I never take trades that I can't explain the complete logic for.
In the past, when trading contracts, sometimes I would jump in after seeing a long candlestick, thinking "any movement is an opportunity." As a result, I either got caught in a reversal or couldn't hold on, feeling completely uncertain.
Now I only take one type of trade: a trade whose logic can be explained in one sentence.
For example:
"Three attempts to break the previous high but fail, starting to consolidate with decreasing volume, MACD divergence, preparing to short the stagnation."
Or:
"After a continuous increase in volume, a failed attempt to break the high, RSI stagnation + horizontal movement at a high level, bears starting to position."
I do not take trades where the logic cannot be clearly explained. Because I know:
• First, if you can't explain the logic, it means you don't understand the market yourself.
Such trades are not based on a plan but rather on feelings, which carries a high risk.
• Second, if you can explain it clearly, it means you have a picture, rhythm, and a plan in mind.
Even if you hit a stop loss on these trades, you won't regret it, because it's a result of your informed decision.
• Third, a complete logic allows you to remain calm during market fluctuations.
As long as the structure hasn't broken down and the logic hasn't changed, you won't get shaken out by volatility.
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Trading isn't about quick reactions; it's about how clearly you've thought things through before entering.
Whether a trade is worth taking, you know best before opening a position.
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Now, whether I'm detached or slow, as long as the script is complete and the logic can be articulated, I will take action.
Otherwise, no matter how hot the market is, I can remain seated.
Have you recently taken a trade that "couldn't be explained but you did it anyway"?
Feel free to write it down so you won't make the same mistake next time.
