The vast majority of people in this market are doomed to perpetually bewildered, looking for various tricks and cheats, but they can’t succeed in the end. Some methods can be used by others, why can’t I learn them, or even die? Here is a historical story.
In 1861, the Second Opium War directly brought down Beijing. The emperor fled. The Qing court was truly shaken. When the Sixth Prince returned from Jehol, one of his main missions was to "buy" this powerful weapon from foreigners. There are two foreigners, British and French.
The Sixth Prince was apprehensive, wondering if he could be coaxed or deceived, whether six million taels of silver could buy 3,000 guns. Who knew that the moment the foreigners opened their mouths, the British and the French hadn't waited to compete with each other. Yixin immediately heard a reply: "Foreigners are not only willing to sell weapons, but also the method of making weapons."
The sixth prince couldn't help but be overjoyed. But Yixin got the blueprint of the cannon, opened it up, and couldn't help frowning. The cannon is actually very simple, it is a cylindrical shape, stuffed with gunpowder and shells, and can be fired. The real problem is steel production. A cannon weighs a thousand kilograms, and modern warfare often requires hundreds and thousands of cannons. Where did the Qing court find so much pure steel?
And because the chamber pressure of the cannon is very high, it requires high-quality blast furnace refined steel, not a blacksmith's shop in the countryside. On the surface, the Opium War was a victory of hot weapons over cold weapons. In essence, it is a victory for steel production. Although Yixin got the blueprint, he couldn't make it. Because he doesn't have that much steel. China's real industrial revolution began in 1861.
If you look at Li Hongzhang's memorial at that time, "There are hundreds of strategies today, the first is iron." Yixin's top priority is to build the Hanyang Iron Works first. However, steelmaking needs coal, so Kaiping Coal Mine is also needed. From coal mines to steel mills, transportation is required, so there is Jinpu Railway. When the steel is smelted, it needs to be made into guns. This is how Jiangnan Manufacturing General Bureau came into being. The above constituted the main frame of the "Westernization Movement".
Seeing this period of history, I believe that spiritual people will have insights, and if they think about it carefully, they may still feel fear. Because even though the Qing Dynasty vigorously promoted the Westernization Movement, the Westernization Movement failed in the end.
After the Eight-Power Allied Forces, the Qing government couldn't bear it anymore and built a steel industry across the country. Popularize the "New Army". ——Then the new army in Wuhan mutinied—and then the Qing government perished. right! perish!
Looking at the trading history now, many people see that the methods of the masters are good for making money (their weapons are advanced), and then I have to learn, and I have learned their methods (the premise is that someone is willing to show you real weapons. blueprints), and then you will find that even if you get the blueprints, you can't make weapons at all.
Because of your transactional thinking and others, the transactional framework is not on the same dimension at all (an agriculturalized country will never produce industrialized weapons)
So you will find that the real correct way is to start industrialization from scratch, first find iron ore, find coal mines, build railways, open factories, and then you will perish.
(When you have completed the accumulation of knowledge, human nature, psychology, and techniques from all aspects, and completely destroyed the old trading system and thinking, you will be on the road, yes! Only on the road.
Assuming that 1861 was the beginning of industrialization, China's industrialization was basically completed after the founding of the People's Republic of China. Therefore, the establishment of a trading system is also a long process)
In fact, the above paragraph explains why trading technology is not as important as imagined. Real wealth is: trading system, the establishment of trading system is completely personalized. Just as each country's industrialization process is different, each person's system is also different.
- so the conclusion begins
N cases of death in the market:
1. First of all, most people don't realize how terrible your competitors are, and they have already armed their teeth. And you can't even see what the weapon looks like.
2. You see the weapon, but you can't find the real weapon blueprint at all.
3. Fortunately, you saw the real blueprints, and you found that there are still blueprints but you can't make weapons, because you are a backward agricultural country, and you need to quickly carry out the industrialization process.
4. Fortunately, you have survived all kinds of natural and man-made disasters, and you will find that the paths of industrialization are very different. In the end, you need to go step by step by yourself.
5. In fact, even if you have worked hard to complete industrialization, you will find that there is still a difference in choosing a path. If you choose wrong, you will still die.
So seeing this, one should be able to draw a conclusion:
For the vast majority of people, it is impossible to establish an effective and practical trading system throughout their lives.
What is real wealth? is the system. A correct system facing competition without a system is the real dimensionality reduction blow.
The construction of a trading system is an extremely complicated task. It requires an investor to keep learning, thinking, and accumulating experience. Many people have died in these three "continuities". Because this stage requires continuous investment of energy and money to support it.
What's even more frightening is that there is still no return after investing, and I don't know where the end of this suffering is.
This stage may take several years, even 6-8 years. Of course, this refers to the growth time of an investor with ideals and aspirations. Looking around us, many traders are still losing money after more than ten years of losses, because they are not aware of the problems in this area at all.
In short, after this period of time, you can realize the importance of building a system and start trying to build a trading system.
I think that many speculators who enter the trading industry start their careers by listening to the news and trading.
Slowly start learning technical analysis. But slowly, I found that my blood was boiling when I learned these things, and I seemed to have found the magic weapon to win, but when it comes to actual trading, I still trade according to the news and feeling.
At this time, you will find that it is because of psychological factors that you did not follow the technical indicators, so you may find some books such as spiritual practice and Zen to study, in order to overcome the problems in your mentality. No improvement, even if you trade according to these techniques, but sometimes these techniques work and sometimes don't work.
At this time, most people will fall into depression, and part of their trading career is over.
Another small group of people know that there must be something they haven't done. After constant searching, I finally found:
It turns out that technology is sometimes effective and sometimes not effective, which is not necessarily related to the final success of the transaction.
Trading is a matter of probability. As long as you earn more when you earn and lose less when you lose, you can succeed.
After understanding this level, I began to accept the loss in the transaction calmly, and the account equity began to grow continuously. At this time, some traders began to become complacent, thinking that they had finally found the Holy Grail of trading. However, what greeted him was a huge loss. All the money he earned before was not counted, and the principal was also discounted by half. Part of his trading career ended here.
A successful investor is probably like this, step by step from learning technology-learning mentality-learning strategy-learning risk control. Of course, this is not a matter of order, but a process of blending various aspects.
A complete trading system consists of at least the following aspects:
1. Trading technology. Used to judge the market.
2. Mentality. It is used to execute your transaction, and it is not soft at critical moments.
3. Strategy. Use it to plan your trades.
4. Fund management. used for risk control.
These four aspects support each other and are indispensable, and none of them can bring you to the other side of success. Their relationship can be represented by the figure below.
The trading system is such a triangular pyramid, without any apex, it cannot be called a system.
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