Trading Realm: Observe the Market as Yourself, Achieve Serenity and Freedom
The essence of market fluctuations is a projection of collective psychology. True trading wisdom lies in examining the market and oneself with a clear perspective, breaking through the limitations of human nature through awareness.
1. Step Outside the Market to Observe Fluctuations
• Detachment Allows Insight
When you see the mountain, you are already outside the mountain; when you observe the river, you are already outside the river. When you can clearly perceive the greed and fear in the fluctuations of K-line, you have risen above the emotions. Overly focusing on price details is like being in a dense forest and unable to see the whole picture; only by jumping out of the current fluctuations can you see the essence of the trend.
2. Identify the Traps of Emotions
• Awareness Equals Control
When you realize “I am anxious about missing out,” the anxiety has lost its effectiveness; when you notice “I am fearful of losing,” the fear loses its dominance. The unraveling of human weaknesses begins with naming and observing them.
• Obsession Obscures the Truth
The fixation on “inevitable rise” and the delusion of “accurately timing the bottom” essentially attempt to distort the market with subjective will. True decision-making requires letting go of expectations and focusing on current signals.
3. The Wisdom of Following Trends
• Go with the Flow, Not Against It
Flowing water does not rush ahead; it seeks to flow endlessly. Understanding the collective behavioral logic behind K-line, accepting the uncertainty of the market, allows one to capture certain opportunities amid fluctuations.
• The Market is a Clear Mirror
Every tick of the intraday chart reflects your cognitive boundaries: the impatient see noise, while the composed see patterns. The process of breaking through mental demons is precisely the journey of cognitive elevation for traders.
Essence Extraction
The Three Realms of Trading Cultivation:
Observe the Market (Insight into Collective Psychology) → Observe Oneself (Awareness of Human Weaknesses) → Transcend (Follow the Essence of Trends)
When you can see market fluctuations as a mirror for testing cognition, you gain the composure to navigate through bull and bear markets.