The retreat from handwork has long been considered a difficult task

It’s easy for men and women to stick together, but when it comes to parting ways, a lot of energy is required. The same goes for the market: forming a position is easy, closing it is hard. Whether in unrealized gains or losses, making a decision is difficult—in a sense, an eternal theme.

When you expect price to rise and buy, but the price movement is weak…

It’s a so-called bad position, so you have no choice but to cut it. But the moment you cut it, the appeal of being "released from risk and able to face the next round" is weaker than the unpleasant feeling of "loss is confirmed" and "admitting your mistake."

After buying, it rose splendidly…

It's a wonderful situation. You can lock in profit any time you sell. But the moment you take profits and close, you throw away the possibility that the price could rise further and profits could extend. In other words, it’s like breaking up with a very close partner right before Christmas, and you feel resistance again.

When you’re not experienced with trading, you should devote yourself to early closure.

After you enter with confidence, the top priority is to close quickly and surely, completing the cycle of "entering → closing." You can control the timing of closing, but you cannot control whether it’s profit or loss.

Then, after you gain experience, you should start to "extend profits"—that is the correct order.

Even with ample experience, when you handle new methods or new countermeasures, you should think in the same way.

Now, even people with ample experience, and even those who are accustomed to the methods, human emotions remain the same. You feel resistance to cutting losses, and closing profits invites even more confusion.

In this regard, the Zhongxian (Chung-Sold) approach to mechanically judging price movements provides a clear answer, which is helpful. It ends by indicating the "brand" or the "entry time"… a stark contrast to the irresponsible information scattered around, and, more fundamentally, it is a properly organized "investment method" and "trading technique."

While that mechanical judgment can sometimes backfire and not function, it also handles moderate fluctuations as expected, and its strength lies in stubbornly following through when large price moves occur.

Cut the bad positions, leave the good positions to ride until the trend becomes uncertain to extend profits—that is the core trading philosophy behind Zhongxian’s approach.

In the second part, page 22 of the new edition of "Chung-Sen Line Positioning Method," it says the following.

“Even the long-standing difficult issue of closing out is defined.”

Even if you leave the house, you will return by evening or night. If you climb a mountain, you will certainly descend.

The same logic applies: taking a position after considering closing out is natural, but since careless forecast information is spreading, I explicitly explain that it is “defined.”

If you go step by step and organize your thoughts, the problem of closing should be resolved.

You can’t create a state of “perfect hits,” but you can act without hesitation. On the broadcast of January 16 (Market Scramble), we addressed such pressing questions and explained the simple philosophy behind Zhongxian.

The broadcast video, as well as follow-up blogs (every Monday from January 23), are free to view.

This pagesummarizes everything, so please take a look.