Summary of Understanding Chans Theory Trading

• Initial Confusion: While studying Chans Theory, I was fixated on predicting market fluctuations, closely monitoring the market but lacking confidence, feeling lost in making buy/sell decisions and waiting for the right timing.

• Shift in Understanding:

◦ There is no need to forcibly predict the market; instead, prepare for various possible scenarios in advance and respond flexibly according to market trends to avoid panic and regret.

◦ The value of Chans Theory lies in providing clear plans at key points, such as structural judgments after breakouts, whether to chase gains, or to contract or wait when not broken, ensuring preparedness.

• Reflection and Comparison:

◦ I once believed trading relied on intuition, but later discovered that intuition is unreliable; it is necessary to understand structure and clarify the types of market trends.

◦ Chans Theory is not a mechanically applied theory but a tool that points the way in a chaotic market; the market has its own rules, and with Chans Theory, one can build their own trading framework.

• Reason for Persistence: Chans Theory provides clarity in trading, understanding mistakes and their causes, knowing when to stop losses, knowing how to operate when the market moves, and understanding why not to act, bringing a sense of security.