Chapter Two: Knowing One but Not Two
When trading, most people encounter common problems. Clearly, the market is not aligned with their views, yet they often change their trading patterns due to fluctuations, leading to distorted positions, then transitioning from profits to losses, to resisting trades, to stop-loss. As a result, the price returns but the position is gone. The phrase 'knowing one but not two' means following your inner thoughts. If you are wrong, admit it, but this premise should exist before you concede, as the entire strategy carries the term 'concede' rather than a hasty decision. Often, if the trend moves against you and it’s merely a false signal, you may only have a few minutes to consider your options. Yes, you heard it right, just a few minutes to make a quick decision. If you get carried away or your position distorts, it could lead to rapid losses. A term mentioned by 'Fat House' Bitcoin before is 'avoid the false and strike the true', which is essentially similar. Your losses are not necessarily due to being on the wrong side; it depends on your position tolerance. Lastly, I would like to borrow a saying from Mr. Wang Yangming to share with you: the principle of heaven is the way. The way connects everything and is unified, hence it is the principle of heaven. The mind can govern one; the mind is the way, and the mind is the principle of heaven. Let us encourage each other!