How to Achieve Unity of Knowledge and Action

The process of learning trading for investors is filled with hardships that ordinary people cannot imagine. If there are suitable personality traits and conditions, it will make the learning process easier.

An investor should not only have talent and be willing to pay, but also be enlightened and perceptive. The feeling of sudden enlightenment at a certain stage is wonderful, but it does not mean that there will be immediate results after the enlightenment. It still needs to be implemented in specific actions. Therefore, the attitude and philosophy of investors learning trading are very different from other industries.

Firstly, traders need to maintain an open mindset, absorbing and discarding certain things. No matter how good the concept and method are, if they are not suitable for oneself, then they are not good for oneself. Many people work very seriously, maintain certain behavioral patterns or habits, but they never know why. Either someone else thought, said, or did it that way, or they have already become accustomed to it, but they have not considered the good or bad significance for themselves.

Therefore, on the one hand, traders should not let deeply rooted bad habits dominate their inner selves, nor should they let preconceived personal habits or preferences hinder their improvement and breakthrough. On the other hand, they should respect any concepts and methods that have been tested in practice, neither underestimating them nor blindly following them; they should also maintain a respectful and humble learning attitude.

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Secondly, on the journey of life, detours are inevitable for every trader. When problems arise, do not be afraid, be good at remembering and summarizing experiences, and be able to improve abilities and levels based on an objective and honest summary of oneself. When encountering new difficulties, new experiences can be gained through summarization. Although it seems that the same thing is still being done on the surface, the inner growth is gradual.

The various situations encountered in trading, the pain and joy brought about, are difficult to express in words. Without personal experience, it will not be deeply engraved in the heart.

It is a good thing to start losing money in investment trading, as losing money to buy lessons is inevitable. Paying tuition is a process that every participant cannot omit, and losing one's own money is the best way to learn and understand risks. Moreover, in the process of trading growth, "bitterness first, sweetness later" is much better than "sweetness first, bitterness later."Life is filled with many challenging moments that we would rather avoid or not look back upon, and traders must be brave enough to confront these.

When facing setbacks, our natural inclination is to retreat into our inner selves for protection; at such times, appropriate independent thinking and introspection can make setbacks meaningful and even shine a light. Experiences, whether good or bad, are treasures as long as we reflect on them earnestly.

Thirdly, traders need to learn to comprehend certain things through independent thinking.

In the learning process, we will find that even seemingly simple and clear trading maxims are actually very difficult to implement in practice.

During the trading process, there are countless regrettable events and foolish mistakes. Reading anything cannot teach the experience that can only be gained from actual trading! It is important to control emotions and not lose confidence. The trading process is like groping in the dark and moving forward in hesitation; do not lose yourself.

Mistakes are neither terrifying nor a reason to stop improving; on the contrary, when we become aware of our mistakes and shortcomings and correct them, the danger is explicitly eliminated, bringing greater security.

When trading fails, the most common reaction of many people is to find excuses to cover up for themselves. For example, blaming losses not on oneself but on the manipulative market forces; or bad reports, bad news, etc., these attitudes and ways of dealing with problems have missed the opportunity for self-improvement, wasting money and energy.

Losing confidence and waiting passively for failure to knock us down is an investment approach that unnecessarily prolongs our learning and improvement cycle. Therefore, we must change our perspective and actively face every wound; as long as we do not fall, it is bound to be a kind of maturity, and complaining has no effect in investment. We do not have the ability to change the market, only to adapt to it.

Fourthly, traders must be able to perceive and review their own progress and success in stages, especially in terms of the improvement in concepts, strategies, and techniques.After enduring the repeated blows and baptism of the market, investors should gradually mature, and do more of what has been proven to be beneficial.

At this point, you will appreciate the warmth of the sun more, because you have experienced darkness; you will understand the essence of trading more, because you have experienced hesitation.

A heart that has tasted pain is more joyful and resilient, and also more courageous to survive and grow in the market. Nothing can replace the confidence that comes from experience!

Fifth, traders should interpret the market objectively and respect objective facts.

If you cannot view the market objectively, it is easy to lose order and discipline when the market is inconsistent with your judgment. Only after experiencing several complete bull and bear markets will you begin to have a correct understanding of the market.

