Position allocation can directly reflect your true expectations. When the market goes down, do you breathe a sigh of relief? This indicates that your holdings are too full, and you're eager to find an opportunity to escape. Conversely, constantly buying the dip but not daring to hold a heavy position shows a lack of confidence in the future market.

Interestingly, your expectations precisely reveal your level of risk exposure. Those with very light holdings hope for a decline, because only then can they add to their positions; those with heavy holdings hope for a rise, because only a rally can help them break even or cash out. Both mindsets send a market signal — your allocation is problematic.

What is the state of a truly calm trader? They can accept both rises and falls because their position allocation has been planned long ago. No matter how the market moves, their risk exposure is within control. So instead of guessing the direction of the next K-line, ask yourself: with this current position, do I really sleep soundly?