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The essence of stock trading lies in seeking within.

80 Comments 2024-07-10

To be honest, after more than a decade of investing, I've found that investing is quite challenging, especially when it comes to stock trading.

The stock market is ever-changing, and it feels different every day.

Even when losing money, the feelings at different stages are also quite different.

Today it falls, tomorrow it rises; the reasons for the rise and fall every day seem to be different as well.

Finding the reasons for market fluctuations is a daily must for investors, to understand why it rose today and whether it will fall tomorrow.

Therefore, everyone's goal is to seek externally for reasons.

We need to find out why the market rises and why it falls.

But knowing the reasons does not solve the problem.

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Just like in the past two years, the market always attributed the reasons for the decline to foreign capital's large-scale short selling.

In the past two years, the reasons for the market's decline have been attributed to quantitative trading, to the margin trading and securities lending, to major shareholders' reduction, and to the existence of market system flaws, and the lack of penalty strength, etc.In fact, two points have been overlooked.

Firstly, even if the cause is found, it cannot change the outcome that has already occurred. Even if you find the reason for today's rise or fall, it cannot change the decisions that have already been made. The fact of losing money is a result and cannot be changed. How to make money in the future is the key. Whether the reason you find is something you can control and whether it will affect your future earnings is the key. If you think that many reasons are sudden and uncontrollable, then you can only ignore this reason. Because this reason does not generate value for you and cannot help you make money at some point in the future. What you are busy looking for, if it does not help your future investment, is just a waste of your time.

Secondly, although you cannot change the market, you can change your own trading.A sharp drop doesn't matter; if you're not holding any positions, you won't suffer any losses.

Retail investors always claim they can't short sell, so the market is unfair to their trading, and it's a flaw in the system.

Not to mention whether retail investors can borrow shares or buy stock index futures, but they can choose not to participate in the market in stages.

The way retail investors play and the rules they follow are indeed different from those of the main capital forces.

The advanced rules they play with have thresholds, and if you have the qualifications, you can also play.

You can't expect a retail investor with 10,000 to be treated fairly and equally with a main capital force with 100 million.

It's like going to some restaurants where the private room has a minimum consumption requirement, but the main hall does not.

When you take a plane or high-speed train, first class does cost more, and you can choose to sit in economy class or buy a second-class seat.

In the capital market, the priority is to make profits, and it is inherently designed to serve large capital, with different ways of playing.

What retail investors need to do is to find their own way of playing.Why do some retail investors make money while most lose?

That's because some have found the right way to play, knowing how to play, while most are still in the dark.

The so-called seeking within is to find one's own survival mode, profit-making mode, instead of looking for reasons in the market.

The reasons in the market cannot solve your problem of making money.

The reasons in the market are ultimately just a result, and it is the result caused by sudden events.

You can only control what you can control and keep your hands in check.

When to buy, when not to buy, and if you buy, what to buy, which ones to buy.

These are things that one's own decision can control, and they are also the key to the success or failure of stock trading.

Some people say that stock trading is a kind of cultivation.From my personal perspective, I strongly agree with this statement.

The essence of self-cultivation is to seek inwardly and to break through oneself.

The cultivation in the stock market mainly focuses on several aspects.

Firstly, it is the transformation from information to cognition.

What we receive is the information from the market.

Information itself has value, but it does not necessarily mean that the market will rise or fall.

Therefore, after obtaining information, what we need is the ability to analyze information.

In other words, how to turn information into logic to predict the future direction of the market.

One of the key points of cultivation is how to see through the logic of information transmission and predict the decisions that large funds will make, thereby judging the potential direction of the market.

However, most people, after obtaining information, lack their own cognitive ability and can only listen to others' analysis.The matter of price fluctuations is always a matter of subjective opinion, with each side believing they have a valid point. Often, this can blind us, making it difficult to make judgments.

As a result, our judgments may be wrong, and our understanding has not yet grown.

Secondly, the implementation from cognition to execution.

You know what it's about, but it's always wrong in trading, it's not feasible.

That's because there is a lack of execution power.

Every time we talk about execution power, many people will mention the mindset, more precisely, the trading mindset.

There is a big gap between knowing and doing.

When trading, the desire to buy or sell and actually taking action to buy or sell are two different things.

The execution power in trading determines the success or failure of the trade, and a good trade must be devoid of personal emotions.

Precisely because we are all mortals, there will inevitably be an impact on our mindset when trading, which is why cultivation is necessary.But when we regard the assets in our accounts as a mere string of numbers, the execution of transactions naturally improves.

Thirdly, from the summary of practical results to experience.

The third step in the practice of the stock market is actually progress.

The source of progress comes from trial and error.

Every time we make a transaction, there will definitely be a result, whether it is right or wrong, whether it is profit or loss.

All progress comes from summarizing this result again and again, and then correcting our behavior.

Many people like to keep learning, trying all kinds of methods, but they never summarize.

This leads to them always being in the process from zero to one, unable to produce qualitative change through quantitative change.

No trading method can always make money and always win, which is a matter of probability.

Therefore, we need to find detailed problems within the big framework of transactions, to improve and upgrade, and increase our success rate.Fourthly, find the unchanging laws amidst change.

This market changes every day, which means that the environment for self-cultivation is different every day.

The world we live in is also changing every day.

But some laws are actually eternal, just like the sun rising in the east and setting in the west every day.

There are many laws in the stock market, the simplest one is that if it rises too much, it will fall, and if it falls too much, it will rise.

The laws of the market need us to explore and continuously verify repeatedly.

Successful people do not complain about how bad the external environment is, always looking for ways to succeed.

And the losers always attribute their failures to various reasons.

Seeking inwardly and outwardly directly determines whether one can finally reach the place they want to go.

The truth is actually the same, it is like this in the stock market, and it is also like this in life.

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