The Concept Of Yin & Yang In Trading The Financial Market
Yesterday, I was reading an article about the Yin and Yang in TAOISM. In Ancient Chinese philosophy, "Yin and Yang" is a concept of dualism, describing how seemingly opposite or contrary forces may actually be complementary, interconnected, and interdependent in the natural world, and how they may give rise to each other as they interrelate to one another.

So let us see how the world have the Yin and Yang,

-Man Vs  Women,
-Sad Vs Happiness,
-Worry Vs Abundance,
-Rich Vs Poor,
-Resentment Vs Forgiving,
-Feeling Not Enough Vs Joy Abundance
-Good Decision Vs Bad Decision
So what are the common thing I see with the concept of YIN YANG and the world of trading / investing in the Financial Market?

1. Profits Vs Losses!

Before You Start To See Real Profits, You must experience either small losses or Big Losses!! These losses are not to bring you down. But rather as a learning lesson. After understanding losses, then you will appreciate your profits in the future

2. Quick Rich Mindset Vs Consistent Profits In Long Run.

Every newbie has a big dream! They were hoping to turn $100 to $20,000 in One week!! This unrealistic goal makes many newbies lose money in less than a week.

The question is Why a lot of newbies LOSING MONEY?? Well, with $100, they trade Bigger Lot size, beyond their money management! Of course, if you win! You Win Big! But what if hit your Stop Loss! You Hit Big Loss as well. Usually can wipe more than 50% of your capital. So learn to trade according to your Capital. Learn how to trade consistently with smart Risk Management 2% to 5% from your total capital (Value At Risk).

Well if you have small capital of $100 to $1,000, please trade consistently. Give yourself the first 24 months to find your edge. Yes, sorry to disappoint you, trading is a long term game. Period. It is not about who get RICHER first... It is about who stays longer and Survive in the game.

3.  Low Month Profits Vs High Month Profits.

Wait!! Don't QUIT YOUR JOB Now and Become A Full-Time Trader to soon. Hereby, I put tables of Top Trader in World Cup Championship in Futures Trading. If you notice, Larry Williams achieved the highest Return on Investment(ROI), with 11,376%, and Andrea Unger won 4 Times World Champion (To Date). What do they have in Common? They understand the market has cycles... 

Sometimes it will be TRENDING!! and 60% to 70% It will be in Sideways.. So Nothing is FIXED here, my friend. Not Fixed income for you every month. Mr.Market will disappoint you. (I also put the table of Larry Williams Real Live Result on a Monthly basis. You will notice, there will be a good month, there will low profits months, there will be the entire month with losses as well). So make sure you have enough savings aside or side hustles (business) for your monthly expenditure.

4. PERFECTIONIST (Holy Grail) Vs  REALIST (Finding Your Edge)

This is the truth, each of the trader (regardless of newbies, or seasonal trader) cannot escape from finding the new magical indicators, new Robot, New EA, new mentors, new gurus, new software, and new trading tools. No worry you are not alone. It is understandable, What you are looking for is actually an "Improvement".

However, I have seen, traders keep on searching for the trading Holy Grail (Super Secret) that can give them 90% to 95% accuracy! They are looking a SureFire Strategy! So this is not realistic!!
Yes, I keep on received this message again and again. Guys, look at the tables and diagrams below. If the world champion also experiencing some losses, so do you! Come on guys, even George Soros loses Hundred Millions of Dollar from Bad Decisions! Yes! Even Warren Buffet misses out on good companies. If these billionaires can accept Losses. Why not you?  Therefore, find the trading strategies that give you positive expectancy (Find your edge). 

There are no REAL answers for this, to be frank! Some trader may find their edge after trading for 24 months.
Some trader studies a few strategies over 100 to 200 times of executions, and finally, find a positive outcome.
Some traders realize they are suitable in Scalping rather than Swing.
Some traders prefer Swing rather than Scalping.
Some trader only targets 100 pips per week, that's all!  
Some trader used only a simple method, naked chart, trendline support, and resistance.
So you need to find what suits you. That is what makes the market so dynamic.

5. Be A Good Loser  Vs Be A BAD LOSER!

Alright, this is easier to say than done. Honestly, I have seen pro trader that had experienced it for the past 30 years. And yet he/she still learns how to master the term of "BE A GOOD LOSER". Meaning that you have to learn and ADMIT YOUR MISTAKES! Accept the bad trade and manage your risk. YOU CANNOT BE RIGHT ALL THE TIME!

BAD LOSER always associate with these statements

"Oh Gosh!! I should Cut Losses Early if I know this gonna happen!"

"Oh GOsh! I should Hold My Trade Longer! My profit will be higher if I know it is going to Trending Crazy like this!!"

" This indicator not working, I tried 3 times already!! I lose all my money!! I need to find indicators that give me winning all the time!"

" This is madness! I just lost $200, I need to make it back right now! I want to take my revenge on you, Mr. Market! Let me double and triple my lot size and do the opposite"

"Oh My God!! I forgot to Put My Stop Loss!! I remember I suppose to put this earlier!! but I really forgot! Now lose $1,000. This is really BAD LUCK for me"

You see, when you become a Bad Loser, you can lose your rational in trading. End up being a gambler. Understand this, if you hit few times stop losses, or losing streak.. it does show the market may be too volatile, and you need to learn walk away from your trading desk.  Only trade when you are calm and can see a clear signal. Learn how to be A Good Loser, before you become a Profitable Trader


Oh Yes!! You win Big Trade Last Month!! Congrats!  Big MONEY!! but that doesn't mean you understand the market 100%. That does not mean you can start to look down on other people, belittle other new traders, and being arrogant.

I have a story I wanna share. I had help, one new trader, for the past years, and I will never forget about this trader. I assisted him. He is absolutely a newbie and has no idea about trading the market. He was a successful entrepreneur by profession. And yes he has BIG CAPITAL as well. I assisted and guided him, he made his first $1 Million in profits! Follow by another month, he made another $300K profit in trading multiple instruments.
Week by week his attitude change. His EGO and His Pride take over him.One day, he said " I am the Greatest Trader in The World!!  I know everything already!! I master the game!!" and he started saying sentences that reflect his true character. 

Instead, a word of "Thank You", he said  "ALL MENTOR is PURE BULL S**T"". "HEY!! I AM BETTER THAN ALL THE GURUS !!..  " I made MORE MONEY THAN YOU ALL!!",  " I AM A REAL TRADER!!"

Imagine, this is the guy previously have no idea how the price move, no idea about support and resistance, no clue about technical analysis, no idea how to do charting, and clueless how to find good financial instruments, and just a little success end up showing his true colors. Well, in life we will meet one or two-person like this in the world.

Until one day, Mr. Market humbled him down, took ALL HIS PROFITS in a few weeks. He became so emotional and wiped his capital for almost $300K. He stopped! He realized all his trades against all the rules. No Money Management at all and he took a lot of revenge.

So learn to be HUMBLE my friend and trade on moderation.
We all still learning, and we will always become students of  Mr. Market...

Keep On Learning and Trade Wisely. I believe you will become a Successful Trader and Investor One day..

Hope this will inspire you.

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