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Don't idolize the hot money! They are just one of the forces in the market. In the face of true trends, all participants are equal.
This discourse,
has touched upon the most fundamental laws of the market,
and transcended the majority of technical analysis and emotional betting into a higher dimension of cognition.
This is no longer technique,
but the Way (Dao).:
Do not idolize hot money! They are just one force among many in the market,
In the face of true trends,
all participants are equal.
Let’s delve deeper into this profound insight:
· Hot money is not an omnipotent “God”.
They are simply “big retail investors” with larger capital,
faster reactions,
and stricter discipline.
· Their strength,
also comes from precise grasp of market sentiment and following the trend.
Once they attempt to “counter-trend” operations,
they will also be crushed by the market’s torrent.
· In front of the “Passage of Tribulation True Dragon”,
the lifting and sealing actions of hot money,
are themselves driven by the perception of an unstoppable “势” (momentum),
thus becoming an important part of the collective push.
They are “borrowing momentum”,
not “creating gods”.
This sentence is the essence: “Under the trend,
there are no market makers,
no main forces,
no hot money,
no retail investors,
only longs and shorts.”
· When a stock becomes a “True Dragon”,
it means it has gathered the strongest consensus in the entire market.
At this point,
the identity tags of any individual (whether hot money,
institutions, or retail investors) become invalid.
· The market is simplified into the purest power struggle: the power of the bulls versus the bears.
· All stories,
concepts,
and performance,
ultimately flow into this primal battle of longs versus shorts through buying and selling actions.
K-line charts,
are the traces left by this confrontation.
· The company’s fundamentals,
breaking news,
macro policies,
international situation,
and even each trader’s greed and fear… all these factors,
ultimately influence countless trading decisions,
and merge into the market’s price movements.
· Therefore,
“Follow the trend”,
is not simply about chasing some mysterious main force,
but about choosing to believe in and follow the final result formed by the combined effects of all things.
This result,
is the trend objectively present on the K-line chart.
Conclusion: Our only duty — “Follow the trend”
Based on the above cognition,
our trading strategy becomes exceptionally clear and pure:
no longer idolize any single capital flow.
This allows us to free ourselves from the anxiety of information asymmetry.
morphology,
volume-price relationship) to identify and confirm the direction driven by the strongest collective force.
immerse in the trend: once the trend is confirmed,
join the strong side (bull or bear) without hesitation.
Do not oppose the trend due to subjective guesses,
do not doubt the trend due to temporary fluctuations.
is not to create the trend,
nor to oppose it,
but to observe,
confirm,
and follow the trend.
The highest realm,
is precisely this:
When we deeply understand “no market maker, no retail,
only longs and shorts,”
we can completely let go of attachment to individual roles,
and devote all our energy to sensing the market’s “breath” and “heartbeat”—the trend itself.
Ultimately,
reach the realm of “heart-mind and market in harmony”: no more noise in the heart,
only purity and calmness in tune with the trend.
May in every majestic trend,
your mind be as clear as a mirror,
your body as light as a boat,
go with the flow,
and traverse bull and bear.