The essence of trading is a contest between “movement” and “stillness.” The same is true for matter—so too for candlestick charts. When the market fluctuates, it is in motion; when it goes sideways and falls silent, it is at rest. But as long as there are participants in the market, it will never truly stop. Because the market’s direction is never determined by candlesticks; it is determined by participants’ actions. Later, with the emergence of derivatives markets, “the direction of participants” gradually evolved into “the direction of liquidity.” And trading, at its core, is judging where liquidity will flow.

Volume is the most direct indicator for observing liquidity. When volume contracts, it means liquidity shifts from dynamic to static: bulls and bears have grown tired, and the market enters a resting phase. When volume expands, it means the rest is over and a new round of contention begins again. The market is always: contention → consumption → silence → contention again.

But the truly important question is this: how, at the moment when “the war starts again,” do you find a better point to enter? I have always believed that every trade is like a war. The first goal of trading is not to get rich quickly, but to stay alive. After you can stay alive, only then does it become possible for assets to continue growing steadily and positively.

Stable profitability is actually both extremely difficult and extremely simple. First, you must accept losses. No trader can be right forever, but a mature trader definitely knows how to control drawdowns. When you reach your stop-loss line, you must exit. After the stop-loss, you must also review: was the entry timing wrong? Did you ignore the macro environment? Or was it a technical contrarian action taken against the trend?

A high-quality trade must have “the right timing, the right location, and alignment with market consensus.” The right timing is choosing the moment. Going long is not about chasing after an increase; it’s about observing when the shorts begin to weaken. Shorting is the same. The right location is your position. Is there a key support below? Is there capital standing behind it? Or are you truly fighting alone? Alignment with market consensus is whether your direction can be supported by more funds and more participants pushing it.

In fact, most people have never truly understood why they end up making profits or losing money. Therefore, a mature trader must maintain long-term self-reflection. The first step of self-reflection is to know yourself. Watch every impulse and urge that stirs within you. Turn inward—does your mind have that mind? Look outward—does your form have that form? Ultimately, attain emptiness and keep stillness steadfastly. Then, return to your position.

How much capital do you have? How much drawdown can you truly withstand? In this trade, what is the worst you could lose? And what is the best you could possibly earn? When most people enter the market, what they think about is: “How much money can I make on this trade?” “How many times can I multiply?” But very often, that is just a fantasy manufactured by desire.

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