Source: Red and Green As centralized investors, our goal is to have a greater understanding of our companies than any Wall Street investor. If we are willing to work hard and learn as much as possible about our companies, we are likely to know more than general investors, which is all we need to gain a competitive advantage. On the product structure side, the operating income of products worth 10-30 billion yuan is 401/1288/60 million yuan, respectively, in 2023, the overall sales volume of the company reached 18,000 kiloliters, a year-on-year increase of 28.10%, showing significant growth.

Too many people spend too much time dealing with what will happen in the future, but are at a loss for what is happening now. This makes their trades ineffective and they always try to stay ahead of the market, ignoring the reality of the market. Their trades are in a dream world and lack the foundation of reality. This violates the essence of the trading system, and the correct trading idea is the premise of using the trading system.

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A trading system is only a trading tool. It is not the same thing to obtain a trading system and profit through a trading system. The ability to use the trading system is far more important than the trading system itself, just like the key to deciding the outcome of a war is the people, not the weapons. A well-designed trading system is only a necessary condition for successful investment, not a sufficient one. The ability to successfully execute the trading system is the greatest test of traders' psychological qualities.

In the eyes of traders, market risks cannot be avoided, and risk-free investment is impossible. Therefore, profit is the return for the risks taken, and maximizing profits under the minimum risk is the basic principle of investment.

Do not think that a profitable trading system can guarantee every trade to be successful! Any profit is composed of small losses and big wins, and any trading system has weaknesses, and losses are inevitable.

For trend-following systems, it does not require the number of profits to be greater than the number of losses. It only requires continuous use of small stop losses to find large profit opportunities. Such a system requires the user to be prepared to accept small losses continuously.

And this hurdle is the highest. It not only requires rich practical investment experience, deep understanding of trading systems and markets, but also the individual's personality, values, and understanding of the world to reach a realm where they can control and adhere to the trading system. They must regard the trading system as part of their lifestyle, integrate it into their thoughts and souls, and merge with the trading system to achieve the effect of passive investment. I think that's just about it.

When the system is in a losing period, do not easily think that the system needs to be changed or replaced. Losses are normal and must be accepted. At this time, you should tell yourself how to improve your ability to deal with difficulties and patience. Abandoning the system during difficult periods will always be haunted by losses, and profits will only wave and smile in the distance.

During the profitable period of the system, do not play smart and think that you can use your trading ability to improve the efficiency of the system. At this time, obeying the discipline is more important than anything else!

The difficult period of the system can improve your trading ability, and the harvest period of the system can test your self-discipline. The trading system is constantly helping you to improve and profit.

The essence of system trading is to deal with what is happening, not what will happen in the future. It trades according to trading signals, not with predictions of the market.

Too many people spend too much time dealing with what will happen in the future, but are at a loss for what is happening now. This makes their trades ineffective and they always try to stay ahead of the market, ignoring the reality of the market. Their trades are in a dream world and lack the foundation of reality. This violates the essence of the trading system, and the correct trading idea is the premise of using the trading system.

Three.

For system traders, the rise and fall of the market is no longer important. What matters is the execution of trading signals. This is precisely the most difficult thing to do, because the trading signals of the system often conflict with your view of the market. Many trading opportunities are missed in the hesitation and hesitation of traders, and this is also the key reason why the trading results of using the same trading system vary greatly. System trading has shifted from judging the rise and fall to executing trading discipline.

Traders often make judgments on the rise and fall of the market, which will inevitably affect the effective use of the trading system. Whether the market is rising or falling, the system will issue trading signals at critical moments, and properly executing the trading system can greatly simplify our trading and make it more simple and effective. This is also the fundamental reason why trading systems are so important. Executing the trading system, obeying discipline and principles will help you profit, rather than complex analysis and thinking.

Without the help of a trading system, traders may need many years of exploration to reach the level of psychological qualities required for successful trading. With the help of a trading system, this process may be greatly accelerated. Traders can simply judge the soundness of their psychological qualities based on their own level of execution of the signal system.

Editor/Lambor