Sixth, traders should always reflect on themselves and examine their mental state, and not have too strong a desire for money.

Stick to doing the right things seriously, and wealth will come naturally. Overemphasizing wealth often leads to making mistakes, and haste makes waste. Let your trading wisdom rise from various aspects such as viewpoints, knowledge, skills, strategies, experience, and mentality to the realm of life philosophy.

Happy people generally have beliefs in their hearts, and true happiness and satisfaction can only exist within the heart.

The above exchange of some trading ideas and concepts, the ultimate goal is to hope that everyone's cognition in all aspects will be improved, and cultivate good character and execution ability.

Only in this way can we achieve the "unity of knowledge and action" as said by Master Wang Yangming.Only in this way can our transactions and lives achieve true freedom.

Emotional Management

Always maintain a good mood, always keep a positive attitude. In the process of trading, anything can happen, and losing money at any time is not a happy thing. Trading must be operation-oriented and emotion-free. Do not let any emotions interfere with your trading.

Plan pessimistically, imagine optimistically, and respond positively. Pessimists may be correct, but only an optimistic attitude has the opportunity to achieve success. When others are complaining about the bad market, you must learn to think independently. In the process of trading, no matter what setbacks and difficulties you face, you must learn to find reasons within yourself to find a way to solve the problem. Whether to step on the difficulties or to bear the pressure on your shoulders, because in the end, there are always more solutions than difficulties. You will definitely find a way to solve the problem and ultimately find your own position and find a suitable investment method.

Fund Management

Some people, after failing to trade stocks in debt and experiencing great pain and pressure, have thought deeply and then turned the tide against the trend, surviving in desperate situations. This probability is extremely low. Most people who speculate in debt eventually become cannon fodder. For children in big cities like Beijing, Shanghai, Guangzhou, Shenzhen, and Hangzhou, with good family backgrounds and good growth experiences, these young people are often more likely to achieve success in the stock market, and a relaxed mentality is easier to do well in trading.

Timing

You must have contrarian thinking when trading. The people who can make money in the stock market are destined to be a small probability. More people make money in a bull market, and more people lose money in a bear market (few people make money). In the long run, making money is a small probability. Try to make more money in a bull market and operate less in a bear market, and lose less money. Do not try to let others recognize your ideas and thinking (if your thinking and ideas can be recognized by the public, you are likely to lose money in the stock market).Stock Selection

When making transactions, it's often easier to choose between two options. In such situations, opt for the one that is a popular leader. Trading always starts with logic and then follows with techniques. If the target you choose is a popular leader in the sector, you will find it easier to make the right choice. Under normal circumstances, the success rate of technical analysis will not exceed 40%. However, if you adopt the mindset of choosing a leader, the probability of success will greatly increase. Leaders have a driving effect on the sector. By selecting stocks from the perspective of leaders, you will find that choosing mid-tier stocks in the back row of the sector is the easiest way to lose money.

When faced with confusion and uncertainty, always try to calm yourself down. It's not just about being quiet, but about enhancing your wisdom in the process of being quiet, so as to find a way to solve the problem.

The best and most brilliant investment a person can make is in oneself.

Investing in oneself, making oneself more valuable, is more important than making money. Some say, "To achieve growth and change our destiny, it depends not on others, but on our investment in ourselves."

In life, the time, energy, learning, and growth we invest in ourselves are the most reliable investments. In life, investing in ourselves can make us independent, autonomous, confident, brave, and wealthy. When we invest in ourselves, even if fate is full of ups and downs, we can handle it calmly.

Investing in oneself may not yield immediate results, but with persistence, persistence, and more persistence, we will eventually see the return. In life, the accumulation of investing in ourselves will ultimately be our own, and no one can take away what we have learned from the investment in ourselves. In life, investing in ourselves can create the capital for our entire life. The most important investment in life is to invest in oneself, and each of us has the potential for such investment.

When a person is short of money, at a low point, or in adversity, the more they need to understand the importance of investing in themselves and accumulating strength, so that the future can be smooth. Perhaps, investing in oneself, stimulating one's potential, and exploring one's potential is a matter of perseverance, and this perseverance is more a test of our resilience and resistance to setbacks.

So, this sharing session comes to an end here. Thank you all for your support! Stock selection in the market is like gambling on jade, see you next time!