Recently, there have been fewer live broadcasts!

Firstly: It's that I feel there isn't much to discuss about the relatively simple market!

Secondly: It's that the continuous rainy days lately have made me a bit EMO!

Currently, the market isn't that difficult; many people struggle with this type of short-term trading, which is actually a case of being blinded by a single leaf. Generally, those who don't do well in such trades share a common trait: they are fixated on the short-term direction of the market!

Don't understand?

For example, when Bitcoin is around 110, are you struggling with whether to go long or short, torn between whether it will continue to rise or hit a peak and fall back? Don't you feel like both sides have their arguments? In fact, all these questions stem from you getting one question wrong: most people think that trading requires confirming the direction first before making a trade!

However, in practical trading, apart from long-term trading where you must clarify the major direction!

For short-term trading, determining the direction is not the priority. I have always believed that tops and bottoms are tested rather than guessed, so when you reach a decent resistance or support level, what you should do is not to directly enter with a heavy position, but to use a small position to feel out the market. You will naturally know whether the direction is up or down; immersing yourself in the situation will help you see the landscape clearly.

This is a logical issue, as well as a problem based on theory. Testing with a small position is always better than standing from a theoretical perspective to speculate. Whether the situation is good or bad, you must first enter the market, then observe the situation clearly, and finally take control of it!

It's like this: once you have an unrealized loss on your account, you will subconsciously tell yourself that it will bounce back, just hold on a bit longer, but you don't realize that the reason for this mindset is not the signals given by the market! It's your unrealized loss making you feel pained; you are unwilling to admit your mistake, so you don't cut your losses. At this moment, your mind is being controlled by emotions! However, if you switch to a small position, your rationality will take the upper hand, admitting mistakes and cutting losses to change direction will become much easier. When facing unrealized profits, people tend to have a clearer judgment of the situation!

Therefore, those who can really excel in short-term trading are not impressive because of their directional judgment, but rather because of: "adjusting one's mindset," "controlling risk," and "managing positions." Making ten trades and being wrong nine times is not impressive; a true expert can make ten trades and be wrong nine times, but just one successful trade can recover all losses!