1. The anti-instinct dilemma of trading
Traders who survive in the financial markets have all faced a fundamental contradiction: we are born and educated to seek certainty, while the market is a world of probabilities; we are told that effort will be rewarded, yet the success of trading is not proportional to the level of effort. This is akin to what Buddhism says—enlightenment requires a moment of awakening, not mere accumulation. In trading, whether you chase or not, profits are there; they do not arrive early because of your desire, nor are they absent because of your fear.
The true art of trading lies in whether you can accept losses when the market is lifeless; when the market surges, can you stick to your model? Even if your win rate is only 50%, as long as you can let profits run at the right time and cut losses promptly at the wrong time, in the long run, probability will be on your side.
2. Loss amount: The silent judge of rank
In this game woven from countless uncertainties, the only certainty is your stop-loss. You cannot control the market direction, influence the macro economy, or foresee sudden events, but you can always decide: for this trade, how much am I willing to lose at most.
The amount of a single loss is like a precise measuring stick, measuring the trader's true rank:
Beginner player: Every loss is a severe blow, emotions fluctuate violently, and the account often hovers on the edge of a cliff.
Intermediate player: Loss amounts are fixed, but often violate rules in pursuit of 'making back' losses, with discipline being inconsistent.
Mature trader: Every loss feels like a budgeted cost, accepted calmly, quickly moving on, and the funding curve remains as steady as mountains.
Losses are the 'tickets' you pay to explore the market. True skill is never reflected in the profits at peak moments, but in the risk management ability during low periods. Because only by controlling losses can you preserve your strength in the winter, waiting for spring to arrive, when you still have enough seeds to grow a forest.
3. Profit: A 'fate' with the market
When stop-loss becomes your instinct, a wonderful transformation occurs: you can enter the market more calmly, because the worst-case scenario has already been framed; you can wait more patiently because you know opportunities will come. Trading thus becomes an 'art of fate': your ability determines how long you can survive, while the market determines how big you can grow.
The tragedy for many is attributing all the windfall during a certain period to their own 'strength,' while ignoring the favor of luck. This cognitive dissonance is the most fatal—it leads people to squander chips like gamblers even after luck has left, ultimately returning everything to the market. 'Money earned by luck will ultimately be lost by strength,' this bloody adage reveals the inevitable outcome of mismatched skill and wealth.
The market is always full of myths; stories of those who reach the top by chance constantly attract batch after batch of followers. However, the sober participants will ultimately understand: making money requires fate, but losing money hones rank.
4. Establish certainty in uncertainty
The highest realm of trading is to live yourself as a precise probability system:
Accept the inevitability of losses: just like breathing, you must expel the old to take in the new.
Etch stop-loss into your soul: this is the 'certainty' anchor you create for yourself in a chaotic market.
Differentiate between luck and strength: be grateful for the gifts of the market, respect the punishments of the market, and remain alert at all times.
The essence of trading is navigating a small boat named 'rules' in a sea of uncertainty. You cannot command the wind, but you can adjust the sails; you cannot calm the waves, but you can strengthen the hull. The amount of loss is the draft line you designed for this boat—it determines how far you can sail and how much storm you can withstand.
Every disciplined loss is a refinement of rank. True big movements only knock on the doors of those who are already prepared and still at the table.
In the end, the market does not reward the smartest people, but the most disciplined; it will not always favor the luckiest, but will ultimately eliminate those most unaware. When you no longer focus intently on the elusive profits, but rather on whether each loss is within plan, you have truly stepped into the threshold of trading—where controlling losses is not a limitation, but a power that grants you ultimate trading freedom.