Trading: Don't be blinded by price, the cost structure hides real value
Do you think trading is just about watching prices jump up and down? Chasing highs and cutting losses, heart racing? You're completely wrong!
What truly determines your profit and loss is not the fluctuating price numbers on your screen, but the invisible hand of the market's cost structure behind it!
Price volatility is like the raging waves on the sea, unpredictable and changing in an instant. If you anchor yourself to price, your emotions and judgments will swing wildly, being greedy at highs, fearful at lows, and ultimately getting lost in the noise of the market.
Price is merely a façade; it always fluctuates around one core: the true cost of market participants.
Market Structure: A precise map of cost changes
So, how can we gain insight into cost changes? The answer lies within market structure. Structure is not an abstract concept, nor is it a subjective illusion that varies from person to person.
True market structure:
Standardized and Unified: It has objective, clear, and definable standards. Different opinions arise only from chaotic standards! Under a unified standard, there is a consensus among many, and the structure is confirmed at that moment.
Single Direction: Structure inherently has directional attributes, with no exceptions. When the structure is complete, the direction ends, and a new structure is in gestation.
Cost Revelation: Each structural form is a concrete expression of specific market participant behavior (bull-bear contest, chip exchange), and its essence is the trajectory of the market's average cost.
The Dual Wisdom of Trading Structure
Think big, act small; win before you fight: Once a higher-level structure is completed and direction is established, engage in lower-level structures. This is riding the coattails of a major trend, flowing with the current, essentially continuing the direction of the higher-level structure.
Gather small to achieve big; accumulate small victories for great wins: Engage when lower-level structures are not yet complete, capturing the momentum of their evolution into higher-level structures. This is accumulating small steps to reach a thousand miles, amassing profits during structural growth.
The holy grail of trading is not in chasing elusive price fluctuations, but in deciphering the cost code revealed by structure! Every bit of your profit stems from the ebb and flow of market costs. Structure is your strongest compass for interpreting cost changes, following the flow of funds, and ultimately seizing market dividends.
The market is unpredictable; the key is to seize the right moment to strike. If you are still confused, you might as well follow me.
