The Realm of Masters—Belief
Ordinary traders, through continuous learning, understanding, practice, and discipline, may already count themselves lucky to reach the level of advanced proficiency. However, to attain the status of a master, one must go beyond learning; it requires a philosophical elevation. This kind of genius is often not the result of effort but an innate ability, achieved by very few individuals worldwide.
In 1992, when George Soros shorted the British pound, his assistant, Stanley Druckenmiller, suggested, "I believe the opportunity has come; we should bet big, $5.5 billion." After listening to Druckenmiller's explanation, Soros replied, "Are you kidding? This is a once-in-20-years opportunity; we should bet 200% of our worth." In the end, they used $15 billion to bring down the once-mighty Bank of England completely.
Even if you have reached a high level of discipline and steady profitability, you would likely hesitate to make such an all-in move. Continuous good discipline habits tell you not to make mistakes, as they can lead to bankruptcy. This kind of all-in operation violates all trading principles. Soros' Quantum Fund also traded steadily for decades, accumulating wealth slowly according to its trading system, but what sets a master apart is their ability to abandon all principles at critical moments to do what they believe is a sure thing, driven by a belief that becomes a powerful will, changing the present by altering the spatial-temporal structure.
You will eventually understand that the difference between those who do not profit and those who achieve steady profitability boils down to belief. Those who do not profit may never realize: if you decide to believe that you will succeed, then you have already succeeded. Failure is not an option, and the rest is merely a matter of "going through the process."
This is not alarmist talk.
Modern physicists have also confirmed this through quantum mechanics: in the famous double-slit experiment, scientists were astonished to find that human observation could change the state of electrons. If observed, the electrons would appear as particles; if not, they would appear as waves. In other words, human consciousness can alter the state of quanta.
As a result, the founding figure of the Copenhagen interpretation of quantum mechanics, Niels Bohr, debated this with the eminent Albert Einstein for over 30 years. Einstein did not believe it, asserting that the state's shape was determined before observation and could not be altered by consciousness. He famously said, "God does not play dice," and passed away in 1955.
The brilliant Irish physicist John Bell finally proposed a way to prove who was right in 1964. He came up with the famous "Bell's inequality," suggesting that an experimental device based on quantum entanglement theory could show whether Bohr or Einstein was correct. In 1972, American physicist John Clauser and, in 1982, French physicist Alain Aspect designed experiments according to the polarization principle of photon entanglement. Data from these experiments proved Bohr right—quantum collapse states are indeed altered by the observer's consciousness. God not only plays dice but does so constantly. Einstein was wrong.
In recent experiments, in 2017 at the Australian National University, it was discovered that the state of photons was altered even before a grating was placed, meaning future conscious behavior can change history.
Physicists around the world are continually astonished by quantum mechanics, often recalling Niels Bohr's famous quote: "If quantum mechanics hasn't profoundly shocked you, you haven't understood it yet."
This world is composed of various microscopic particles, with quanta as their basic units.
If the state of quanta can be altered by human consciousness, it follows that the world is constructed by human consciousness.
If this line of reasoning is followed, history does not exist, time does not exist, everything is a product of consciousness, and belief guides consciousness, known as faith.
Therefore, if someone wants to accomplish something, the key lies in the strength of their belief.
Look around, and you will see that the founders of successful companies are people with strong beliefs. Take Jack Ma, for example. Watching his speeches, you can tell that his confidence stems from self-belief, which has already led him to success.
At Alibaba's annual meeting in 2016, Jack Ma explained the difference between hype and confidence:
"Hype is when you don't believe it yourself but want others to believe.
Confidence is when you believe it yourself, regardless of whether others do."
The success of the Red Army during the Long March of 25,000 miles, despite dire circumstances, can be attributed to the same principle. Poor equipment and small numbers were not impediments; unwavering belief changed everything in the end.
Only by thoroughly understanding this principle, ingraining it into your blood without a trace of doubt, can you achieve success in anything you do.
Philosophy and science will eventually converge at the mountain peak, and understanding this earlier will be beneficial to your life.
The difference between a master and a successful trader is their incomparable belief.
1. Discovering the Deception of Logic (Logical Traps):
First, a story: From "Lüshi Chunqiu·Liwei," the story tells of Deng Xi, known as the first lawyer in history, who taught people how to litigate during the Spring and Autumn period. A rich man's father accidentally drowned, and a fisherman retrieved the body, asking for a high price to sell it to the rich man. Dissatisfied, the rich man sought Deng Xi's advice, who told him, "Don't rush, who else would he sell it to?" Following this advice, the rich man waited. A few days later, the anxious fisherman, with the rotting body in hand, sought Deng Xi's advice, who told him, "Don't rush, who else would he sell it to?" Ultimately, the body rotted by the roadside, creating a foul social impact.
Logically, both sets of arguments were correct, yet the results were negative. This illustrates that logic serves consciousness. Philosopher Osho in his "The Path of the White Cloud" likens logic to a prostitute, serving whoever pays. Though crude, it's insightful.
In reality, for anything we do, a thought (consciousness) precedes a pile of logic or justifications. Logic is merely a servant of consciousness.
The lesson here is that the logic of analysts, commentators, and experts in news stories may not represent the truth but the byproduct of their thoughts. These experts often provide convincing post-event explanations (like reasons behind the Euro/USD rise). However, such logic cannot predict trends and is often unreliable.
Dennis from "The Turtle Trading Rules" understood this. He had a principle: if a trader changed their mind based on a broker's or analyst's advice, they were immediately expelled from the trading team.
The danger with logic is that overreliance can lead to stubbornness in trading, causing traders to cling to flawed logic, leading to significant losses before doubting their logic.
This principle highlights:
a) Logic is unimportant. Soros's famous saying underscores this: "Enter the market first, analyze later."
b) Do not follow others' advice. Stick to your trading system. Even without logic, act on signals.
2. Confident Silence:
At the "novice" level, most people exhibit blind confidence, believing that learning technical indicators or various trading methods will lead to stable profits. This is a misconception.
The distinction between "experienced" and "expert" becomes relevant. Experienced traders, blindly confident and thinking they know it all, often discuss seemingly deep yet useless topics without understanding the meaning behind technical indicators. Experts, on the other hand, prefer silence when others talk about the market, as they know anything can happen. Their task is to prepare for all possibilities.
When listening to a debate on whether copper futures will rise or fall, an expert finds it as trivial as discussing the weather. They plan for all outcomes, carrying an umbrella regardless of the forecast.
Experts do not argue because, in their view, there are no certainties, only probabilities. An expert forced to predict the market will merely say, "The market will fluctuate."
Silence signifies confident preparedness, showing the expert's approach to problems. When all possible scenarios are anticipated, trading becomes routine and somewhat dull—it's all about following the plan and observing the market.
To become the market's ultimate winner, the core issue is having unwavering faith in your success.
Simplicity is the ultimate sophistication. Your grasp of this determines how far you can go in the market.
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