Why can you hold on to long positions, but when the market reaches a main decline, you can't hold on to short positions as soon as you encounter a rebound? From the underlying logic, if you attract funds from the right side of the market and go up, the retracement will be strong and will not give low positions. Conversely, if you distribute the right side of the market and go down the main trend, the rebound will be weak and will not give high points to short positions. I understand the reason, but why do I involuntarily raise the rebound price when it rebounds? 1、 Bottom level logic: cognitive dissonance during short selling 1. Human biology tends towards an upward trend in the world, The real world we live in is' rising ': income growth, asset appreciation, rising housing prices, rising prices... so your subconscious brain believes that' rising=normal 'and' falling=abnormal '. When the price rebounds, the brain will automatically apply the "return to normal" pattern, creating the illusion of "take profit, don't go against the trend". This is a biological deviation against human nature, not that you lack discipline. 2. Visual misguidance: speed and strength of rebound A， In an upward trend, the visual inertia illusion is prone to pulling back when stepping back, and the brain establishes a template of "rebound with inertia". So when the trend reverses into a main decline, the brain still uses the old template and defaults to a rebound of "at least to the top high or 0.618". As a result, during the main decline, the market rebound often only reaches 0.236 or 0.382, and you may visually feel that 'this rebound is too shallow and cannot end', thus overestimating it. Simply put, you see the rebound of bears with the eyes of the bull era. B， Price acceleration misjudgment: In the main downtrend, the rebound is usually short and steep (short covering+liquidity gap). This short-term steep angle will cause the visual system to automatically extrapolate: 'Since these K-lines are so strong, they should still be able to go up.'. ”In fact, a steep angle does not mean a large space, most of them are just short-term short positions that are immediately swallowed up by a new round of selling pressure after being replenished. That is, the rebound speed is fast → it is considered that there is a large rebound space, but the two are not necessarily related. 3. Asymmetric structure of attracting and distributing funds. During the attracting stage, the main force spends time building positions → shaking → false breakthroughs → real trends → stable trends. During the distributing stage, the main force is impatient → rapidly rising → smashing the market → main decline → short-term rebound → so the market on the right side of attracting funds is stable, while the market on the right side of distributing funds is chaotic. When you short on the right side, you are essentially fighting against "emotional fluctuations" rather than price fluctuations. 2、 Psychological layer: Why do 'rebounds' look higher 1. Loss aversion+short-term memory The profit from short selling is a floating profit. When there is a rebound, the floating profit returns, and the brain defaults to "protecting returns">"letting profits run", so you will reflexively want to take profits. In fact, you are not analyzing the strength of the rebound, you are avoiding the emotional pain of the pullback. 2. Anchoring effect Once you short at a certain price, your brain automatically establishes an anchor point: 'Below the opening price=right, above the opening price=wrong'. When the price rebounds and approaches the opening price, the brain will release anxiety signals, forcing you to close the position. So what you see as' higher 'is not the result of analysis, but rather a subconscious effort to defend face. 3. The conflict between trend direction and human nature direction. Going long follows the hope of human nature, while going short follows the fear of human nature. Fear can make you act faster, but it can also make you end earlier. Therefore, 'being able to hold onto long positions and not being able to hold onto short positions' is a natural manifestation of human nature under different emotional systems. 3、 Solution: Dual layer correction of mind and strategy Mental layer: counterintuitive training to eliminate rebound fear: After each short sale, do not look at profits or losses, only focus on structure: during the main decline stage, draw a "rebound dead zone" and tell yourself that only structural damage can take profits. Reshaping the 'normal view': Repeated reminder: 'Rising is unexpected, rebounding is a trap' (in the main downtrend cycle). Write it on the screen. Delayed response mechanism: Set automatic take profit and stop loss, do not manually intervene during rebound, let the system help you "cool down emotions". On the practical level, the correct approach to short selling like attracting funds is not to treat distribution as attracting funds, but to use the patience and discipline of attracting funds to operate distribution. Part that can be learned from (mentality and rhythm) LPSY=BU-LPS for attracting funds → You need to "go short after confirming the rebound" at the LPSY position, just like "buying on the right side of attracting funds". Not blindly empty, but waiting for the rebound to fail. Change 'buy in fear' to 'empty in hope'. When there is a strong rebound in the market that appears to be a reversal, you need to train yourself: that is the moment when others' hope reignites - it happens to be the perfect opportunity zone for distribution. After confirming the structure, patiently hold and attract funds. If you hold a position, the trend will explode; Distribution in progress, your position and other trends are accelerating. Both are 'right-handed holdings', but in the opposite direction. Actual strategy framework: Distribution=Fundraising mirror operation So: you can observe the pace of distribution like watching a lottery, but the operational logic must still follow the rhythm of the main downward trend: do not predict the rebound height; Not fantasizing about getting higher again; Only operate confirmatory structures. The rebound in the main downtrend is not to make you comfortably short to a high, but to wash away those who want to be too short. Going long is the art of faith, going short is the art of skepticism. Beliefs are easy to establish, doubts are difficult to control. What you need to do is not eliminate doubt, but use structure to tame doubt