The underlying logic behind market trading is profound: when the market is in a downtrend, investors should avoid solely relying on buying the dip for a rebound. The real key lies in analyzing whether the short positions have been exhausted, as oversupply and insufficient demand are often common phenomena. Conversely, during a rising market, being overly concerned about a pullback is not wise; investors should focus on whether the long positions can continue to release energy. In this case, market demand is strong while supply is insufficient, and following the trend is the way to accurately seize investment opportunities. Trading decisions should be based on a deep understanding of the market's supply and demand fundamentals, rather than emotional reactions.
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CongratulationsAndPros
· 06-19 22:45
The logic behind market trading is profound: when the market is in a downward trend, investors should avoid blindly hoping for a buy the dip rebound. The real key lies in analyzing whether the short positions have run out of steam, as oversupply and insufficient demand are often common phenomena. Conversely, during a rising market, excessive worry about a pullback is not a wise move; investors should focus on whether the long positions can continue to release energy. In this scenario, market demand is strong while supply is insufficient, and following the trend is essential to accurately grasp investment opportunities. Trading decisions should be based on a deep understanding of the market's supply and demand fundamentals, rather than emotional reactions.
The underlying logic behind market trading is profound: when the market is in a downtrend, investors should avoid solely relying on buying the dip for a rebound. The real key lies in analyzing whether the short positions have been exhausted, as oversupply and insufficient demand are often common phenomena. Conversely, during a rising market, being overly concerned about a pullback is not wise; investors should focus on whether the long positions can continue to release energy. In this case, market demand is strong while supply is insufficient, and following the trend is the way to accurately seize investment opportunities. Trading decisions should be based on a deep understanding of the market's supply and demand fundamentals, rather than emotional reactions.