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....

A few days ago, I posted about Options Trading in the moomoo Community, and a friend commented:
“Small bets are for fun, but making money still relies on long-term investment.”
Does this phrase sound familiar? Haha, this is a topic I've really wanted to discuss for a long time 🙂, because I've heard it too many times. Whenever you talk about short-term trading or leverage, there is always someone who says:
"What you are doing is gambling!"
"Trading short is just gambling."
"Using leverage is even more gambling on top of gambling."
"What kind of investment is considered gambling?"
Is it categorized by the length of time to Hold Positions? Or is it categorized by whether there is leverage?Many people view 'long-term holding' as a kind of natural righteousness, as if simply not moving is not gambling. But what I want to say is:Is it classified this way? Or based onwhether there is leveragefor classification?
Many people regard "Hold Positionsas a natural righteousness, as if just by not acting, it is not gambling. But I want to say:
"Long-term" does not automatically mean "safe" or "rational."
The real difference is never about "how long you hold," but rather: youknow what you are doing.。
Everyone can think about a few questions:
A long-term investor who blindly buys and holds a stock for five years without understanding the company, looking at Earnings Reports, or caring about the fundamentals, just because "I heard this stock is good," is that considered investment or gambling?
A short-term trader who spends time analyzing price behavior, capital games, and event-driven strategies, calculating the risk-reward ratio for each trade and setting stop-loss and take-profit orders, is that necessarily gambling?
Some people say "not using leverage is not gambling," but may I ask, is putting all your money into one stock, one industry, without diversification, not another form of 'all in'?

The AI giant Nvidia announced a 10-for-1 forward stock split in its Fiscal Q1 earnings conference call on May 22. According to a release, the shares will begin trading split-adjusted at the market open on June 10.🚀🚀🚀
Although a stock split does not change the market value of a company, it provides a wider range of investors with the opportunity to purchase shares. How do you think the market will react to NVIDIA's stock split? ...