There are only two types of people who think trading is simple.

One type is the novices who have just started, believing that trading is a quick way to make money and that they can profit from just about anything, which is essentially running into what is known as "beginner's luck."

The other type consists of those who have been through the ups and downs of trading for years, having experienced all the pitfalls that most traders face, and eventually achieving consistent profits. Looking back, they realize that making a profit from trading is actually a simple matter, and they feel as if they have come full circle.

There is a very classic saying: "See the mountain is a mountain, see the mountain is not a mountain, see the mountain is a mountain again," which is used to describe the process of trading from making a profit, to suffering losses, and back to making a profit.

I will share my own experience and discuss how my trading techniques and philosophies have evolved from complexity to simplicity.

1. Trading techniques ultimately return to simplicity.

In the early stages of my trading career, I was a newcomer who was particularly eager to learn about trading techniques. I read various books and watched videos on trading techniques, taking meticulous notes, always believing that as long as I learned enough, was diligent and hardworking, I would surely find the Holy Grail of trading, the ability to predict the future, and make profits without losses.

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However, reality was not as I had imagined. As I learned and applied my knowledge, my trading results were not satisfactory. All methods were effective for a period and then ineffective, so I kept trying and failing, becoming more and more confused.

Later, through continuous attempts and failures, I discovered some new insights. I realized that all indicators can only be applied to certain market conditions and will be effective for a period and then ineffective. A trading system is composed of indicators, and it can only handle certain market conditions, also having periods of effectiveness and decline.

Moreover, different indicators are suitable for different market conditions, but there is not much difference in their usage, and their profitability is also roughly the same. It's like doing business in life; whether you run a restaurant, a hotel, or a supermarket, as long as you do well in one business and earn the money you deserve, you should not be overly greedy.Upon realizing this, I stopped forcing myself to search for the Holy Grail and instead turned the car around, focusing my energy on how to do well in a few types of trades, one type of market condition is enough.

The countless indicators I had learned before, now I only use two or three regularly, targeting only one type of market condition, and only looking at the overall profit-to-loss ratio and win rate of the trading system. Later, I found that trading has become simpler and simpler, there is no such thing as high-end, it's just a few candlesticks.

Although I speak lightly, the hardships I have experienced, the process of returning from complexity to simplicity, is indeed no different from pulling tendons and extracting bones.

2. The trader's thinking will eventually return to simplicity.

What is trading? I used to think it was just throwing money into the market, and then the market would act like your ATM, making money for you.

Later, during the stage of losses, I felt that it was too difficult to make a profit in trading, with various technologies floating all over the sky, and the pain of various losses, I was very confused at that time, not knowing whether to continue or give up.

In fact, trading is really quite simple, as the name implies, it is the exchange of goods for goods.

We use risk to exchange for the deserved profit, take a small stop loss to exchange for a large profit, this is the essence of trading that we should pursue.

With such thinking, we will not expect pies to fall from the sky, will not expect to find the Holy Grail, get rich overnight, and will not have the naive idea of only making profits without losses.

In addition, we must have a strong sense of risk, after all, all profits are exchanged for risk, and if we cannot control the risk, we cannot make a profit.If we realize this, our expectations for returns will also be rationalized. Because trading is about exchanging risk for profit; the greater the risk you take, the more uncomfortable and painful it is to trade, the greater the potential profit you might gain. If you just want to make a steady profit without so much pain, then your return expectations should be relatively lower, and your position size should be smaller, which will enhance your execution.

So, don't overcomplicate trading, nor mystify the psychology behind it. If you are currently uncomfortable with your trading, feeling pain, and constantly struggling, then do one thing: reduce your position size.

Consider this: do you often see the market correctly but hesitate to place an order? After reducing your position size, give it another try.

When you encounter uncooperative market conditions in trading and suffer significant losses, do you start to doubt your trading system and lack execution? At this point, you should reduce your position size, which will definitely improve the situation.

If you can't hold onto winning trades, also reduce your position size, and you'll find your hands stop shaking, and your emotions become less volatile.

If you simply cannot adhere to strict stop-losses in your trading, reduce your position size as well. When your stop-loss amount is smaller, it won't be as painful for you, and your trading will become more decisive.

It's actually that simple; all your pain stems from overestimating your risk tolerance and those unspeakable greed. Let go, and everything will become clear.