Facing the Challenge of Black Swan in Trading Market: Strategies for Success

The black swan that trading has to face

I have read many stories about legendary traders, investors, and fund managers, and I can’t help but sigh in the end.

This is what makes Buffett awesome. He is still alive in the capital market after 70 or 80 years, while those who shine much brighter than Buffett in history have been buried for dozens of years.

The reason why there is such a phenomenon is that there are too many black swans in the capital market, and the recent ones are all small situations.

During the 2008 financial crisis, U.S. financial stocks fell by 98%. Although everyone knows about stop loss, in a place where you are fighting against human nature, losing once and winning in the past will become meaningless.

If you often walk by the river, your shoes will always get wet. If you are often seduced by women, you will fall into women sooner or later, unless you are not a man.

If you make money in the capital market, you must withdraw it, and turn the money earned in the risk market into almost risk-free cash, real estate, insurance policies, certificates of deposit, etc...

Buying stocks is just a step from one risky market to another.