Ten years of trading ups and downs! EagleTrader trader: Rules are the underlying logic of trading

In the world of trading, the most regrettable thing is that you have been in the market for many years but still stay in the same place. EagleTrader
In trader interviews, many senior traders have spoken frankly about this dilemma, and Wenguang, who has ten years of foreign exchange experience, is no exception. The turning point in his growth has nothing to do with a stunning profit, but stems from an unforgettable failure.

1. Reasons for persisting for ten years

Wenguang’s initial motivation for entering trading was very simple – to make money and to like the trading itself.

But what really supports him to this day is not enthusiasm, but a gradually formed understanding: trading is not something driven by emotions, but a job that needs to be replicated in the long term.

After passing the ET proprietary trading exam, he has clearly chosen to manage profit-sharing accounts full-time. In his view, when the scale of transactions increases and responsibilities increase, randomness and fluke will quickly be magnified into risks.

2. After the liquidation, he began to re-understand “control”

Wenguang did not shy away from his own experience of liquidation.

It was a very frustrating period, but it was that experience that made him realize for the first time:

If there is no set of rules to restrain himself, sooner or later the market will intervene in a more cruel way.

Since then, he no longer pursues “every transaction is right”, but has begun to focus on a lower-level issue –

Is this transaction within controllable risks?

3. No place for emotions in trading decisions

In terms of the composition of trading decisions, SMG’s choice is very extreme, but also very clear:

90% comes from technical analysis

10% From fundamentals

Almost does not let intuition participate in placing orders

It is not that he does not believe in experience, but that he knows that intuition is often emotion with a better name.

For him, technical analysis is not a prediction tool, but a restraint tool – restraining impulse, restraining hesitation, and restraining subsequent explanations.

4. For a truly stable system, the first thing to solve is the mentality problem

When asked about the key to long-term stable profitability,China Media did not mention any specific strategy. He instead highlighted a factor that many traders underestimate: mentality.

In his view, a stable mentality does not mean “not caring about profit and loss”, but the ability to strictly implement the established system even when profits and losses fluctuate.

The first goal of the system is not to make money, but to control risks. Only when risks are limited can the system be qualified to talk about long-term performance.

5. Heavy positions are not scary, the scary thing is why you take heavy positions

Regarding heavy positions, Wenguang’s judgment standard is very straightforward: if heavy positions are part of the strategy design, accept all the results it brings; if heavy positions are due to emotion and greed, once you lose money, stop the loss immediately and stop trading.

The same logic also applies to the retracement process after profits. When the plan is still clear and the mentality is still stable, he will analyze it calmly; once he has doubts about the market or his own status, he will choose to stay and wait and see.

The position size is not the problem, the loss of self-control is.

6. How does he view volatility and retracement

In Wenguang’s eyes, volatility is not a source of risk, but a prerequisite for the existence of trading. The key is not to avoid fluctuations, but to use different positions to handle different levels of fluctuations.

Because of this risk allocation method, he can usually return to the previous high net worth in one to two weeks after encountering the maximum retracement. Recovery speed often reflects the maturity of a trading system better than profit speed.

7. Why he approves of ET’s examination rules

When talking about the gains from taking the ET proprietary trading examination this time, Wenguang’s evaluation is very pertinent: “The examination’s trading rules can effectively control risks.” For him, rules are not restrictions, but an external constraint that helps traders remain rational in an environment of amplified funds and intensified pressure. This is also one of the important reasons why he chose to enter the profit sharing stage.

For those who have just entered ET
As a new trader in the system, Wen Guang only left one sentence: “Don’t be too hasty in trading.” The market never lacks profit opportunities. What really determines how far a trader can go is whether he can calmly polish himself within the framework of the rules and eventually grow into a qualified long-term trader.