To do things, you should look far ahead—and trading is the same.
Staring at the rise and fall of one or two candlesticks right in front of you makes it easy to get led around by short-term fluctuations. Make a little profit and you rush to lock it in; see a bit of floating loss and you panic into cutting. You keep going back and forth, and in the end you might not end up with much benefit.
To be honest, the short-term market is full of noise. Big surges and sharp crashes are often the result of short-term capital sparring. Today’s huge bullish candle may be swallowed up by a single bearish candle tomorrow. If you overthink today’s gains and losses, you’re likely to miss the bigger direction.
Change your perspective and look farther. Understand the environment of the larger cycle, and tell whether this is only a rebound within a phase—or whether the trend has truly opened up. Don’t let momentary temptations on the intraday chart throw you off from the plan you originally set.
And even if you look far ahead, you can’t get around risk control. A long-term mindset isn’t stubbornly holding losses, and it’s not ignoring what’s on the screen and forcing it through.
Personally, I focus on distinguishing clearly what counts as a judgment about the big direction, and what is just emotional disturbance on the short-term.
Open up your perspective, accept the ups and downs that happen along the way, and don’t let temporary wins and losses trap your mindset—because that’s what makes it easier to keep going for the long run.
Staring at the rise and fall of one or two candlesticks right in front of you makes it easy to get led around by short-term fluctuations. Make a little profit and you rush to lock it in; see a bit of floating loss and you panic into cutting. You keep going back and forth, and in the end you might not end up with much benefit.
To be honest, the short-term market is full of noise. Big surges and sharp crashes are often the result of short-term capital sparring. Today’s huge bullish candle may be swallowed up by a single bearish candle tomorrow. If you overthink today’s gains and losses, you’re likely to miss the bigger direction.
Change your perspective and look farther. Understand the environment of the larger cycle, and tell whether this is only a rebound within a phase—or whether the trend has truly opened up. Don’t let momentary temptations on the intraday chart throw you off from the plan you originally set.
And even if you look far ahead, you can’t get around risk control. A long-term mindset isn’t stubbornly holding losses, and it’s not ignoring what’s on the screen and forcing it through.
Personally, I focus on distinguishing clearly what counts as a judgment about the big direction, and what is just emotional disturbance on the short-term.
Open up your perspective, accept the ups and downs that happen along the way, and don’t let temporary wins and losses trap your mindset—because that’s what makes it easier to keep going for the long run.