Three Core Aspects of Deeply Analyzing the Essence of Trading

Firstly, high-quality trading is like precise fishing; it must aim at areas where funds are concentrated in the market. Even with excellent trading skills, if the market direction or investment category is chosen incorrectly, it will be in vain. Real market opportunities usually exist in areas where major funds are active.

Secondly, controlling losses to maximize gains is the foundation of success. True trading experts do not master mysterious methods or fancy techniques, but rather simplify complex strategies and continuously repeat effective operational patterns. The essence of trading lies in limiting the extent of losses and expanding the profit space. Adhering to this principle, making a profit is just a matter of time.

Finally, the level of cognition determines the height of achievement. Market trends will not cater to individual wishes; rather, it is the investors' thinking that needs to adapt to market changes. To become a qualified market hunter, one must first have trading tools and methodologies that suit oneself. Rushing into the market without preparation will only make one a target for others to profit from.

The fundamental principle of trading is actually not complex, but the number of investors who can truly understand and implement it is quite small.

What are your views and experiences on this?