I have been liquidated 3 times. At the most, I owed 200,000 in foreign debt, and those days were really hard to endure.
More than once, I thought about smashing my computer and just getting a job in a factory. But that stubborn spirit of not giving up kept me from giving in.
In the last instance, I had only 50,000 left in principal, and that’s when I finally woke up completely.
All the fancy stuff I learned before was thrown out; I didn't use any indicators or formulas, just relied on the simplest method to slowly roll my position. Who would have thought that by sticking it out like this, I would actually make it to 8 figures.
I finally figured it out: trading is not that complicated; the core is “small losses, big profits.” When it’s time to cut losses, you have to be decisive and not hesitate; you have to hold on to profitable trades and let the profits run a bit longer.
I no longer pursue a high win rate.
Making small profits on eight out of ten trades is useless; one deep drawdown nullifies everything. It’s better to wait for an opportunity to make big money. Now, I only look at the simplest indicators to determine bullish or bearish; I only dare to go long in a clearly bullish market and avoid counter-trend trades—those are just looking for losses.
When opening positions, I also choose locations: either in the bottom area or when the trend is just starting. The stop-loss at these positions doesn’t need to be set too large; even if I misjudge, a small loss is bearable and won't hurt too much.
I am very strict about position sizing; the base position is always light, and risk must come first.
I’ve calculated that the position must withstand the maximum historical consecutive losses, and I must leave some buffer; I can never force myself into a dead end. Stop-loss is even more of a bottom line; once the key price level is broken, no matter how reluctant I am, I have to exit, even if it rebounds later, I won’t regret it, and I will definitely not hold onto losing positions or add margin to losses.
I only slowly add to positions when I have floating profits; either when there is a pullback without falling or when breaking through previous highs, I add a little while also moving the stop-loss up—first protecting the profits of the base position, and the added part is the capital for seeking returns.
I never rush to take profits; I wait for obvious top signals to act. It doesn’t matter if there’s a bit of floating profit retracement; who can sell at the highest point? Occasionally encountering a V-shaped reversal, I accept it; it’s money that doesn’t belong to me, and it’s useless to force it.
My method is quite tedious, with no shortcuts, but it’s this persistence of not blindly messing around that allowed me to grow from 50,000 to 8 figures.
Those who can truly survive in the market rely entirely on solid discipline. No matter how simple the method, as long as I stick to my bottom line without blindly changing the rules, I can make steady profits.