Trading can be summarized in these 16 words: The great way is simple, follow the trend, cut losses in time, and let profits run.

First, let's talk about the great way being simple. Many people like to study various indicators, Chan theory, wave theory, but end up confusing themselves. In fact, the market looks complicated, but ultimately there are only two states—up or down. When multiple moving averages are arranged upward, it's a bullish pattern; when downward, it's a bearish pattern. It's that straightforward. Don't overthink it; just follow this simple rule.

Next is following the trend. During an uptrend, go long; during a downtrend, go short. This isn't about being right every time, but about probability. When the market is rising, the chance of a sharp increase is much higher than a sharp decline, so it's reasonable to follow the bulls and take profits. The same logic applies to a downtrend, just in the opposite direction. It's not about right or wrong, but about the magnitude—big moves mean big profits.

The third point is cutting losses in time. There's nothing much to say here; if you judge incorrectly, you must cut your losses immediately without hesitation. Many people lose big money because they fail to do this well.

Finally, let profits run. The money earned should be held patiently; don't rush to exit after making a small profit.

In reality, most traders operate in the opposite way. They like to fight against the trend, even when they have profits, they tremble and exit early; yet when they lose, they cling to false hope and hold on. How can such a mindset avoid losses?

Observe those who have made big money—almost without exception, they live by these 16 words. But this method doesn't make money most of the time because the big market moves don't happen frequently. This is the anti-human nature aspect. When such a move comes, if you can hold from start to finish, you might only get two or three such opportunities in your life to change your destiny.

Trading is fundamentally simple; the hard part is actually executing it. I myself am constantly reviewing, thinking, and reminding myself to stick to these principles. Between knowing and doing, there's a gap that many people can't cross.