Introduction Secret to Become a Great Trader!

● Greatness does not derive from mere luck!

● The reason that an ordinary man fails is that he hopes to achieve different outcome using the same old way!

Financial trading is the freest occupation in the world , for every trader can develop a set of profit -making methods tailored exclusively for himself. There are vanous specific methods of soliciting money from market; while this is the very reason that why financial market is so fascinating. However , just like the ever-changing world is indeed dictated by a few rules , the only "Holy Grail" is worshipped by numerous great traders as well. ln the following , we will examine the greatest representatives among them one by one.

As a representative of Techincal Trading, Richard Dannis is known worldwide. He has accumulated a profit as staggering as 1 billion dollar while the cost was merely 2000 bucks! He has been a trader for more than a decade. Tbe inspmng thing about him is that he conducted commodity futures trading with a technical analysis method which in essence is price acting as the core of such analysis. Nevertheless , the greatness of Richard Dannis is far beyond this which is like the greatness of Alexander was more than the great empire across both Europe and Asia built by him. Thanks to his "Turtle Plan" , 6 out of the world top 10 CTA fund managers are his adherents. And the Turtle Trading Method is frantically well-known ever since for a couple of decades. Today in mainland China, a storm of "Turtle Trading Method" is sweeping across the entire country. The core of Turtle Trading Method lies in two factors: first , the philosophy of trendy trading implied in "Weeks' Rules"; second, the pbilosophy of mechanical trading and systematic trading implied in fund management and risk controL The so-called "Weeks' Rules" can be simplified as simples rules that going long at high and short at low within N weeks since price breakthrough. While Trading as breaking illustrates trend following trading. If we go deeper, we will find that "Weeks' Rules" is a trading system in nature. It tells us the principle of systematic trading and the principle of mechanical trading. Well , let' s just put these two principles aside and look at some amazing facts in the first place.

The greatest representatives of fundamental investment and speculation are undoubtedly Warren Buffett and George 50ros. The former claimed the title of richest man in the world in 2007 again. You can imagine how powelful he is; the latter is accredited as "the only civilian who has independent diplomatic policies in the world" . The two masters win these glamorous tiÙes because of their possession of enormous wealth. In essence, it is due to unparalleled financial trading that makes them admired by the whole world. fresh with his feet in the field of investrnent, Buffett was regarded by the guru of Inforrnation Theory as the richest man in the future world for this guru considered that the practice by Buffett of Probability Theory is unparallel by anyone; Buffett' wife even made his investment secrets public. It is not hard to see that the trading system of Buffett is really powerful that even those techTÚcal speculators famous for quantity theoηhave to bow before him. Buffet said himself that 85% of his ideas are inherited from Benjamin Graham who is a representative of investing in a accountant' s actuarial method which requires probability and systematic thinking. The interesting thing is that Buffett is a good p]ayer of bridge and his partner is Bill Gates! Playing bridge requires mentality of strict probability which is systematic thinking，no wonder that Buffett conquered the guru of lnformation Theory on bridge table and then conquered the whole financial world. From these facts we can see that even in his early plays of bridge, Buffett had shown his ambition to become king of the financial world.

Soros has written a large bucket of books among which the most famous is The Alchemy of Finance. In this book he tried to b山ld a system of speculation. His teachers are Karl Popper and Hayek. The two thought that human perception has some inherent flaws , so their students soros consequenÙY deems 出at emotion and limited rationality lead to "Boom and Burst Cycles" of market; while if a rnan wants to become a great trader, he must overcome influences of such flaws and furthermore take advantage of them. 50ros tried to build a systematic framework for trading based on economic ideas of Hayek and philosophic thoughts of Karl Popper. Reflexivity is the very core of this system.

I may still tell you so many financial gurus taking systematic trading and mechanical  trading as their principles, for instance, Bernstein (master of short line trading) , Bill Williams (master of Chaos Trading) , etc. Too many. Let' s just forget about them. Well , from the abstract perspective, why shall we take the road to systematic trading and mechanical trading? Please let me show you some ve巧obvious reasons.

First. A man' s perception and action are easily affected by market and participating groups. When you are staying in market or a group for more than 5 minutes , you will be hypnotized by ambient setting and ever since that your decisions will be affected by irrational elements.

Second. Any trading is composed of situation analysis and account management. It involves not only entrance but exit which may be either exit at profit or exit at a loss , and there are problems such as selling out and buying in. all these require multiple decisionmakings , particularly in short line trading. Complicated and frequent decision -making is beyond the average brain of emotional and busy people. I bet eveηshort line player of forex or gold knows it well that decision -making in fatigue and anxiety usually leads to failure. Well , systematic trading and machanical trading are able to manage these procedures repeatedly in a process and thus can save lots of time and energy.

Third. People make decisions in a quite casual manner. A more important factor is that people use different strategies in varying degrees in trading. This makes it difficult to evaluate the performance of such trading because in that way you will not know how much a specific factor plays in the N tradings. And the player can not improve his skills consequently. This is the very reason that many domestic retail investors make no progress at all for many years. Evaluation of trading techniques and strategies shall be based on plenty enough trading samples while it' s simply impossible for tradings casually made for every trading adopts a variant strategy and samples accordingly derive from a different totality which can not be used for calculating and analysis. On the contrary， systematic trading and mechanical trading adopt the same strategy every time so they have applicable samples for performance evaluation and it' s easier to pinpoint problems , for instance, a player may in first , second ... twenty -first tradings used strategies A, B, C, D. He himself could not make effective evaluation of each strategy for he used them in varying degrees in these tradings , but systematic trading and mechanical trading can shoot this trouble completely. Therefore , if you want to evaluate your trading strategies rationally and make quicker progress , you have to take systematic trading and mechanical trading as principles.

Fourth. Currently the financial market is developing at a staggering speed. Stock, forex , gold, commodity, index futures , interest rate futures , options , etc , everything new is coming out. So many opportunities! Well, if we just rely on human mind in grasping these opportunities ， it is ahsolutely not enough. The emergence of large -scale funds makes the risk of personal judgment of fund managers pretty high. Take it easy, anyway, because we now have mechanical trading and systematic trading which has become an irrevocahle trend of this age. Furthermore , derivatives such as options can not live without systematic trading and mechanical trading for it involves usage of large amount of mathematic and physical models which are simply beyond the reach of human strength.

Chinese people believe that human mind is superior to computer. Well , this is not wrong, but it is not completely right either. The greatness of human mind is its creativity; while its weakness is that it' s vulnerable to emotion and past experiences. In modem financial trading , the main function of a trader is not looking at the board and executing deals-these are the responsibilities of the trading system一instead ， his main function is to design the trading system and examine the performance of it and make according improvements. This process unifies human creativity and mechanical uniformity. The success of a trader is derived from tow factors: smart idea and discipline. When the trader is executing deals , discipline becomes a problem; when existing trading system makes newcomers give up thinking , creativity becomes dead. If， we let the trader and the trading system do their respective jobs well, what we need to do is soliciting profit from market only!

As the earliest Trading Ideas Provider who advocates mechanical trading and systematic trading in the mainland , we hope that our books will bring real progress to you. Of course, there is no free lunch. Long-term existence does not merely rely on luck. Please make some efforts! Superb skill , perfect mind , excellent eyesight, strong will , rich knowledge- all these are merits that a great trader shall have to command. Finally, please allow us to help you squeeze into the queue of the greatest traders of this century!