Core Insights - The article highlights the transformation of a trader, He Yue, who overcame significant financial challenges to achieve success in futures trading, emphasizing that cognitive understanding is more important than technical skills in trading [1][4]. Group 1: Trading Journey - He Yue's trading career began in 2008, characterized by a cycle of gains and losses, leading to a debt of 1.5 million yuan due to short-term trading strategies [2]. - A pivotal moment occurred in 2018 when He Yue invested 200,000 yuan in palm oil futures, which eventually led to a significant profit that cleared his debts [2][3]. - Since 2019, He Yue adopted a trading strategy focused on "extreme varieties," selecting either deeply undervalued or significantly overvalued assets for investment [2][3]. Group 2: Trading Strategy - In early 2020, He Yue invested heavily in soybean meal futures at 2,850 yuan/ton, enduring a drop to 130,000 yuan but ultimately profiting by selling at 3,700 yuan/ton after holding for six months [3]. - He Yue successfully shorted tin futures in 2021 and identified a lucrative opportunity in BR rubber options in 2023, demonstrating his ability to capitalize on market trends [3]. - Looking ahead to 2024, He Yue plans to focus on stock index futures, believing in a long-term bullish trend supported by solid fundamentals and government policies [3]. Group 3: Key Components of Trading Success - He Yue emphasizes that trading success relies on three key components: cognitive ability, execution, and mental strength [4]. - Cognitive ability involves understanding macroeconomic policies and industry logic, which helps in making informed trading decisions [5]. - Execution requires a systematic approach to trading, where He Yue's strategy includes selecting extreme varieties, limiting positions to 30%, and adhering to stop-loss and take-profit levels based on fundamental analysis [6]. - Mental strength is crucial for maintaining confidence in one's trading system, especially during challenging market conditions [7][8].