[The Stone from Other Hills] He Wei Gao - "Winning" Philosophy

"The joy of trading is not just in the numbers on the account, but in the feeling of finding a win."

In the futures market, a competitive arena filled with temptation and brutality, He Wei Gao's story is highly representative. He is not a born trading genius; his career is full of setbacks and reflections, which is exactly the journey that most traders go through. The philosophy of "winning" that he ultimately comprehended is the essence forged through his twenty-five years of trading experience.

A Bumpy Career: From the Peak to the Abyss

Entering the Futures Market: A Fleeting Success

· Dream Start: In 1997, He Weihao borrowed 30,000 yuan in capital from his father to enter the futures market. With a simple trend-following trading strategy, he expanded his funds to 300,000 yuan in just one month.
· Cruel Twist: When the market entered a turbulent period, his strategy failed, and due to not stopping losses in time, he almost lost all of his account funds. He recalled, "At that time, I was like a gambler, completely unaware of what risk control was."

Copper Market Dynamics: Peaks and Abysses

· Once-in-a-lifetime opportunity: In 2005, He Wei Gao learned from a friend about the standoff between domestic and foreign funds in the London copper market. He went long with a full position around 36,000, making a profit of 10.6 million in one week, bringing his total account balance to 12.6 million.
· A lesson etched in the bone: Under the persuasion of a friend who aimed for a billion, he gave up his original exit plan. Unexpectedly, the market changed drastically; the state reserves sold copper, leading to a market reversal. His account was forcibly liquidated at the third trading halt, losing over 10 million in total.
· Ironically, after his liquidation, copper prices rose again. This experience made him deeply realize that relying solely on technology and "tips" cannot ensure long-term survival in the market.

The stock market is recuperating and returning to futures.

· Comeback: After the setback in the copper market, He Wei turned to the stock market. With investments in ST Global and CITIC Securities, he grew an initial capital of 80,000 yuan to over 10 million yuan in a year-long bull market, restoring both his funds and confidence.
· The King Returns: In 2012, he made a profit of over 20 million yuan through PTA futures trading. At the beginning of 2013, he heavily shorted rebar, glass, and coke, with his funds surging from 7.5 million yuan to 96 million yuan within 9 months.
· Final Ascendancy: After experiencing a drawdown in his account, He Wei Gao adjusted his mindset and continued to short copper futures at a high position in January 2014, earning 130 million yuan in 5 trading days, completing the most brilliant chapter of his trading career.

The Philosophy of the Word "Win": The Five Pillars of Trading

After experiencing the ups and downs of the market, He Weigao summarized the essence of trading into one word: "win", and broke it down into five core elements:

1. "Wang" (Risk Awareness)
He Wei Gao emphasized that risk control is the top priority in trading. He has adhered to the principle of "stop loss after three consecutive days of decline" in trading and has chosen to take a break temporarily during significant capital drawdowns. True risk awareness ensures that "even if the trading position incurs the maximum loss, it will not affect normal life and other trading plans."
2. "Mouth" (Communication Verification)
He Wei Gao emphasizes communication with market experts, believing that "being able to persuade industry experts to consider this transaction worthwhile enhances one's confidence in trading positions." However, he also warns against blindly following others' opinions; the lessons learned from the copper market trading in 2005 made him understand the importance of independent judgment.
3. "Moon" (Timing grasp)
He Wei Gao has a keen grasp of trading opportunities. Whether it was buying PTA in 2012 or shorting copper at a high in 2014, he demonstrated precise timing. He understands that entering the market too early or too late can greatly impact trading outcomes.
4. "Bey" (Funding Arrangement)
He Wei Gao has always emphasized the importance of capital management. He never invests all his funds into a single trade and always keeps enough liquidity to deal with unexpected needs. This is also the reason why he can repeatedly stand up from failures.
5. "Fan" (ordinary mind)
Having experienced multiple ups and downs, He Wei Gao has always strived to maintain a relatively calm mindset. After his funds dropped from 96 million to 48 million, he was able to calmly rest and, after adjusting for two months, return to the market. This is a reflection of his ordinary mindset of 'not being elated by external gains and not being saddened by personal losses.'

Three Stone Revelation

1. Failure is a part of success.
He Wei Gao's story demonstrates that success in the futures market is by no means accidental, but rather a comprehensive test of knowledge, principles, and human nature. His legendary rise from 30,000 to 1.3 billion in just 5 days is backed by the hardships of two liquidations and several instances of assets going to zero.
2. The combination of technical and fundamental analysis
After experiencing setbacks from initially relying solely on technical analysis and later being swayed by news while ignoring risk control, He Weigao ultimately solidified his investment philosophy of "technical analysis + fundamentals." He believes that only by balancing both can one remain invincible in the market.
3. Flexible Asset Configuration
He Wei Gao's success in the stock market made him realize the importance of "flexibly allocating assets in different market environments, rather than stubbornly sticking to one market." This flexibility is particularly important in today's rapidly changing market environment.
4. Find the feeling of "winning"
He Wei Gao believes that the true joy of trading does not lie in the numbers on the account, but in the feeling of "winning." This feeling comes from a deep understanding of the market, a firm execution of the trading system, and complete control over oneself.

Three Stone Conclusion

He Wei Gao has interpreted the full meaning of the word "win" through his twenty-five years of trading career. His experience tells us that success in the market does not come from making no mistakes, but from the ability to learn from mistakes and continually improve oneself.

His "win" philosophy provides all traders with a clear framework, reminding us not to overlook the five pillars of risk management, communication verification, timing, capital management, and mental balance while pursuing profits.

The true winner is not the one who has never failed, but the one who continually evolves through failure and ultimately understands the essence of trading.