Challenges and Strategies in Trading: From Defensive to Offensive System Thinking
1. Proactive Thinking, Preparing in Advance
Trading is never about waiting for problems to arise before thinking of solutions; it's about having contingency plans in place ahead of time. If the market trends as expected, everyone is happy; but when faced with low-probability events or black swans, one must have the capability to respond and avoid being passively hit.
2. Beyond Technical Judgments, Strategy is the Moat
In trading, technical errors are the norm, and low-probability events do occur. Therefore, strategy and risk management are your true safety nets. If technical judgments are wrong, the strategy must be able to save your life.
3. The Test of Human Nature is Far More Deadly than Losses
The next most challenging phase is: “Seeing others make money is more painful than losing yourself.” When others stop their losses and turn around, while the assets you hold do not rise but fall, anxiety and FOMO emotions will quickly spread, leading to a chain of wrong decisions.
4. Don’t Fear Missing Out, Learn to Adjust Positions
Fearing missing out, blindly going all in, and being unable to recover costs are common traps in trading. What is tested here is your ability to “adjust positions in line with the trend”: identifying strong sectors, reasonably rotating layouts, and grasping the rhythm is far more effective than stubbornly holding onto one asset.
5. The Market is Never Lacking Paradoxes, What Lacks is Cognition
Taking BNB as an example, when it was $500, no one dared to buy, and when it rose to $650, there was fear of buying high. When it retraced, there was still fear of making a wrong purchase. This contradiction of “fear of chasing when it rises, fear of catching a falling knife when it drops” actually stems from: not understanding the trend, not knowing whether it is a rebound or a reversal.
6. The Essence of Trend is Not Short-Term Fluctuations, but Structural Changes
True trend signals include: continuously higher lows, decreased volume on declines, and significant breakthroughs of key resistance lines, etc. Understanding these will prevent you from being swayed by short-term fluctuations. Continuing to short in an uptrend is counter-trend and self-destructive.
7. The Market is a Game of Human Nature, the Traps of Major Players Never Show Directly
Major players create inertia through time and space, then suddenly reverse. Candlestick patterns are built from real money; learning to identify major players’ layouts will prevent you from being led by emotions.
Conclusion: The market will not wait for anyone. Only by maintaining reverence, continuing to learn, understanding trends, and preparing contingency plans can one ride the wave when the market comes, rather than responding in panic. The ultimate victory in trading is not predicting the future, but managing risk well and mastering the rhythm.
