Having read many traders' stories, the case of going from 4,000 to 500,000 in four months actually points to the same logic—it's not luck, but having a proven and effective trading system.

The most core aspect is principles. The skilled traders I know mainly focus on intraday trading and rarely hold overnight positions. Why? Because holding overnight means entrusting your risk to market uncertainty, whereas intraday trading allows you to control each risk exposure.

But there's an interesting phenomenon here. Some traders, no matter how good their technical analysis is, still tend to blow up on days when their mindset isn't right. One trader once said, "Today I’m not in the right mental state, my attention is scattered, so I just don’t trade." It sounds simple, but very few can truly practice self-discipline and restraint. Reckless trading is essentially digging your own grave.

They summarized an interesting formula—20% technical analysis, 50% mental state, 30% market conditions. In other words, your psychological state and risk awareness are more critical than technical analysis. The mental state is the biggest factor.

I've seen too many people say they set stop-losses well, but when they actually incur losses, they start thinking about holding through. Consistently profitable traders are invariably those who set proper stop-losses and strictly adhere to them. This isn’t about being timid; it’s about surviving longer.