1.🔔 Not even clear on the direction, yet you dare to act? (Chaotic cycles)
The market has three states: up, down, and sideways.
Hourly and minute charts are fighting every day, while daily and weekly charts hide the big trend—just like a big tree doesn’t suddenly grow backward; once the main direction is formed, reversing is harder than you think.
Breaking point: Only focus on the trends of daily and weekly charts; filter out the noise from smaller cycles.
2. 🔔 Charging in as soon as you see an opportunity, what’s the difference from shooting randomly? (Entering without caution)
The market is like a drunk man: Sometimes it reasons based on fundamentals, sometimes it goes wild based on emotions.
Don’t be a 'street hero'—don’t rush to short during a surge (bubbles can last a long time), and don’t forcefully catch the bottom during a crash (the abyss may be deeper).
Breaking point: Wait for the drunk man to start leaning against the wall (signals of weakening trends, such as divergence at the top, volume stagnation), then consider taking action.
3. 🔔 Feeling itchy after a day without trading? (Overtrading)
High-frequency trading seems exciting, but in reality, it’s just giving money to the market.
You think you are playing 'short-term arbitrage', but you are actually stepping into a 'capital meat grinder'—the small profits from fluctuations are not enough to cover a total loss in a trending market.
Breaking point: Trade no more than 3 times a day; if you miss out, wait for tomorrow— the market doesn’t close.
4.🔔 When to be timid and when to be bold? (Emotional mismatch)
Common problems of retail investors: After a big drop, wanting to 'catch the bottom' (resulting in catching falling knives); after a big rise, fearing a 'pullback' (resulting in missing the market).
Don’t counter the market with a 'top student mentality'—in a trend, a pullback is an opportunity, not a risk; a rebound is a trap, not hope.
Breaking point:
- Upward trend: Dare to buy during pullbacks (don’t wait for the lowest point; seize the opportunity when it’s close).
- Downward trend: Dare to short on rebounds (don’t wait for the highest point; enter when there’s a signal).
5. 🔔 Can’t wait even a second? (Haste makes waste)
Good opportunities are like buses; if you miss one, there’s another coming. Rushing to catch it may lead you to the wrong bus.
Data-driven events (non-farm payroll, Federal Reserve decisions) are a feast for institutions; retail investors rushing in are likely to eat leftovers and even get trampled.
Breaking point:
- Aggressive: Wait 5 minutes after data release; even when following the trend, make sure to see the direction clearly before acting.
- Conservative: Wait for the market to stabilize the next day, and enter when the trend is clear.
6. 🔔 Hold on when losing, run when winning? (Not cutting losses)
The biggest bug of human nature: Wanting to run after making 100 bucks, but thinking 'I can make it back' after losing 1000 bucks.
The market specializes in various forms of defiance—it won’t reverse just because you can 'hold on'; it will let you go from a 10% loss to a 50% loss, and then to liquidation.
Breaking point: Stop-loss is like buying insurance; before entering the market, set your 'bottom line', for example, 2% of your capital. If it hits that, cut losses. Don’t let a crocodile bite your hand and then lose your entire arm.
7. 🔔 Blaming losses on 'bad luck'? (Metaphysical trading)
Don’t use 'metaphysics' as a cover: 'This time was an accident', 'Next time will definitely profit'.
Trading is not about enlightenment; it's a probability game—you need to understand position control (never bet more than 2% of your capital each time), recognize probabilities (nothing is 100% certain), and gauge emotions (the market can go crazy more ruthlessly than anyone).
Breaking point: First, fill in the foundational knowledge, then talk about making money. If you haven’t learned to walk, trying to run will only result in a worse fall.
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