Summary:
Genius is an additional skill in trading, and success requires multiple qualities such as intelligence, persistence, and emotional control.
A famous trader, Ed Seykota, once said a famous quote: Everyone gets what they want from the market. The market will ultimately give everyone the most desired thing in their hearts.
Some people enjoy the excitement of following the trend, some enjoy the vanity of buying bull stocks, and some enjoy the process of self-torment. Their commonality is that they often say they want to make money, but they enjoy a different set of things in their hearts.
A fair market will ultimately give them excitement, vanity, and self-torment, with no profit. In fact, there are very few people who truly care about survival and profitability. They take smart risks in the market and bear risks outside the market—muddant, lonely, and even ridiculed.
So before answering this question, it is recommended to first consider: What do you want from the market?
People who truly succeed in the market, if they have talent, are those who recognize the essence of profitability and have no distractions. Their talent is to treat trading as a continuous business without paying attention to the gains and losses of a particular transaction or pouring emotions into each transaction.
For example, if my strategy is trend trading, then I need to constantly explore the building points and set closer stop loss points to ensure that once I make a wrong judgment about the trend, I can stop loss at the lowest cost, and once I am right, I can catch most of the trends.
I am not 100% certain of making money before every transaction, but I can ensure that I survive until I seize the real opportunity by evaluating trading opportunities and controlling the stop-loss line. I may have stopped losing nine times during the process of building a position, but the last time I did not hit the stop loss and implemented a reasonable increase in position, ultimately seizing the trend and gaining rich profits.
So during this process, one perspective is that I have misread nine times, feeling frustrated and disheartened. Another perspective is to only consider these nine stop losses as the cost of the overall trading strategy, without too much entanglement in the gains and losses of one city and one place.
Genius is an absolute objective existence, but the term 'talent' is not sufficient to refer to external humanity. If you want to test whether you have talent, you can only rely on the process. Others want to test whether you have talent; only the results can be seen. And both of these paths can only be achieved through hard work.
Regardless of profit or loss, every trader has their own bottleneck. Breaking through one bottleneck takes them to the next level, and then new bottlenecks await you. Each breakthrough requires double diligence and a bit of talent.
A wise and intelligent mind and perfect personality, combined with hard work, luck, and perseverance, eliminate most people. Having the talent to make money from the beginning may not necessarily lead to ultimate success. Do you think Buffett or Jesse Livermore are more talented? The god of the market only favors the victorious general.
So persistence is the most important thing. If you have low intelligence, you will spend a few more years. As long as you survive, you will have the opportunity to make money, but earning big money requires more.
Enough intelligence (intelligence), enough rigidity (execution), enough pessimism (fund management), enough optimism (emotional control), enough persistence (long-term consistency), and enough flexibility (choice)
Genius lies more in the technical aspect. It is more like an additional skill, often accompanied by self-worship and even leading to self-madness, which is also the beginning of destruction.
If you choose perfection, regret is the norm; if you choose to advance recklessly, failure is the norm. Many times, what needs to be done is not to change but to take advantage of the situation, learn to make choices, and face gains and losses correctly.
The most important thing is to maintain reverence for this market. The only thing we can control is ourselves. We are powerless to handle changes in the market, and no one can accurately predict the future. We must be cautious, step by step. Survival in this market is more important than being a hero.
Disclaimer: This material is for general information purposes only and is not intended as (and should not be considered to be) financial, investment or other advice on which reliance should be placed. No opinion given in the material constitutes a recommendation by EBC or the author that any particular investment, security, transaction or investment strategy is suitable for any specific person.
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