Trader's Trilogy

The word "trading" has a very broad meaning, and there's no way to fully describe it with just a few words or simple sentences. All the trivial things we are doing now are part of trading. And all these trivial things are also components of trading. In trading, everyone has a different understanding of what trading is. Some think trading is just simple buying and selling; others believe it's about realizing value; some see it as a byproduct of making friends with time, and so on.

Are these statements correct? Both yes and no. Because there is no right or wrong in trading. Asking whether it's right or wrong is itself a flawed question.

Based on my current understanding of trading, I divide it into three parts:
The first part is the "Skill" aspect
The second part is the "Dao" (Way) aspect
The third part is the "Life" aspect

Next, I will briefly discuss these three parts that make up trading.
Let's start with the first part: Skill. I define skill as technique.
Most of what can be manifested in trading are aspects of skill. What do I mean by "manifested"? For example, the lines I drew in previous videos are a form of skill manifestation.
There are many types of skill manifestation, such as: trading methods, analysis theories of market charts, technical analysis of entry and exit points, etc. These are all manifestations of skill.
For example, buying at the close is a manifestation of skill; adding positions when floating profits increase is also a manifestation of skill. These are trading techniques. A specific technique is just a small trick within the broader skill of trading.
Analysis of market charts also has many forms, such as: Chan theory analysis, wave theory analysis, price action trading analysis, etc. They are all just different types of analytical skills. Each has its own logic and basis.
The techniques for analyzing entry and exit points are also abundant in the market, such as Fibonacci retracement levels, moving average support and resistance, Bollinger Bands' three bands, etc. These are the most basic skills for determining entry and exit points in trading, and they are manifestations of skill.
The skill category contains so much that almost all normal discussions about trading are about skill—these are all manifestations of skill. Just different ways of expression.

Once we understand what skill is, we can think about what skill can do and what it cannot do.
First, let's talk about what skill can do: what problems it can solve.
In the process of trading, skill can solve practical issues such as trading techniques, buy and sell points, profit per trade, and entry/exit decisions. Think about it—does that sound right? Basically, everything you are learning now is aimed at solving these problems, and these are mostly about skill.
However, skill can only solve practical problems. There are many issues it cannot address, such as: inner greed and fear, the depth and height of thoughts, understanding right and wrong about certain matters, and how to view and treat life. These are problems that skill cannot solve, which is also its shortcoming.

I often hear or see many people say: "What’s the use of drawing lines? Won’t I get cut if I draw lines?" or similar remarks.
Here, I have a question for everyone to think about.
Suppose a businessman goes to the market to buy and sell. He clearly knows the maximum loss he can incur on a trade today. Think about it—would he feel fear because of potential losses?
Or, if he knows the maximum profit he can make today, would he become greedy trying to earn more? Let's think about this together.

Returning to the original topic: trading. When we talk about trading, we must state it objectively, not subjectively. That’s why I keep emphasizing in videos and texts: look at signals, don’t guess the market.
Because signals objectively exist—they are presented there regardless of your gender, education, or background. They are objective and will not be influenced by your thoughts or decisions.
Let me give you an example for us to think about together.
Suppose: tonight, the weather forecast says the next few days will be sunny, perfect for outings and picnics. We prepare for outdoor activities accordingly. But then? The next day, there’s a heavy rainstorm, and the third day as well.
Think about it—would we still go out? In this story, what exists objectively? What will not be influenced by our thoughts or decisions? What remains unchanged regardless of our gender, education, or background?
That’s what I want to share and discuss about the "Skill" part, along with some stories.

Next, I want to talk about the second part: Dao.
In my opinion, Dao is not as mysterious as people say, nor as difficult. But understanding Dao is not as simple or casual as it might seem.
Let me give an example to help us feel what Dao is.
For example: When we were young, our parents told us not to play with fire because it could burn our hands. They told us this truth, and we knew it. But do we really know how painful it is when fire burns our hand? Do we understand the harm it can cause? Probably not. When do we understand? Only after we get burned. When the burning sensation is transmitted from our hand to us, we realize how dangerous fire is—how it can burn our hands, harm our lives, or leave permanent scars. Only then do we understand that fire can be so dangerous, and the burning sensation can leave a lifelong memory.
After being burned, we understand the truth our parents told us. From not understanding why they said it, to understanding it—this process is the process of悟道 (enlightenment of Dao). The final understanding we gain is Dao.
The difference is, some people悟道 (enlighten) through others’ experiences, while others悟道 through their own experiences.

