#交易思考 has been trading for a few years, gradually starting to think about the underlying logic of trading, sharing some thoughts that may not necessarily be correct, and welcome discussions together.

The only way to profit from trading is to buy low and sell high. In contract trading, it can also be reversed to sell high and buy low. Although this statement seems like correct nonsense, it is not easy to truly understand. Here are some of my interpretations of this statement.

1. What price is low? Is the price I am buying now really low? Will it go even lower?

2. The source of profit from buying low and selling high must come from another party that sells low and buys high.

3. Liquidation is a forced sell low and buy high. Once the leverage is too high, the market or a manipulative entity has the motivation to force you into liquidation, making you a source of profit for their buy low and sell high strategy.

4. "The good fighters of old first made themselves invulnerable to wait for the enemy to become vulnerable." In trading, being "invulnerable" means strictly adhering to the principle of buying low and selling high: buying can only occur at low points and selling can only occur at high points. Moreover, leverage cannot be used; once there is a risk of liquidation, it exposes your weaknesses to the enemy.

5. The true "invulnerable" state does exist, which is to buy spot assets at very low positions using funds that you won't need in the short term, and always remember that buying can only happen at low points and not selling, and do not be scared away by fluctuations. Of course, a prerequisite is that the asset you are buying is not air.