Here’s something that hits close to home: If you’re holding long positions, when the price drops you call it a pullback; if you’re holding short positions, when the price drops you call it a crash.

Your positions will hijack your judgment. People who are long see nothing but good news, while people who are short see everything as a sign of an impending collapse. Only when you’re truly flat do you have a clear mind and can look at the market without any bias.

Right now, I just play short-term swings. Every time after closing a position, whether I made a profit or a loss, I hold back and don’t rush into a new trade. I have to stop and observe for a while to cool off. What I fear most is letting emotions take over—getting excited and going all-in recklessly, that’s just a way to lose money.

When it comes to trading, mindset is much more important than technique.