The trading methods for breakout and consolidation may seem similar, but the underlying trading logic is completely different.
If you judge it as a ranging consolidation, then you should keep a principle in mind: take small profits and exit when it's good. Take a little and run, don't be greedy. Because ranging markets are inherently full of reversals, trying to earn a few more points within a range often results in being slapped back.
But if you confirm it's a trending market, you should change your mindset. At this point, you need to be more magnanimous; don't rush to exit at the first sign of a gain. Making a small profit isn't worth risking; you need to give the trend enough space to complete its cycle. The key is patience—many people give up their profits actively in trending markets.
The core is: identify the market attribute, then trade with the corresponding mindset.
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PhantomHunter
· 2025-12-21 09:02
You're absolutely right, the key is not to be greedy. I had a loss during a fluctuation before, trying to earn a few more points but ended up getting Reverse hammered, a Rekt lesson.
The trading methods for breakout and consolidation may seem similar, but the underlying trading logic is completely different.
If you judge it as a ranging consolidation, then you should keep a principle in mind: take small profits and exit when it's good. Take a little and run, don't be greedy. Because ranging markets are inherently full of reversals, trying to earn a few more points within a range often results in being slapped back.
But if you confirm it's a trending market, you should change your mindset. At this point, you need to be more magnanimous; don't rush to exit at the first sign of a gain. Making a small profit isn't worth risking; you need to give the trend enough space to complete its cycle. The key is patience—many people give up their profits actively in trending markets.
The core is: identify the market attribute, then trade with the corresponding mindset.