How many years have you gone through to achieve stable profits, and what stages

2024-05-23

It took me over four years to transition from the beginning of trading to gradually achieving stable profits, a process that can be described with the phrase "life without desire."

Initially, I started out making money, and within a few days of my peak moments, I had earned tens of thousands of dollars. At that time, money was not even considered money; it was just a number. However, the higher I stood at the beginning, the harder I fell to the bottom. That's why I eventually lost all my assets, sold my car and house, and finally gave up on fantasies and stopped trading. It was only then that I began to immerse myself in studying techniques and perfecting my system, gradually getting back on track.

Everyone's trading experience is different, as are their life experiences, intelligence, and emotional quotient, so everyone's path to profitability is also different. I will share my own experience, including the process of my mistakes and how I slowly got back on track to achieve stable profits, which can serve as a reference for everyone.

1. At the beginning of trading, I encountered beginner's luck, which led to both massive profits and losses.

When I first started trading, I was attracted by the trading experiences of a gold trader at a dinner party, and I thought trading was a magical, high-end industry that could make a lot of money.

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Later, I casually downloaded a trading software, learned a bit about candlestick charts, and started blindly entering the market. At that time, I never expected to lose money, thinking that with my ability, making money was a very simple thing.

Indeed, I hit beginner's luck and made a lot of money. I remember one time vividly when I went all-in on a non-farm payroll report and made tens of thousands of dollars in one night. That night, I felt the blood rushing to my head, it was incredibly joyful and thrilling. I felt like the previous 30 years of my life were in vain, and I should have entered the market earlier. The market was like a gold mountain prepared for me, with endless resources to draw from.

However, the good times didn't last long, and I gradually began to incur losses. It started with small losses, then big losses, margin calls, consecutive margin calls, and my hands were shaking every time I placed an order, fearing further losses, unwilling to accept the losses I had already incurred, and still hoping for future profits. So, I gritted my teeth and continued until I lost all my savings.

Years of hard-earned money and the efforts of my life were back to square one in my 30s.

That's why, when I see people entering the market blindly, I always advise them to prioritize risk. If you don't understand trading and lack risk awareness, never do it, because trading can potentially lead you to a desperate situation.2. I began to cease trading, self-study trading techniques and review past trades, and started to establish my own trading system.

After losing all my savings and then losing the money from cashing out my credit cards, I had no more funds to trade, and I had to stop.

At this point, I faced two choices: to leave trading and start working and living again, or to continue searching for profitable methods, getting up from where I fell.

I was quite young at the time, with an indomitable spirit, and because of the substantial losses, it would be difficult to quickly recover by finding another job. Only trading offered a significant room for growth, so I chose to continue looking for profitable methods.

Trading was put on hold, and I started reading books to learn techniques, building a trading system, and conducting a large amount of review and simulation trading to refine my trading system. This stage lasted for about two years, during which I did a massive amount of review work, testing various indicators and trading systems, and perfecting every detail of the trading system.

Through extensive review, I compared many different trading methods and conducted reviews on different types of assets, with hundreds of years of market trends passing before my eyes. It was then that I gradually understood the limitations of trading techniques, saw the essence of trading, and realized the unpredictability of market trends. To achieve profitability, it is necessary to rely on optimizing probabilities.

Thus, I shifted the focus of my research on trading techniques to improving and increasing the success rate and risk-reward ratio of the trading system, seeking a more stable profit and a trading system with lower execution difficulty. I then began to do a large amount of review and simulation trading again, and eventually, I obtained the trading system I currently use.

3. Trading got on the right track, and I patiently accumulated compound interest.

Actually, after doing the review, there was a period where I was very focused on doing simulation trading. Because I had lost so much before, my confidence in my trading system was still not strong enough. So, I started using simulation trading, according to the amount I could bear, to simulate my trading strategy one-to-one.

This step was also crucial because it directly determined my absolute confidence in my trading strategy, as the market conditions were a one-to-one replica of the real ones.After about half a year of using a simulated trading platform, I began to officially transition into live trading. Initially, I didn't have much capital, just a few tens of thousands of US dollars, but I gradually accumulated more over time. It wasn't until a few years later, after confirming the viability of my strategy, that I expanded my capital and started to compound my earnings.

This pretty much sums up my entire trading experience. There are no myths, nor are there many aspects worth singing praises about. The hardships and struggles I've gone through are indeed known only to myself.

If you are going through a similar phase, I hope my experience can serve as a reference for you.

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