There has been a lot of market news recently, and the price action goes up and down in a way that’s especially exciting. It’s really a case of the bold eating the meat, while the timid watch others eat the meat. But being bold isn’t about charging blindly; the key is to not chase rallies or sell off at the lows, otherwise it’s very easy to get trapped.



When the market is rising, don’t let your head run hot and rush in to follow the crowd—once you chase, you’ll easily end up buying at the high point, and get locked in. When the market is falling, don’t panic and slice your losses in a hurry—the more you cut, the more you lose; and what could have been able to get you back out of trouble also gets messed up by your own fussing.

To get out of trouble, you need to keep your composure, don’t let the market drag you along. Don’t be impulsive, don’t act blindly; gradually trade the price differences, control your position size, and stabilize your mindset. The orders that are trapped in there will come out sooner or later. Remember: not messing around recklessly is the best way to get out of trouble.

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