EagleTrader Interview | The freedom of trading is not laissez-faire, but the sense of control after self-restraint

In the eyes of many people, trading is about “fast” – fast pace, fast decision-making, and fast profits. But for Li Tao, trading is more like a practice about “slowness”: slow down to review, slow down to wait, slow down to execute. More than three years of foreign exchange trading experience made him gradually understand that the truth of the market is not about speed, but about rules.

He smiled and said that his relationship with the market began in college classes. Having studied finance at that time, his interest in trading almost fell in love at first sight – “I like the diversity of trading and the freedom it brings. You can use logic and probability to fight uncertainty.”

From that moment on, Li Tao understood that the freedom of trading is not laissez-faire, but a sense of control after self-restraint.

Trading relies on probability

Now Li Tao has decided to devote himself to trading full-time. In his trading system, technical analysis accounts for 60%, intuition and experience account for 40%, and fundamental analysis accounts for only 10%. He believes that trading does not rely on “prediction”, but on probability – on finding relatively certain entry points and stop loss lines amid uncertainty.

“The most important thing for medium and long-term profits is the entry point and stop loss, and the second is to learn to hold positions.” This sentence may sound plain, but it is the core belief that Li Tao has honed for three years.

Three months ago, he significantly optimized his strategy: “I refined the strategy into multi-period resonance analysis. The comparison of volume and price in different time periods can help me choose to enter the market more accurately.” He knows that the market will not reward those who pursue perfection, but will reward those who can execute in the long term.

Luck cannot be eliminated, but it can be circumvented

In Li Tao’s trading diary, there is a rule that will never change – “Set a stop loss line as soon as possible after placing an order, and strictly implement it.”

This is a kind of awe that comes from the experience of liquidation. He said frankly that when he first entered the market, his position was liquidated due to the reverse trend of the market data. “At that time, my whole mind went blank.” But that painful experience also made him truly realize that it was not the market that destroyed the account, but his emotions.

Since then, he has never traded in the data market again. Once an unplanned loss occurs, he will immediately stop the loss, suspend operations, review the reasons, wait until a signal that conforms to his strategy appears, and then slowly recover the loss after taking a small position. “It is difficult to stop loss manually, but if you can do it, the impact of luck will be much smaller.”

Like fluctuations, but not be influenced by fluctuations

LiTao is a short-term, small-band trader who likes volatile markets. “Large fluctuations can create price difference space and bring trading opportunities. There are more opportunities in small cycles.”

The fluctuations in his eyes are not risks, but the manifestation of structural opportunities – “Market fluctuations reflect the relationship between supply and demand. The greater the volatility, the greater the risks and profits.”

He is also cautious in risk control. “If the risk I can bear is 100 points, I will only take up 10 points for each transaction.”

He is very clear about the relationship between risk and growth, and also knows the cost of each retracement: “After each maximum retracement, it takes an average of 2-3 times more time to return to the previous highest point of net worth.” This is not only a calm understanding of losses, but also an extension of his trading discipline.

Is there really a plan?

Can it really be executed?

Can it really remain stable within the rules?

“This provides a complete and formal trading environment, and it also allows us to learn from more outstanding traders.” Li Tao believes that EagleTrader is not just a platform for funds and profit sharing, but more like a system that allows traders to “calibrate the direction.”

Li Tao is not a trader who pursues “predicting the market”, but seeks certainty through discipline. He believes that the freedom of trading is not random, but comes from a sense of control after self-discipline. Three years of actual combat have taught him not to be blind, not to get ahead, not to bet on the direction – only to do what he understands about the market, and only to implement the rules defined by the system.

On the EagleTrader stage, Li Tao used actions to interpret the classic trading philosophy: “Control what you can control, accept what you can’t control.” Perhaps, this is the common practice of all EagleTrader traders!