Following the trend is actually the most effortless and simplest approach. Going against the market carries the biggest risk: once the trend is underway, that burst of momentum is hard to dissipate immediately. If you end up on the other side, each continued move in the price will cause the numbers in your account to shrink. In case you’ve misread the direction and the market doesn’t turn back for a long time, the exit defenses you set in advance may be breached again and again. Those small account/value shrinkages add up—accumulating into something that can be really painful, and it can also easily wreck your mindset.



After a trend takes shape, it’s like a massive giant ship fully loaded with cargo—turning around right away is almost impossible. It needs to slow down first, then gradually change course. The market is the same: without a period of back-and-forth tug-of-war and adequate give-and-take, it’s hard for it to reverse with direct force. Those who rush to buy during a decline, all hoping to catch the exact lowest price, are basically not believing in the simple principle that “a big ship is hard to turn.” Their minds are filled with fantasies that “a rebound is coming soon,” yet they ignore the reality that the market is still weakening.

What’s worse is that many people always want to capture that turning point perfectly, believing they have the ability to get out unscathed right before risk arrives. This is an overestimation of their ability to avoid risk; in the final analysis, it’s greed at work. They always want to guess its turning point in advance, always want to move one step ahead of everyone else—ultimately, this is often where things start going wrong.

We can try a different way of thinking: actively let go of this greed for anticipating early. Wait patiently for the trend itself to produce a clear reversal signal—such as when it stops making lower lows and the price begins to rise gradually. Only then do we step in. Riding along with this momentum is like hopping onto a train that’s already moving with the wind behind it—the train’s own speed provides you with a protective cushion. Even if you enter a little late, the continuation of the trend will help you absorb a good deal of the pressure. Conversely, if you insist on going against it, any small fluctuation could throw you into panic.

By following the bigger direction, the likelihood of repeated setbacks drops dramatically, and the entire trading process becomes more composed and more stable. This is the wisdom of turning risk control from complicated to simple.

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