There is a famous saying on Wall Street: mediocre traders trade with skills, while top traders trade with faith. This fully shows that the difference between a mediocre trader and a trading master is not about skill but faith.
Many people have a profitable trading system that cannot be executed, probably because they suspect the system and have no firm faith in their trading system. Therefore, there is a well-known motto in the futures world: we must not only have a trading system, but also a system of faith.
People often attribute successful traders to their intelligence and hard work. However, this is far from enough. For investors, the key factor controlling the success or failure of a transaction is faith. The size of self-confidence determines the size of a person's achievement.
It is said that as long as Napoleon is on the court, the combat effectiveness of the soldiers can be doubled. Most of the combat effectiveness of an army depends on the confidence of the general. The confidence of the general before the war can greatly enhance the courage and combat effectiveness of the army. If he reveals doubts and falter, the whole army must fall into chaos and panic.
Human spirit and ability, like the military, depends on the support of their will and belief. People with strong faith can achieve magical careers even with the simplest trading systems. Doubtful and timid people achieve nothing. The size of a person's achievement usually does not exceed the size of his self-confidence. The prerequisite for success is self-confidence.
So, how do we form a firm faith in our trading system in the transaction? The answer is simple: familiarize yourself with the system, understand and integrate the system. The technical stuff must be integrated with his convinced trading philosophy to have its inner roots in thought, and such skill can be ingrained.
Technology is actually an idea. Only when you fully understand and believe in the system will you use it without any obstacles. The skills that can be described as hearsay will inevitably lack internal strength, just like the duckweed in the water. Once the wind and rain hit, it will fall and swing.
The process by which traders tend to trade perfectly is a process of moving closer to themselves. It is a process in which an external system and an inner self are constantly integrated, moving toward unity.
At the beginning of the transaction, we are operating other people's systems and other people's strategies. Therefore, once we encounter difficulties, we will have doubts about the system and cause the investment to fail. After that, we began self-examination on ourselves from failure, and gradually found our own trading methods and trading philosophy in the transaction.
Gradually turn "others’ methods" into our own. Only at this time, you have completely integrated the system with yourself, and began to establish your own trading faith and trading internal power. Only when you operate completely with trading system that is gained by your own practice and sensibility, can you be confident and achieve inevitable success constantly.
Constant repetitive operations and constant understanding can quickly turn other people's trading systems into your own trading systems. When you start trading, because of the differences between you and others, there are often some stagnation and dullness in operating other people's systems. As the number of transactions increases, you will gradually understand the principles and trading philosophy of the trading system, and gradually integrate into your own thinking, forming new ideas and faith on your own mind. A perfect transaction is definitely your trade with system that you understand and agree with.
In the whole transaction, if you start the operation without understanding the actual meaning of each step of a trading system and how the whole system is profitable, if you understand the whole system only from the current transactions’ profits and losses, not based on the system's profitability principle and market philosophy, such transaction will inevitably lead to losses and failures.
This is why I disapprove of blindly operating a system that is hearsay. As stated in The Ghost of Wall Street: There are still people who want to lead a successful path of stable profits by learning the trading methods and trading strategies introduced in a book. This is a big joke, "Turtle Trading system” has been published for nearly 20 years, but how many people in the actual transaction can be profitable with this excellent system? Skills can be learned from books, but the internal power related to skill needs to be taught.
All wealth comes from a clear and correct understanding of a thing. Correctly strengthening and cultivating your own trading in the investment market is the only way to successful trading. The rule of success is to have deep trading internal power and strict trading discipline.
Only if you firmly believe in the system, can you succeed. This is an irrefutable truth. In final, I need to tell you something to end this article: if you can't strictly follow the discipline, you may make 10,000 kinds of mistakes; but if you can strictly abide by discipline, you won’t make any mistake.