What is trading discipline? What is execution power? Why do we keep making the same mistakes? The core issue is cognitive errors, the presence of a gambler's mentality, and being too naive about the market. We fail to realize that the market is dynamic and constantly changing. A single large candlestick can break a structure, and three candlesticks can change beliefs. This is not a joke; it's a cold reality!

When trading, you must recognize yourself, understand your capabilities, and know your positioning before discussing anything else. As a retail trader, you can at most use a 4-hour timeframe, and generally, you are trading on a 1-hour chart, entering and exiting on a 15-minute chart. But you often look at daily, weekly, or monthly charts; what is the point? Those are for the institutional traders! They are used for making plans. Why look so far ahead?

Why do you hold onto losing positions, and why do you get liquidated? Isn't it because you looked at larger timeframes and stubbornly believed that the price hadn't finished moving?

Many people are using indicators, but indicators have a delay, and sometimes they even show the opposite. The main function of indicators is to estimate approximate top and bottom areas. Within this range, you should manage your position to enter or take profits. You shouldn't insist on finding an exact breakout point. And you definitely shouldn't be searching for a holy grail of trading! Do you think switching to a different indicator will make you wealthy? Naive!

For stop-losses, we should set the maximum stop-loss level (cut-loss line) at potential reversal points. You should mark this position; when you reach it, you must grit your teeth and cut your losses, even if it hurts! Then set your stop-loss line based on the losses you can tolerate.

Many people do not set stop-losses, hoping to recover by locking in positions. Opening both long and short positions is like a left-brain versus right-brain conflict; can your interpretation of the market support such actions? I've seen too many people lock in positions only to become frustrated and then end up with a huge liquidation.

In this market, many think about buying from the bottom and selling from the top, trying to eat from the fish's head to its tail! I can't say you're wrong for opening both long and short positions. Going short in a bullish trend and going long in a bearish trend has the worst cost-effectiveness. A drop in a bullish trend is for you to reduce your position, and you need to closely monitor the stop-loss level to enter. Similarly, a rise in a bearish trend is for taking profits. If you insist on buying at the lowest point and selling at the highest point, you are just making things difficult for yourself.