Let's discuss the often mentioned macro information. In the market, we are surrounded by information and noise every day. This information is full of rumors and unconfirmed opinions, and some are even deliberately misleading information, making it difficult to distinguish the truth from the false. As Livermore said, the true situation of the market is often distorted by personal psychology. When the masses flock to a certain point of view, it may be time to retreat.

For market cognition, we look at it in three levels:

The first level: The market is full of a lot of disorganized and irrelevant discussions, which are not very helpful for actual trading decisions.

The second level: Most of the information is not the mainstream voice, but is initiated by a few people and then blindly followed by others. Therefore, we should pay less attention to this kind of information and pay more attention to charts and data.

The third level: The consensus of the market and the trend of the chart are the most critical. We need to focus on the chart analysis that matches the current market trend.

Remember, your eyes and ears may deceive you. In the financial market, real traders do not pursue absolute truth, but adapt to the changing market environment. In a bull market, good news is widely spread, stimulating people's greed; in a bear market, bad news is amplified, causing panic.

Therefore, we should stay calm, control our positions reasonably, do not operate with full positions, and be ready to respond to market fluctuations at any time. Do not let market sentiment influence your decision-making, stay rational, so that you can move forward steadily in the financial market.