● First, seize the opportunity to make a fortune.
Second, constantly accumulate small profits and realize big profits.
Two different styles of yield curves
There are two ways to make a lot of money, as shown in the figure. The first method has a steep yield curve. Once you meet the right market, the yield will increase exponentially. However, high returns are usually accompanied by high risks. If you misjudge the market, it will often bring a devastating blow to traders. The yield curve of the second method is very stable. It seems that the income growth rate is not very fast, but under the effect of compound interest, with the increase of trading time, the overall income will rise steadily.
In the futures market, many rich traders often seize the opportunity, and then gamble heavily, and the bet is right, thus achieving the myth of getting rich overnight. Then, under the packaging propaganda of futures companies and related media, this trading style became the mainstream of the market for a while, and traders who did not know the truth often blindly imitated it, resulting in heavy losses. The success of the first trading method cannot be copied!
In fact, there are countless traders in the futures market who explode or even break positions because of heavy positions, but futures companies or the media rarely report them. Even if these news are reported, it is often difficult to attract the attention of traders, because most traders have survivor bias. Because it is easier to see success than failure in daily life, you can't help overestimating the probability of success. For such traders, the market will never refuse to charge their tuition fees.
The futures market never lacks the myth of wealth. Why are there more stars in the market and fewer birthday girls? This is because most futures stars have always accumulated wealth quickly by betting on the first or second power. They often only see the results of harvesting huge wealth, but ignore the huge risks hidden behind this trading method. No wonder john maynard keynes thinks: "People are instinctively eager for immediate results, and they are especially keen on making money quickly."
Therefore, it is not futures stars who get rich overnight, nor futures bosses who have been on the battlefield for many years, but people who make a lot of money in the futures market and turn around and leave. They are fully aware that although they have made a lot of money, they also have some luck. However, luck does not always take care of itself. Now that I have made a lot of money, I won't gamble on those unreliable luck.
There is often a phenomenon in the futures market, that is, wrong ideas often spread more widely than correct ones. The reason is mainly because most traders tend to judge heroes by their results. As long as a trader makes a lot of money in the futures market, his ideas are often regarded as classics.
Trading itself is a question of probability. When decisions involve probability, good decisions may lead to bad results, and bad decisions may also lead to good results. For example, if you play 2 1 point, the cards in your hand add up to 18 point, and you ask for another card, so the dealer throws a 3 and you have 2 1 point in your hand. This is a bad decision, but it has produced good results. But if you play the same way a hundred times, you will usually lose. This is because 2 1 point is a probability game, which means that you will do your best according to certain rules, and this rule reflects the real probability of getting a good card: when you already have a card with a score of 17 or more, don't deal.
Therefore, in a probabilistic environment, if you want to achieve better results, you should pay attention to the decision-making process, not the results. Traders should judge their own decisions according to their own decision-making process rather than the results! But unfortunately, most traders will take the words of futures stars or successful experiences as the standard, which is extremely unwise and irrational.
If you want to be an excellent professional player, you should form a good habit: trust only your eyes, not your ears! Trust only your own brain, don't trust other people's advice! You must think about the reasons for the success of other traders, whether his trading methods are wrong and suitable for you, rather than blindly imitating and learning. Therefore, traders should give up the illusion of getting rich overnight, because you have only heard of the successful cases of getting rich from heavy positions, but you don't know that the success rate of getting rich from heavy positions is actually very low.