Don't rush to buy, and don't rush to sell — because the market will not easily "leave you behind."
If this can be understood, it will completely turn around the anxious mindset of "missing out on selling" and "fear of not being able to buy."
Today, let's talk about the two biggest psychological issues in trading that emerged from the votes in my last post:
Impulsive chasing of a surge - Afraid to miss out;
Unable to hold onto profits - It is the fear of losing;
Unable to hold onto profits - It is the fear of losing;
Two kinds of fears make you continuously led by the market. This is the cycle that most traders get caught in:
Chased very urgently.
Held very briefly.
Saw it very correctly.
Earned very little.
And the root cause behind this is actually very simple:
You have not truly understood that the reversal of a trend is a process, not a moment.
Wang Yangming said: Unity of knowledge and action. "Knowing" is essential for "doing".The reason you are always afraid of missing the selling opportunity and afraid of not being able to buy is that you have not truly understood the 'way of reversal.'
Today, I will try to explain this 'way'—once you understand it, you will naturally become steady.
1⃣ Trend: The market has inertia, and a reversal requires a "shape" to develop.
The market has a natural inertia.
Especially in an upward trend, every decline will see countless people jumping in to take over. However, when the buying pressure starts to wane and sellers become increasingly strong, the Bid can no longer support the original trend, leading the market into a critical stage.：
It begins to fluctuate, start structuring, and begin to "take shape".
You will see various names that you are familiar with:
Triangle consolidation, rectangular Range, head and shoulders top/bottom, wedge convergence.
These sound complex, but they are all oscillations:
Essentially, they are all "the period of adjustment before the market tries to re-establish a trend.”。
Especially in an upward trend, every decline will see countless people jumping in to take over. However, when the buying pressure starts to wane and sellers become increasingly strong, the Bid can no longer support the original trend, leading the market into a critical stage.：
It begins to fluctuate, start structuring, and begin to "take shape".
You will see various names that you are familiar with:
Triangle consolidation, rectangular Range, head and shoulders top/bottom, wedge convergence.
These sound complex, but they are all oscillations:
Essentially, they are all "the period of adjustment before the market tries to re-establish a trend.”。
2️⃣. Emotions should not turn too quickly.
Human nature is the thing that cannot turn quickly at all.
Human nature is the thing that cannot turn quickly at all.
• Those who were just chasing highs cannot turn into a determined bear just with one Candlestick.
Someone who has just stopped losses and exited cannot immediately become a buyer.
Therefore, the reversal of emotions is always half a beat slower than the charts and one step slower than the trend. This is why:
A true V-shaped reversal is very rare, it's an exception, and it's not something you should bet on.
3️⃣IWM live trading explanation: Reversal is not just a matter of a single sentence; it needs to test first.
This is my IWM doomsday PUT operation from yesterday.
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Just take a look at the 5-minute chart of IWM and you'll understand:
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Starting from the high point of 209.6, it fell, and the Candlestick broke down and confirmed at the opening. This segment allows for short selling, although the profit and loss ratio is not high, the win rate is extremely high, suitable for making the first segment of the "emotional release wave."
When it drops to the 207 level, there are multiple signs of a bottoming - this aligns well with trend inertia: as it falls from an upward trend, Bid will definitely continue to pour in at the bottom. Therefore, this position is not suitable for holding onto Put, especially the doomsday warrants must control Hold Positions time, take profits when they are there, exit first, and wait for the market to determine the outcome.
When it drops to the 207 level, there are multiple signs of a bottoming - this aligns well with trend inertia: as it falls from an upward trend, Bid will definitely continue to pour in at the bottom. Therefore, this position is not suitable for holding onto Put, especially the doomsday warrants must control Hold Positions time, take profits when they are there, exit first, and wait for the market to determine the outcome.
Then, between 10:00 and 10:45, the rebound lost momentum, prices pulled back but were unable to stabilize — this is a clear signal: the Bid has shown fatigue, and the Ask is gradually taking control of the pace.
Thus, another breakdown has become a higher probability entry point for the Put, allowing for a follow-up on the second wave of decline.![]()
。
There is no need to bet on a large bearish candlestick.。
Because I know: the trend will not suddenly leave in a V-shape, nor will it complete a reversal in one go.
What I've realized is that the sellers have started to seize the initiative, and the market is gradually moving downwards, trying to find a new 'reasonable price.'
At this point, it is best to follow the structure downward, capturing small segments gradually, which feels more solid and certain.
There is no need to bet on a large bearish candlestick.。
Because I know: the trend will not suddenly leave in a V-shape, nor will it complete a reversal in one go.
What I've realized is that the sellers have started to seize the initiative, and the market is gradually moving downwards, trying to find a new 'reasonable price.'
At this point, it is best to follow the structure downward, capturing small segments gradually, which feels more solid and certain.
Four, the core understanding of Trade: you don’t need to rush for the first wave.
As long as you accept this in your understanding:
"Reversal is structurally built, not completed in one go,"
then you won’t:
Hurry to Buy: because you know reversals aren't based on gambling.
Hurry to Sell: because you know trends won't just turn and run.
What you need is not to intervene at the first moment, but to understand the rhythm of the market and act in accordance with the trend when the structure is complete!
As long as you accept this in your understanding:
"Reversal is structurally built, not completed in one go,"
then you won’t:
Hurry to Buy: because you know reversals aren't based on gambling.
Hurry to Sell: because you know trends won't just turn and run.
What you need is not to intervene at the first moment, but to understand the rhythm of the market and act in accordance with the trend when the structure is complete!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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Sherry111
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蜗居在新加坡的日内交易者
大部分持仓睡之前会平仓，
喜欢抱着现金睡觉💤
胜人者有力，自胜者强
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圆圆c : How can one know whether the yellow fluctuation zone will rise or fall next? Because the lower shadow of the Candlestick in the fluctuation zone is quite long, it cannot rebound but also cannot drop.
Sherry111 OP 圆圆c : It is not known whether it will break through upwards or downwards. After the downward breakthrough, a PUT option was pursued.
Zimi7 : The Share of ideas is clear and includes live trading examples.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")
HitRun : May I ask what Indicators you are using for monikadi?
Sherry111 OP HitRun : Hello, I am not currently using this Indicators; sometimes I accidentally click on it.
圆圆c Sherry111 OP : I suddenly thought of something. After confirming the breakthrough and then chasing it, how should I find the profit-taking point?
Sherry111 OP 圆圆c : There is nothing wrong with taking profits anywhere! Setting a profit-taking point is more difficult than the entry point, and it can't be explained in just a sentence or two. I often don’t sell as well as I should, so I'm probably not qualified to talk about profit-taking points.
圆圆c Sherry111 OP : Selling at a profit is always better than incurring a loss.
HitRun Sherry111 OP : Thank you.
Sillee Potato : You've hit the nail on the head. Thank you for the guidance.![[undefined]](https://static.moomoo.com/nnq/emoji/static/image/default/default-black.png?imageMogr2/thumbnail/36x36 "undefined")