The Stone from Other Mountains: Stanley Kroll - A Long Term Trading Master Forged by Patience and Discipline

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"The market is like the primeval forest of Africa; the most important thing is survival and waiting for opportunities."

In the ever-changing world of trading, most people are eager to chase short-term profits, yet very few can elevate patience and discipline to the level of trading philosophy like Stanley Kroll. This long term trading master is renowned for his unique "sitting on profits" method, creating an investment legend that grew from $35,000 to $2 million during the period from the 1960s to the 1990s.

Legendary Career: From Small Trader to Long Term Master

Stanley Kroll's trading career began in the late 1950s when he worked as a regular securities analyst on Wall Street. Unlike many traders of that era, he did not have an illustrious background or substantial starting capital; his success came entirely from a profound understanding of market principles and strict self-discipline.

His career has gone through several key stages:

1. Early Exploration Period (1960-1967): During this time, Crow accumulated experience through small-scale trades and gradually formed his own trading philosophy. He later recalled, "My early trading was like most beginners, filled with unnecessary frequent trading and emotional decisions."
2. Breakthrough Period (1968-1973): Cro began systematically applying long term trend following strategies. During this time, the accounts he managed grew from $35,000 to $500,000, initially validating his trading philosophy.
3. Glorious Period (1974-1994): This was the golden period of his trading career, during which he grew his account balance from $500,000 to nearly $2 million through famous commodity futures trading in sugar, copper, and coffee. The most notable was his 5-year holding of sugar futures, which ultimately yielded a profit of over $2 million.

Kro chose to retire from trading in 1995 at the peak of his career, a decision that perfectly embodies his risk control philosophy - "Knowing when to exit is just as important as knowing when to enter."

Core Trading Philosophy: The Art of Long Term Holding

Stanley Kroll's trading system is based on several simple yet powerful principles that continue to have profound guiding significance for traders today:

1. KISS principle (Keep It Simple, Stupid)

Kro believes that simple systems are often the most effective. He once said: "In trading, complexity does not equal effectiveness." His trading system is mainly based on:

· Long term price chart analysis
· Simple trend judgment indicator
· Basic risk management rules

2. Long term holding theory

Klo is a firm practitioner of long term trend tracking. He believes that: "Profit comes from the trend, not timing." Specifically includes:

· Only establish positions in clear trend markets.
· Ignore minor market fluctuations and focus on major trends
· Once the trend is established, patiently hold until a signal indicating the end of the trend appears.

3. Risk control first

Kro regards risk management as the core of trading. His risk control methods include:

· The risk of any single transaction shall not exceed 2% of the total account amount.
· Use a gradual position building approach instead of establishing all positions at once.
· Set clear stop-loss points and execute them decisively.

4. Emotional Discipline

Kelong believes that 90% of successful trading depends on psychological factors. He emphasizes:

· Eliminate the influence of greed and fear on decision-making
· Be patient and wait for high-probability trading opportunities.
· Stick to the trading plan and do not change the strategy due to short-term market fluctuations.

Classic Battle: The Five-Year Long Term Run of Sugar Futures

Stanley Kroll's most famous trading case occurred in the sugar futures market from the late 1970s to the early 1980s:

1. Timing for building positions: In 1978, when sugar prices were at historical lows, Kro discovered through fundamental analysis that the global sugar supply and demand pattern was changing, and began to gradually establish long term positions.
2. Positioning process: Over the next five years, sugar prices experienced multiple significant fluctuations, but Kro remained confident in his analysis and insisted on holding his core position.
3. Position Adjustment Strategy: During this period, he flexibly adjusted his positions based on market conditions, appropriately increasing his holdings during price pullbacks and partially taking profits during price surges, while always maintaining a certain level of long term exposure.
4. Final Harvest: By the time of closing in 1983, this trade brought him over 2 million dollars in profit, becoming a classic case of long term trend following.

This transaction perfectly embodies his trading philosophy: "Once you have established your position, the most important thing is to learn to sit still, unless there is a clear signal to close the position."

The Three Stones Revelation

1. The Power of Simplicity
In today's market filled with complex algorithms and high-frequency trading, Crow's KISS principle reminds us: over-complication often backfires. An effective trading system should be clear and easy to understand, facilitating execution. Modern traders should avoid falling into the trap of "indicator overload" and instead focus on a few truly effective core indicators.
2. The Scarcity Value of Patience
Kro's success proves that "in the market, patience is a rare quality." In today's culture of instant gratification, cultivating the ability for patience and delayed gratification may become an important competitive advantage for traders. This means learning to forgo small opportunities and focus on the truly promising larger trends.
3. Systematic response to emotional fluctuations
Kro recognized early on: "In trading, the biggest enemy is not the market, but oneself." He advises traders to constrain the influence of emotions by establishing a strict trading system. This insight is particularly forward-looking in today's increasingly important field of behavioral finance.

Three Stones Conclusion

Stanley Kroll once profoundly stated: "Traders need to possess two qualities: one is patience, and the other is more patience." This statement reveals the core secret of his success and points us in the direction of surviving and developing in a complex market.

Years after his retirement, Cro's trading wisdom still shines with the light of truth. He left us not just a set of trading methods, but an attitude and philosophy towards the market. In the fast-paced world of trading, Cro reminds us that true success comes from adhering to simple principles, believing in long term trends, and controlling one's emotions.

When we look back at the career of this long term trading master, we can't help but ponder: in today's information explosion and fast-paced trading environment, do we need to return to the simplicity, patience, and discipline advocated by Kro? The answer is likely yes.

In the end, the market will reward those traders who respect the rules, remain patient, and adhere to discipline, while punishing those who try to take shortcuts and chase short-term profits. In tomorrow's series, we will continue to explore the wisdom of another trading master and see how his trading philosophy differs from that of Stanley Kroll.