In trading, there is a very common phenomenon. Many friends like to be short-selling varieties, mainly long-selling varieties. Simply put, they buy when the price is cheap and short when the price is expensive. The result is often that the more you buy, the more you fall, and the more you rise. This logic, like being born with it, affects the thinking of many futures traders. Many years ago, I acted with the same idea, believing that extremes meet. Later, I found out that I misinterpreted the wisdom of my ancestors, and my previous rough understanding was simply stupid. After reading many classics and observing the natural phenomena and details in my life, I feel glad that my thinking has changed early, guiding the later actions, and firmly believe that correct cognition can produce correct actions and results. Trading is to run through your core idea from beginning to end, which means my way is consistent.
Extremes must be reversed. On the surface, it means that things will change in the opposite direction when they go to extremes. At a deeper level, it tells us that only by observing the whole track of the evolution of things and grasping the characteristics of each stage in the evolution process can we conform to this evolution trend. It is usually a long process for things to develop to the real extreme. It is extremely difficult to catch this pole, and it is often a narrow escape. Many times, I feel that there are poles behind the poles again and again. Even if I catch the real pole, things will often experience twists and turns in the same place or even repeat for a long time at the beginning of the transformation in the opposite direction, which requires huge time and capital costs. Friends who know a little about the classic Book of Changes should know that Ganzhi hexagrams clearly tell us the evolution of things from the first hexagrams to the sixth hexagrams. The first divination told us not to use hidden dragons. Things are in the initial stage of brewing and repetition, and it is not until the fifth hexagram that they reach the stage of flying into the sky, that is, things are in the stage of vigorous development, which is equivalent to the main rising wave of a trend.