The legendary woman who was reborn from the ashes
Chapter 97: Accepting the truth of the market and transcending market bias
Francis Bacon once said, "If a man begins with certainty, he will end with doubt; but if he is content to begin with doubt, he will end with certainty." This mentality is especially important for successful traders.
They are like explorers, bravely stepping into unknown areas and embracing new opportunities brought by every market fluctuation. They are willing to accept information that seems difficult to accept but is actually real, just like a brave navigator, moving forward firmly in the turbulent waves.
Their minds are flexible and adaptable, adapting to market changes like flowing water, adjusting their direction at any time, and constantly looking for new beacons.
They no longer indulge in self-woven fantasies that are inconsistent with price trends, but accept the true face of the market with an open attitude. They are willing to conform to the needs of the market, just like an excellent dancer, dancing to the rhythm of the market, showing an elegant and harmonious posture.
Yet this openness to market behavior seems to run counter to our natural human instincts. As humans, our perceptual apparatus tends to delete, distort, and generalize information in order to construct our models of the world.
We are like a stubborn painter who is only willing to use the colors and brushstrokes that he is familiar with to depict the world, but ignores the diversity and changes of the world.
We reinforce our model of the world through repeated deletions, distortions, and generalizations, like a craftsman who constantly polishes his work but forgets the true appearance of the raw materials.
We interpret the information we perceive based on our own experience, as if trying to open a door to the future with a key from the past.
This kind of prejudice exists in everyone to a greater or lesser extent. These concepts are like barriers that confine us to a small world and prevent us from seeing the wider world.
However, those who can truly transcend prejudice and embrace the truth are so rare and precious. They are like brave fighters who dare to challenge their inherent concepts and dare to accept new ideas and viewpoints.
Their thoughts are like bright stars, illuminating their own way forward and providing us with valuable inspiration.
In this era full of changes and challenges, we need to have a more open mind and clear thinking to deal with the uncertainty of the future. Learn from those successful traders, embrace the true face of the market, and accept new opportunities and challenges with an open mind.
Look at the world with a broader perspective and understand life with a deeper insight.
Everyone's identity is like a colorful painting, and every stroke is deeply influenced by faith, loyalty and history. Once we identify ourselves as a certain thinker, believer or practitioner of a certain behavior on the painting, this painting will be deeply imprinted in our hearts and will not be easily changed.
This is who we are. Every line and every color tells our story and persistence.
But in the world of trading, this persistence and perseverance is sometimes like a hidden reef, silently threatening our voyage.
When bias sneaks into trading, it is like an undercurrent, surging endlessly, silently pushing us into a dangerous abyss.
Sir John Davis once warned us: "When error blocks the windows of the soul, what can we know and what can we discern?" In daily activities, bias may be just a slight bias, but when we bring it into the field of trading, its potential threat is like a magnified mirror, reflecting endless dangers.
In the ocean of trading, the most expensive price is a closed heart and a closed door that isolates us from the real world and makes us lose wealth again and again due to repeated mistakes.
Some traders always look at the market through rose-colored glasses, seeing only the rising tide and ignoring the undercurrent risks, while others are overly pessimistic and always sell at the top of the market, even if there is still room for the market to rise.
Some traders have biases like the cycle of seasons, they firmly believe that the market will rise at the end of each year, or that the market will crash in a particular month. Others have a preference for a certain market because of past experience. They are like dancers chasing light and shadow, dancing on the stage of the market, but ignoring the traps under their feet.
There are also some traders who are so influenced by the master that they believe in the master's predictions even in the absence of evidence. They are like hypnotized spectators, guided by the master's words and ignoring the true face of the market.
However, if we can get rid of these biases, the road to trading will become broader. When we are no longer swayed by tendencies, preferences or predictions, we can see the nature of the market more clearly and gain more wealth in trading.
So, when you are at the crossroads of trading, you might as well stop and think: Is your trading affected by bias? Is your decision based on facts and evidence? If you can avoid bias, you can avoid danger and go further and more steadily on the road of trading.
In the ocean of trading, we often face various challenges, whether it is inner turmoil, external temptations, or simple confirmation of results. Sometimes, we may even unconsciously examine market dynamics with bias.
Thinking about these words - disgust, dislike, distrust, suspicion, disbelief, rejection, disappointment, disillusionment, and disbelief, these words are like fog and may affect our judgment. We must use the "compass" indicator to guide our direction in the sea of the market.
The establishment of fair indicators is crucial. It is like a lighthouse, illuminating our way forward and letting us know whether our prejudices and premonitions are tenable. Fair rules are like a sea chart, marking the trend and direction of the market and guiding us to explore the vaguely visible trading opportunities.
We need to keep tracking this indicator and make sure it matches our strategy. It can be likened to our "spiritual compass".
To further strengthen our vigilance, we can seek answers to a series of questions.
For example: “What secrets is the market telling me right now?”
“What is its language telling me?”
“What is the pulse of the market that I feel deep inside?”
“Is there a clear trend developing?”
“Where is this trend headed?”
“Where are the opportunities for longs and shorts?”
“Am I missing something important?”
“If I wasn’t involved in this deal, how would I assess what was happening in the market?”
“What are price dynamics telling me?”
“Are we seeing lower highs and lower lows, or are we seeing higher lows and higher highs?”
“Is the current price in a relatively neutral range?”
The market is a generous mentor who always provides us with immediate and long-term feedback, allowing us to understand whether our actions are truly effective.
As a trader, you must keep a clear head and respond to feedback in a timely manner. Sometimes, you may try to distort or deny the authenticity of feedback because of fear of failure, but we must understand that feedback is not failure, but necessary information for success.
When what we are doing does not achieve the expected results, we need to bravely change strategies and look for new possibilities. We should always pursue the truth and stick to pure facts. Although the truth at this moment may change in the next minute,
We must maintain a keen insight, because we are like travelers riding an express train towards the future. Only by grasping the truth of every moment can we move forward steadily in the tide of trading.
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