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Today I looked at the "K-line chart" of my life and suddenly felt a wave of emotion; this is essentially the same as the discipline we pursue in the market.
In trading, we often overly respect the ups while underestimating the downs. Our instincts drive us to quickly increase our positions and chase profits, mistakenly presuming that good fortune will last; yet when faced with risks, we are extremely slow to de-risk, refusing to acknowledge that market conditions have changed.
The root of this error lies in the greed of human nature. Most liquidations do not stem from poor trading ideas, but rather from our greed lasting longer than the market allows.
This also extends to our understanding of patience: a common mistake we make is DCAing too quickly or trading out of boredom. When the market is dull, true discipline is to stop executing trades and focus on observing the movements of smart money and the formation of potential narratives. Inactivity in execution does not equate to inactivity in market awareness.
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