something that cannot be understood until reaching this level. In general, combat pursues speed, strength, swiftness, ferocity, and accuracy. The entire person seems to be neurotic, filled with hostility. However, Tai Chi, the pinnacle of martial arts, presents a different scene. It uses stillness to conquer movement, uses softness to overcome hardness, applies intention without using force, and four ounces can move a thousand jin. A feather cannot be added and a fly cannot land.
A beautiful person without the airs of makeup, a talented person without the airs of books, a warrior without the airs of swords can be considered as reaching the ultimate. The advanced state of martial arts is not ferocity and hostility, but rather relaxation and softness, being gentle and composed.
The mentality used in trading is more important than the technique. Trading should be done slowly, with a calm mind, in order to see the situation clearly, grasp the key points, and control the trends. The ultimate in trading is the same as the ultimate in skill - naturalness, adapting to circumstances naturally. Trading is also about following the changes of the situation in a natural way.
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