Midday Chat $BTC
Last night, I believe many people made money, and many others regretted missing the opportunity to short and buy spot at a low point. Of course, a considerable number of people were also wiped out; reality is that cruel. The market does not give us the opportunity to regret and start over; knowing in advance is priceless.
Recently, a teacher said something very good that is suitable for trading: widely spread is: when the direction is wrong, the more knowledge one has, the more reactionary it becomes; there is also a saying online that the original text is: when the route is wrong, the more knowledge one has, the more reactionary it becomes; but I have searched through the Selected Works of Mao and literature, and found nothing. However, in 1970, in a discussion on genius theory, it was mentioned: I mainly talk about route issues; if the route is correct, everything follows; if the route is wrong, it will collapse. When the route is right, there will be fewer people; if there are no guns, there will be guns, and there will also be power; when the route is wrong, no matter how many people or guns there are, it is useless.
I share these few sentences not to discuss which is the original wording, but to say that in our trading, when judging: subjective and objective; relative and absolute; sideways to trend; trend to sideways; major trends and minor trends; how minor trends drive major trends and convert them. The causes are multi-dimensional and multi-factorial.
When we trade ourselves, the direction must be clear; no direction means no trading. Once there is a direction, entry points will arise, followed by stop losses. If we hit a stop loss, it indicates that our direction or entry point is wrong. But a mistake is a mistake. Many liquidations and holding positions are just due to a wrong direction, attempting to validate this so-called wrong direction using much of the knowledge learned and heard, which ultimately determines the final outcome.
Back to the trend, there is no direction in 1H and below, mainly sideways fluctuations. It's best to pause, with a range between 1500-2000 points. In smaller cycles and segments, light positions can be played with, but stop losses must be well managed.
