For a trader to be in the 5% trading club of the world, that means that his account receives consistent returns, and that 95% of the traders in the world do not reach the heights. What we need to be clear about is that these successful traders set up an account with small but steady gains and build it at a controlled pace.

Then Tianyan posed a question to everyone: "What do you think is the main reason why only a small percentage of people in this world end up getting rich?" The answer may vary. Some people think that they are just in the good times, some people or think that they seize fleeting opportunities...

But what Tianyan is trying to say is that while most people in the world are not prepared enough to consistently do what it takes to become rich, a small percentage of people do, and this is also true in the financial world.

Either statistically or economically, most traders end up losing money. When you exclude variables that are truly unfair, such as being born in economically depressed areas or being born with severe physical or intellectual disabilities, the main reasons why 95 percent of people fail in things like trading, business and wealth creation are almost the same.

So what's the difference between the top 5% of traders and the bottom 95%? Tianye thinks there are several reasons.

1. Able to think and act correctly

How traders think and act in the market is the number one factor that determines whether you can make money in the long run. In volatile markets, you can't be overly "emotional" or allow yourself to be overly influenced by recent trading results. Coming and going in the market is "profit" and "loss", and can not be because of a little setback to their efforts wasted. Part of thinking and acting correctly in the market is believing in yourself, and part of it is judging what the market is going to do.

It is necessary to remain calm and confident even in the face of the temptation of consistently profitable trading and adverse circumstances. The top 5% of traders think and act properly in the market, so much so that they have developed a "sixth sense" in the area of trading intuition in the market, as well as "intuition", which is the result of years of thinking correctly about the market and acting correctly in it.

2. Look for "rendezvous" signals

What we can do is to first understand the noun "convergence". In short, the dictionary means (moving)(water) gathering, meeting. In financial markets, it means "a point in the market where two or more levels cross each other, thus forming a 'hot spot' or 'meeting point' in the market."

At any time, whenever you capture multiple confluence factors in the market, it adds "weight" or "authority" to your financial market. Professional traders know that they need to tilt the odds in their favor, and one way they do this is by knowing what "evidence" on the chart constitutes a "confluence" and then waiting for those things to come together to form a high-probability entry.

These "convergence factors" different market participants have their own views, but the convergence factor is essentially the "trend", which is itself an important factor of convergence. In addition, you want to find as much technical chart evidence as possible to support the trade.

3. Profit strategy

Professional traders know very exactly what they are looking for in the market, and that is yield. To this end, they have a clear trading strategy, patiently waiting for the right "node" to form for them to enter the market.

In financial markets, you need to have a clear library of strategies to succeed, and this is achieved by spending a lot of time backtesting and researching trading strategies.

4. Think of trading as a "business"

Professional traders view their trading career as a business, and they are measured by revenue, which consists mainly of costs/expenses (losses, computer equipment, market data, etc.) and its revenue (winning trades). Just like in business, when your income is greater than your expenses, you will make a profit. But the sad thing is that for most of the bottom 95% of traders, their fees are getting bigger and they are losing too much money because they are too risky, trading too much or not knowing what they are doing.

Doing business requires knowing your costs, and so does trading. Only by clearly understanding the various factors that affect "income" can you earn unexpected surprises in the next business.

Perhaps most importantly, the top 5% of traders understand that self-mastery is the path to mastering the market. The market is not controlled by anyone, all you can do is control yourself.

So "How to master myself"?

The first is to accept your imperfections, to accept that you are flawed, just like everyone else in this world, and that these flaws mean that you are normal, that human beings do something wrong in the marketplace simply because there are limits to what we can do. For example, after the outbreak of the pandemic in 2020, Buffett bought American Airlines at a low price, but he cut his meat and got out a few months later.

So if you continue to educate and open your mind to not accepting failure as an option, you will have a chance to rise from the bottom 95% of traders to the "coveted" 5%.

Therefore, remember that trading can not be like Aladdin's magic lamp, what you want to succeed. Only by constantly improving ourselves and moving towards the established goals can we achieve them.