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Today I looked at my life’s “K-line chart” and suddenly felt a wave of emotion. This is essentially the same as the discipline we pursue in the market.
In trading, we tend to overrespect the upward trend while underestimating the downward movement. Our instincts drive us to quickly add positions, chase profits, and mistakenly assume that good luck will continue; but when facing risks, we are extremely slow to de-risk and refuse to admit that market conditions have changed.
The root of this mistake lies in human greed. Most liquidations are not caused by poor trading ideas, but by our greed extending beyond what the market allows.
This also extends to our understanding of patience: a common mistake we make is trading too quickly with DCA or 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 mean inactivity in market awareness.