Investing is a game of confidence, and confidence comes from a high degree of certainty about the future potential of the investment. This certainty is derived from a deep analysis of the sector, the position one is in, business progress, the team, and even emotional premiums. Trading, on the other hand, is a game of discipline. Discipline comes from understanding human nature; when a signal is generated within your trading system, you must enter the market, and when it reaches the take-profit or stop-loss level, you must exit. Violating the system can easily disrupt your mindset, turning small victories into significant wins. Both investing and trading are fundamentally about probability; there’s no guarantee that any single move will be 100% successful. It’s a comprehensive consideration of four factors: win rate (how high?), odds (how large?), slope (how long is the time period?), and position size (what proportion?). A good philosophy should be: Correct direction, build confidence, withstand volatility, and take profits at the right time. Each step is a test.