The way to trade is between choices

Gong Wei of Nash investment is one of the first batch of futures trading experts in China. He once dominated mung bean contracts and rubber contracts with artificial high-frequency trading in the 1990s; In 2005, he moved to Chicago and New York and worked in famous overseas hedge fund companies, engaging in foreign exchange trading; It has made profits of hundreds of millions of yuan; In 2014, China Merchants Fund issued global hedge funds and became the forerunner of foreign exchange trading through fund QDII channel.
Gong Wei, as a professional fund manager, trading strategist and champion of CMC Markets Asia Pacific Co., Ltd. in 2008 trading competition (China), has a monthly trading return of over 650%.
2008 will certainly leave a heavy mark in the history of international financial development. The financial market is full of dangers, and the huge fluctuations caused by it will make investors all over the world feel at a loss. In the face of such a volatile market, Mr. Gong Wei, relying on his own experience, has won the prize with an absolute leading edge, which highlights his extraordinary strength in trading. Recently (2008), we conducted a telephone interview with Mr. Gong on Market Research and trading methods that investors are generally concerned about. Here are some excerpts of the interview for readers' reference.

[classic Abstract]

1. I personally regard the transaction as the use of a tool. The success or failure of the transaction depends on the proficiency in the use of tools and the types of tools.
2. What kind of fruit you can harvest depends on how many bamboo poles you have and how long the longest one is. We call it "bamboo pole theory".
3. In the face of big market fluctuations, still be able to maintain their own objective analysis of the market, have full confidence in their own judgments and decisions.
4. The main purpose of fund allocation is to grasp the degree of allocation. I don't always follow a fund allocation model.
5. I follow the principle of doing something and not doing something. Not every possible trading opportunity will make me not let go. "Giving up" sometimes means more choices.
6. I don't predict, not only because the market can't predict every step, but also because prediction can only make traders lose objectivity and commonplace.
7. Whether trading opportunities or analysis methods, their choice is very important for trading.
8. A person who knows how to respect the market, is fully prepared, and views the trade-off relationship correctly can be regarded as a qualified trader.
9. So far, I haven't encountered any trading system that can help traders make profits for a long time. The best way to trade must be to change.
10. In fact, dealing with other businesses requires monographs and investment. It requires no less time / energy investment than other businesses. That's the reason.
11. Investment is very close to our life, it should be said that it is a normal, exists in all aspects of life, successful investment does not need any profound theory.
12. Successful traders are not mysterious, they just do more, longer and more familiar with what they do.
    [full interview]
    Editor: Hello, Mr. Gong! First of all, congratulations on winning the second place in the Asia Pacific region and the champion in China of CMC Markets Asia Pacific Co., Ltd. Your trading results also won the honor for the whole China division. Now many investors are highly concerned about the results of this trading competition, so today I will give you an exclusive interview on behalf of the company, hoping to let you know more about yourself and your investment philosophy. At the same time, I hope we can get some successful enlightenment from your experience.
    Gong Wei: you're flattering. I'm very happy to have achieved this. I'd like to share some ideas on investment with you.
    Editor: Mr. Gong, in the face of such a turbulent market and unknown competitors, you can still achieve such good investment performance. What factors do you think contribute most to your successful trading?
    Gong Wei: I personally regard trading as the use of a tool. The success or failure of trading depends on the proficiency in the use of tools and the types of tools.
    "Proficiency" is what we call trading skills and abilities. Everyone is very different, and even one person will be different at different trading time. People often use the "bucket theory". The amount of water in the bucket depends on the shortest piece of wood. The disadvantage of trading method is short board. Only by constantly correcting short board can traders make their trading closer to success.
    The understanding of "tool type": when you go to the orchard to produce fruit, what kind of fruit you can harvest depends on how many bamboo poles you have in your hand and how long the longest one is. We also call it "bamboo pole theory", which is diametrically opposite to the barrel theory mentioned above. Trading varieties are equivalent to bamboo poles, and profits are equivalent to fruits.
    In this competition, I can find more profit points in the market other than foreign exchange with the help of international contracts for differences, such as shorting the recent U.S. index with index contracts for differences. These new profit points play an important role in my investment performance in this competition.
    Editor: Mr. Gong, according to our understanding, you have quite rich investment experience in the domestic market. What is the relationship between these experiences and your winning this competition?
    Gong Wei: the mentality of trading is very important for me to win this competition, and the formation of the mentality of trading is inseparable from my past investment experience.
    Since the 1990s, I have invested in China's stock market, and then moved to the domestic futures market. These experiences have gradually cultivated my ability of independent thinking and calm judgment. In the face of big market fluctuations, we can still maintain our objective analysis of the market and have full confidence in our judgment and decision-making.