A couple of days ago, the market dropped, and suddenly I became clear-headed, started to feel fear, regretted my impulsive decisions, and then sold at a loss.
What happened next? Just after selling, the market went up again.
Now I’m even more hesitant. Before, I chased the market when it was hot and bought at a high price, then sold when it dropped, and now it’s gone up again. What if I chase again and it drops?
All this anxiety stems from not understanding; not understanding leads to confusion, confusion leads to fear. Once the mind is in chaos, everything you do will just revolve around "losing money."
In Sun Tzu's Art of War, it states: "Those who reach the battlefield first and wait for the enemy are at ease; those who arrive late and rush to battle will be weary." Thus, a good warrior leads others but is not led by them.
Only when you arrive at the battlefield first and wait for the enemy can you be at ease and proactive; arriving late and hastily responding will lead to fatigue and passivity.
Investing is the same principle. Only after identifying the strength of bulls and bears can you act; for example, yesterday you recognized the weakening of bearish forces and the bulls were ready to exert strength, allowing you to enter the market before it rises.
If you can’t read the market and wait until it has risen to get entangled and anxious, you will only be passive and mentally exhausted.