Many people always want to get rich overnight through trading, but in reality, they just want to earn real money. The key lies in these four points.

**The first is the scale of capital.** This may sound a bit harsh, but it’s the truth. Doubling 10,000 yuan to earn 10,000 yuan more doesn’t change much in life; but doubling 1 million yuan—that’s real profit. So what is the true logic of making big money? Heavy position holding. Either your capital size is large enough, or you have the courage to go all-in when opportunities arise. Many people aren’t wrong about the direction—they just bet too little.

**The second is mindset, which essentially means controlling your hands.** Sitting on the sidelines when there’s no opportunity is what most people can’t do. They always feel they must be constantly involved, or they’ll miss out. But actually? Missing the top of a rally at most means watching others profit, with no real loss; buying recklessly can instead lead to real financial loss. Holding cash is the greatest advantage—knowing when to act and when to hold back—that’s the discipline of trading.

**The third is understanding cycles.** In the short term, observe emotional cycles and capital flows—where money goes, that’s where the hype is, even junk stocks can be pumped up; in the long term, understand industry cycles—cold for three years, hot for three years, repeating in cycles. Take traditional banking stocks as an example: no one paid attention in 2022, but now they’re still doubling. Those who understand cycles know what “long-term shorting” means, and they also know that downturns are the best opportunities to get in.

**The fourth is to think clearly about which part of the money you are earning.** This is very important. Short-term trading follows the trend—buying and selling based on emotions and momentum to make money; value investing involves slowly building positions when good projects are undervalued, then taking profits in stages as they heat up; if you plan to earn steady income from dividends, accumulate at the bottom, as long as the yield can stay above 4%, fluctuations don’t matter—just hold and stay put.

Once you thoroughly understand these four points, trading is no longer about luck—you’ll know when to wait, when to act; how much to bet, and how long to hold; whether you’re earning from emotions, cycles, or yields. That’s what it means to trade systematically.