Trading Insights

Going long will make you unable to resist buying, going short will make you unable to resist shorting, and holding positions will make you unable to resist adding. Any direction is not the problem; the issue is the frequency. "There are too many temptations in the market, both bullish and bearish, and they all seem 'quite reasonable.'" Today you want to bottom fish, tomorrow you want to short, next week you think your original position should be increased... Over time, you're no longer waiting for opportunities but responding to stimuli. The true core is not whether you're long or short, nor whether your judgment is correct, but—whether you can withstand the temptations that seem promising but are actually just noise. Opportunities are few, impulses are many. This reminds me of a classic story from Livermore. After going bankrupt, he almost did nothing, avoided everything, and waited a long time—until the market truly presented a structural big opportunity, he re-entered heavily in the Bethlehem Steel battle (interested friends can look up Livermore's Bethlehem Steel Battle, a very impressive turnaround). Others think his secret to rebirth was "that judgment was correct," but he said himself: "I won because I could wait." He didn't jump in whenever he felt like trading; he only traded when he had to. This is the approach of a master: >> Not acting every day, but acting at critical moments. >> Not constantly seeking opportunities, but letting opportunities come to you. >> Not doing more is better, but doing less is more accurate. Whether bullish, bearish, or holding positions, human nature gradually increases the frequency of actions, making your trades more chaotic and scattered. When a good opportunity finally arrives, you may have already lost your edge. So, the essence of the logic is actually just one sentence: The truly successful are not those with the strongest judgment, but those who can endure. Trade less, but each move is valuable.