Let's Talk About Being in Cash

In the long journey of trading, you'll find that learning to stay in cash may be one of the most subtle yet important lessons. After experiencing significant losses or even making a big profit, it’s best to give yourself a bit of time to stay in cash, to catch your breath and organize your thoughts. This idea may sound simple, but truly achieving it tests one's patience.

New traders often focus all their energy on finding the 'perfect' entry point. They constantly hope to buy at the lowest point and sell at the highest, as if that would give them the best price advantage. However, upon reflection, this obsession is mostly due to a fear of normal market fluctuations and the shadow of losses. They always wish that as soon as they make a move, the market will align with their expectations, often setting their stop-loss orders too strictly, as if binding their hands and feet with a thin line. What happens as a result? The market wobbles slightly, and the stop-loss gets triggered, leading them to be swept out of the game. Over time, opening positions can even become a psychological burden, making people hesitant to trade.

The market will always throw out various temptations, like colorful candies that make people eager to act. But those who are truly skillful can quietly hold their cash position, like a wise person standing on the shore, waiting for the moment when the water is clear and the fish appear. This kind of composure, this courage to choose to wait in uncertainty, may be the most precious practice in trading.

Thus, being in cash, while it sounds simple, is like a mirror reflecting the trader's inner self. It is not only a strategy but also an understanding of oneself and a respect for the market. Learning to stay in cash and to wait on this path, I believe, is a sign of a trader's transition from naivety to maturity. Let’s encourage each other!