In the market, traders' conventional thinking often remains at basic technical analysis and short-term market reactions, while neglecting the deeper structures and logic behind the market. Just like a novice chess player focusing only on the pieces in front of them while ignoring the overall layout of the board, most traders are accustomed to observing price fluctuations but struggle to see the more complex operations behind the prices.
In reality, the market is much more than just price fluctuations; it is a structural game. Like a chess game, a trader's success depends on how they observe and respond to the overall situation. The depth and complexity of the market lie not in the supply-demand mechanism understood by traders, but in a carefully designed and guided liquidity allocation mechanism. In this mechanism, the flow of large funds and the intentions of small funds intertwine, creating complex price fluctuations. Large institutions dominate the game with stronger information and capital control, so to achieve stable profits, traders must learn to think from the 'big players' perspective to assess market trends.
This shift in thinking is especially crucial in trading. We must realize that the market consists not only of charts and prices but a series of structures, patterns, and behaviors. Only by shifting our focus from short-term fluctuations to the overall structure of the market can we form a deep understanding of it. This is not merely learning a new technique or using a new tool but requires fundamentally understanding the logic of market operations and integrating this understanding into practical trading strategies.
Many traders entering the market always carry high expectations and a strong desire for profit, believing that mastering technical analysis or a unique trading strategy will allow them to profit easily. However, reality often does not meet expectations. This confidence becomes an 'illusion' in the market.
Profitability is not just about knowledge and skills; it lies in a deep understanding of the market. For most traders, mastering the core of technical analysis is not enough to navigate the market smoothly; it is more likely to lead them into the 'illusion of easy gains'. This illusion causes traders to overlook the fundamental risks behind the market, mistakenly believing that mastering more strategies will achieve financial freedom.
True profitability lies in maintaining calmness and rationality in the market, managing risk and position well, and facing gains and losses with an objective mindset. Even with technical advancements, one must still acknowledge that they do not fully understand the market. Only through continuous self-reflection and constant vigilance towards the uncontrollable nature of the market can one survive in this uncertain environment.
New traders are always attracted to trends, believing that following price trends is the easiest way to profit. However, these trends are merely 'traps' designed by the market.
Factors such as trends, support, and resistance in the market can be very misleading, making one mistakenly believe these are the core of trading. However, the true background of the market does not rely on trends but is based on the operational logic of institutions. Institutions guide price movements, setting up various 'traps' such as trends, support, and resistance, leading traders to mistakenly think this is the true representation of the market.
In this situation, traders' actions often passively conform to institutional manipulation, forming a programmed thinking pattern. Each trader's thinking is 'programmed' into a certain reaction within the market's rules, often lingering in behaviors induced by the market. Only by breaking this programming system can we truly see the essence of the market and find its core logic.
Institutions, as the dominant force in the market, manipulate it using their capital and information advantages. Their trades not only affect prices but also guide traders' behavior through structural design and news propaganda, creating a 'collective illusion' for traders to obtain the liquidity they need. The sheer size of institutional capital limits their flexibility, making liquidity a core demand of institutions.
Rather than trying to predict the market, we should focus on the liquidity needs of institutions. Understanding the concept of 'liquidity' can help traders re-examine market behavior, moving beyond merely following superficial price fluctuations to observing the clues within those price movements.
Key Point 💎
The market is a complex game system with significant psychological strategies. If traders want to survive long-term in this system, they need to continually enhance their cognitive abilities, refine their thinking methods, and learn to understand the operational logic of the market from a higher perspective. Facing various 'induction programs' designed by institutions, one must switch their thinking to analyze the market from the institutions' perspective, grasp the liquidity within, and develop an independent market judgment to avoid blindly following trends.
This transformation is not just a technical improvement but a leap in cognitive understanding. To establish oneself in the ever-changing market environment, one must continuously perfect themselves, remain calm, and respond to market changes with an independent and rational approach. Only then can one find their own profit opportunities in a market full of uncertainties.
Break free from the dream and transform from a 'participant' in the market to an 'observer'. This shift in perspective will help us avoid becoming victims of the market and establish a trading system that truly suits us, allowing us to continuously hone and improve in the market.