The Old Carpenter's Revelation: Trading is an Art of "Holding Gaps" The old carpenter's final teaching of "Leave a Gap" reveals the common philosophy between carpentry and trading. Wood needs gaps for buffering during changes in moisture, and trading also requires flexible space during market fluctuations. Just as the mortise and tenon structure achieves a balance of rigidity and flexibility through gaps, trading systems balance certainty and uncertainty through "holding gaps," avoiding suffocation from excessive pursuit of precision.
2. The "Two Holds" Rule of Trading 1. Hold Empty: The Wisdom of Holding Cash - Artistic Empty Space: Chinese ink painting creates artistic conception through empty space; trading empty space accumulates energy through holding cash - Psychological Training: Overcoming "Account Anxiety" and cultivating the courage of holding cash with a "non-action approach" - Practical Value: During the 2022 Federal Reserve interest rate hike cycle, those holding cash avoided a 33% drop in the Nasdaq index
2. Hold Gap: Flexibility in Entry and Exit - Price Gap: Better to buy at 5% higher than to chase the lowest price (Case: Nvidia AI chip stock in 2023, early buyers missed a subsequent 200% rise) - Stop-Loss Gap: Set a tolerance space of 3%-5% (During the 2021 Bitcoin flash crash, those who strictly implemented a 7% stop-loss preserved their capital) - Take-Profit Gap: The "Big Profit Stops" Rule (In 2020, those who insisted on a 15% take-profit on Kweichow Moutai stock avoided a subsequent 30% pullback)