[Red Envelope] Stock Market Mindset, a Fatal Blow!

Hello everyone, I am Brother Trend, focused on leading trends and adept at capturing logic. The logic remains eternal, and the trend never stops [Taogu Ba].

What I lose is not truly mine, and what I seek is often hindered by circumstances.

In the stock market, holding a vacant position means not holding any stocks. The mindset varies from person to person and mainly depends on individual investment strategies, risk preferences, and market trend judgments.

Overall, the mindset of holding a vacant position is reflected in the following aspects:

‌Risk avoidance with composure‌: Some investors choose to hold a vacant position to avoid market downturn risks.

For example, exiting at high points can successfully avoid subsequent adjustments, keep funds safe, and maintain a calmer mindset. They pursue “earning only what they understand,” not aiming to buy at the lowest or sell at the highest, but patiently waiting for the next more certain investment opportunity.‌

‌Anxiety and regret over missing out‌: For investors who are long-term vacant due to waiting for market declines, if the market continues to oscillate upward, they may experience a sense of “missing out,” meaning they missed the rally. This mindset can easily evolve into anxiety, regret, and hesitation, worrying that waiting longer will only make the price higher, ultimately making them less willing to enter the market, falling into the dilemma of “wanting to buy but afraid to buy.”‌

‌Emotional numbness and avoidance‌: When the market continues to rise and they have been long-term vacant, investors may develop negative emotions due to cognitive dissonance (their decisions not aligning with market trends). To reduce this discomfort, some choose to avoid paying attention to market dynamics, showing emotional numbness or indifference, which may further impair their ability to capture future opportunities.‌

‌Proactive calmness in vacant positions‌: Some investors see holding a vacant position as a proactive, positive state. They believe that not holding stocks allows them to stay calm, avoid being swept up by market volatility, and reduce psychological stress and emotional exhaustion caused by frequent trading. For them, holding a vacant position is a discipline, a way to control human weaknesses (such as greed and fear), bringing inner peace.‌

‌Opportunity cost consideration‌: Holding a vacant position means giving up potential gains from market rises but also avoiding losses. Investors need to weigh “missing opportunities” against “avoiding major losses.” Data shows that a long-term full-position strategy yields higher annualized returns but with large fluctuations; timing-based vacant strategies are theoretically lower risk, but maintaining precise timing in practice is extremely difficult.‌

In summary, the mindset of holding a vacant position is neither purely “good” nor “bad,” but complex and dynamic. It may stem from rational risk control or irrational fear or numbness. The key is whether investors have a clear investment strategy, defined entry criteria, and can effectively manage their emotions, preventing their mindset from becoming a stumbling block in decision-making.

Poor emotional management has led to many recent setbacks. Although some opportunities have been seized, the overall trend is irreversible.

Trading is never perfect; there will be highs and inevitable lows.

Knowing this, but having an unstable mindset at this moment is the most frightening.

On Monday, focus on Zhongwu Gaoxin, continue to watch Lixing Shares, pay attention to China Xidian, and follow Yingxin Development. No stop-loss was set; although Zhongwu Gaoxin and Yingxin Development are still under construction, they couldn’t withstand Lixing and Xidian’s adjustments. Finally, I reluctantly unfollowed on Wednesday.

On Tuesday, focus on Blue Focus and Dagang Shares. On Wednesday, I took profits at the red plate and unfollowed, but unexpectedly, they quickly recovered on Thursday.

The main logic revolves around AI and semiconductors.

On Wednesday, focus on Hongbaoli, Hongqiang, Jiangtian Chemical, following the logic of chemical price increases. Jiangtian didn’t break through the 5-day moving average, so I unfollowed on Thursday.

On Thursday, focus on Mingtai Aluminum. On Friday, I unfollowed all and took a break!

The market is really poor. Many friends say they haven’t done well. Today, I won’t talk about the market; just a casual chat with brothers: a practical guide to facing adversity.

Dear friends, I understand you’re going through tough times. I can feel the pressure and confusion inside you. Adversity is indeed one of the most challenging moments in life, but also the fastest stage of growth.

Sharing some practical coping strategies:

1. Accept reality and adjust your mindset

You can first admit, “I am indeed facing difficulties right now,” rather than resisting this fact. For example, if you suddenly lose your job, tell yourself: “Yes, I am unemployed now. It’s tough, but I have the ability to get through this period.”

2. Break down problems and solve them step by step

Divide big problems into smaller steps. For example, if you owe 100,000 yuan, instead of being overwhelmed by the total, list all debts and create a monthly repayment plan. Even paying 1,000 yuan per month is progress.

3. Build a support system

Proactively contact 3-5 trusted people and clearly tell them what kind of help you need. For example: “I need someone to walk and chat with this week. Are you free on Wednesday afternoon?” Specific requests are more effective than vague help-seeking.

4. Maintain basic daily routines

Even if feeling down, stick to daily habits:

1. Wake up at 7 am

2. Eat a nutritious breakfast

3. Spend 15 minutes outdoors

These small habits can stabilize your mind and body.

The stock market is the same—there’s no perfection. Keep a calm mindset, wait for the right opportunity, and start over!

That’s my personal understanding. I hope it helps brothers and sisters!

Thanks to the brothers who have always supported me: @KuaHua23 @VoidMiao @LittleBearRun @LiuYunGatherAndDisperse @ShunXinShunYiShunFuxing @KangXianShiShang @WalkingFlyingFish2 @ZhuangZhou炒牛 @QianNiuKanXi @MuKong @MyLeisureTime @TaoTao257 @FangShiNei @eatearl @OnlyForThatMoment @WinterComesSpringNotFar @LearnAndApply @SeaStream @LearnAndApply @bull001 @JingQingBingDing @LongChina @LiuYunGatherAndDisperse @ZhuangZhou炒牛 @DistantMirage @FearlessCloudCover @LiLuan @NaturalLawFlow @QianNiliCaoDXL @YearlySail etc.

Now I am fully focused on trading, so I post less. Opportunity and trend brothers will share their views daily in comment posts!

Good opportunities will be announced in the comments, such as Kangqiang, Shenghui, Hongbaoli, Hongqiang performed well last week!