Empty Boat and Market: A Calm Path Through Volatility

The US military is on holiday, and the market is calm. Today, let us take this opportunity to talk about things beyond trading. The inspiration comes from a classic story in the chapter 'Mountain Trees' of the 'Zhuangzi':

'There was a person crossing a river in a boat, who suddenly noticed a boat approaching him from the front. Despite calling out multiple times to warn, the approaching boat seemed to have no response. Seeing the boat coming towards him, the person became furious and began to angrily reprimand the people on the approaching boat. However, when he discovered that the approaching boat was empty, his anger suddenly vanished without a trace.'

Reading this, one can't help but feel a sense of reflection. The world of trading is like a vast river; every price fluctuation in the market seems like a boat approaching head-on. Many people are obsessed with right and wrong within it, trying to identify the 'manipulator' or 'opponent', and often become very angry. However, the market itself is often a neutral and unbiased existence. It has no intention of 'colliding' with anyone, nor does it plan to pave a smooth path for someone. It is we who attribute intention to the market, and thus fall into internal conflicts with our own emotions. Isn't this a common state for a trader? Watching the red and green candlesticks fluctuate, thinking that there is some 'conspiracy' or 'opportunity' hidden behind, forgetting that the market is essentially just an empty boat.

Every fluctuation, whether a dramatic plunge or a wild surge, is ultimately the result of the collective actions of all participants in the market, rather than a 'collision' targeting an individual. Let go of the excessive obsession with rises and falls. 'Not competing, thus the world cannot compete with it.' The market is like a river; there is no need to always think about going against the current. Going with the trend and following the trend is the best strategy for coexisting with the market.

'Being at peace with the situation, sorrow and joy cannot intrude.' May we all treat it with a calm mind, learn to find the wisdom of the empty boat amidst fluctuations, and become the masters of our own emotions.