Let me give another example. Earlier this year or late last year—I forget the exact time—a friend told me about a person called "Brother Er Wàn" (Two Ten Thousand). He said this person’s recent remarks were very popular, and I should listen. I listened, and after hearing, I told my friend: "Anyone who truly understands what Brother Er Wàn is saying doesn’t need to listen. Those who treat his words as treasure and listen repeatedly probably don’t understand."
Why do I say that? Think about the example I just gave. When others tell us some truth, can we really feel the meaning they express? Usually not. Even the truths our own parents told us from childhood—we need to practice them ourselves to truly understand why they said what they did. Once we understand the truth through practice, do we still need to listen to others? Probably not. Because we already understand. Think about it carefully.

That’s also why I told my friend: "People who listen may not understand; those who understand may not need to listen."

Dao is something inward. It’s what we gain through thinking in our minds. I call all these thoughts and insights "Dao."
Dao is not a threshold; it’s a result. Not that once you悟道 (enlighten) to something, you cross a threshold. That’s not how I see it. I believe it’s the result of inward cultivation. The more you悟道 (enlighten) to, the more your成果 (results) will be. The more you enrich yourself, the more you have in your mind.
As an old Chinese saying goes: "A mind full of books exudes a refined aura."
So, Dao is like the books in our belly. The more we think, feel, and悟 (enlighten), the more "books" we have inside. Our temperament improves. If you understand Dao this way, I think it will be much better.
Dao is a fruit, not a threshold.

Finally, let’s talk about the third part: Life.
Why do I include Life as one of the three major parts of trading? Because its importance is no less than skill and Dao. In fact, in some ways, it’s even more important than Dao and skill. Now, I will share in detail about this part.
Let’s think about a question together: what is the purpose of our trading? Think about it.
After finding the answer, ask yourself: why? For example: our purpose in trading is to make money. Money is our goal. Then ask yourself: what is the purpose of making money?
Asking yourself this one or two more times can help us understand more objectively what our true purpose in trading is. That’s the question I want us to reflect on together.
In my opinion, the biggest challenge in the "Life" part is how to reconcile with life—how to make friends with time.
We live in an era of explosive knowledge and rapid development. People no longer understand the value of a letter from home, nor do they grasp the poetic meaning of "sharing the moon across a thousand miles." And they certainly can’t appreciate the significance of the words "Master and disciple."
The greatest pain of this era is the delay of satisfaction—the silence after celebration. Many people lack patience to wait for a flower to bloom, and many lack perseverance to complete small tasks.
But trading is about reconciling with life, about making friends with time.
Let me share a story from my life:
I have a friend with three children. He wants to do trading with me to improve life a bit. But he only has 3W (30,000).
After learning about his situation, I told him: "Brother, I know you’re anxious, but don’t rush. You already have 3W, which is quite good. If you can坚持 (persist) for four years, it will be very rewarding." I explained: "By the end of the first year, 3W will become 6W; by the end of the second year, 6W will become 12W; by the end of the third year, 12W will become 24W; and by the end of the fourth year, 24W will become 48W. Just four years of坚持 (persistence), and your life will change for the better." As for trading techniques, even though he’s a bit older, I can teach him step by step. Whenever he encounters something he doesn’t understand, he can ask me anytime, and I promise to be open and honest.
But he couldn’t listen, he couldn’t wait. The most he asked me was: "What to buy today? At what point to sell? Which stock looks good tomorrow? My kids need money again, I have to pay back loans, life is full of disappointments."
In my view, he can’t wait even a day. Why? Because he can’t reconcile with life, can’t make friends with time. That’s something I can’t change.
Let’s think about a question: suppose he can face his current life situation, reduce material desires, clarify some trivial matters, and plan for the future. Can he then make friends with time? Can he reconcile with life?
This is the influence of life on trading. It will change how we apply skill and Dao in trading. Honestly, the "Life" part is the foundation of building skill and Dao.
There’s an old saying: "When there is余力 (spare capacity), then study literature." The value of this saying in trading increases over time.
Once, I had a late-night chat with a friend. I said: "We should start now to protect our health, because the money we earn each year is the sum of what we’ve earned from birth until now."
The reason I say this is because skill and Dao support me in making this assumption. They support my life to some extent, and when I have a better life, I can calm down and improve my skill and Dao.
Unintentionally, I’ve built a positive feedback loop in my trading. Repeating this, I believe everyone can go further and fly higher on the path of trading.

In trading, skill, Dao, and life form an invisible triangle. The more stable this triangle, the more精彩 (brilliant) our life on this stage will be. It lifts us up, but we must also constantly balance the relationship among these three.