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;
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....

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