Dao of Trading

Chapter 5: The Demon of Overconfidence



Ling Feng had overcome hesitation. He had mastered patience. He had seen the market for what it was—a living entity, flowing like water, revealing itself to those who knew how to listen. But what he did not yet realize was that the greatest test of all was not in reading the market, nor in controlling his fear, but in mastering himself.

For what follows victory is not peace, but pride.

The First Great Win

Ling Feng's confidence soared after successfully executing his first high-probability trades. His entries were sharp, his exits precise. He had waited, confirmed, and struck with perfect execution. And the market had rewarded him.

Gold.

He had never felt such power. The charts became clearer, the order flow a song he could hum along to. The Hundred Market Sect whispered his name with reverence. His peers watched in awe as he strung together win after win, growing his account faster than anyone before him.

Even Master Tian Yuan seemed pleased, offering only a knowing smile as Ling Feng continued his streak.

But beneath it all, the seeds of overconfidence were taking root.

He began trading larger sizes, convinced that his understanding of the Dao of Trading had surpassed the others. He saw the setup forming and entered early, believing he could predict the move before confirmation. He took riskier trades, thinking himself untouchable.

And then, the market turned against him.

The Fall

It started with a minor loss. Nothing to be concerned about.

Then another. Unlucky.

Then another. The market is wrong.

A setup appeared—one he would have never taken before. The POC had not shifted, the delta was still uncertain. But Ling Feng had grown too sure of himself. He saw only what he wanted to see.

He entered.

A massive sell order flooded the tape, wiping his position out in seconds.

He entered again. Another loss.

A third time. Surely the market would reverse!

Loss.

His wins, once glorious and abundant, evaporated before his eyes. The account he had grown so carefully was halved within hours. His heart pounded in his chest. How could this be happening? He had mastered the Dao, had he not? Had he not earned the right to dictate the market's movements?

And then, the voice of Master Tian Yuan cut through his despair.

The Lesson of the Abyss

"You have learned patience. You have learned execution. But you have not learned humility."

Ling Feng turned to see the old master watching him, arms folded.

"You believe yourself above the market," Tian Yuan continued. "And for that, you have been punished. The Dao of Trading does not reward arrogance. It does not bow to your will. It moves as it must."

Ling Feng fell to his knees, shame burning through him. "I thought I had mastered it. I thought—"

"You thought you could predict what must be understood. You thought your victories were your own, not merely the result of reading the market as it was given. Tell me, did you confirm your last trade?"

Ling Feng was silent.

Tian Yuan sighed. "When a trader believes he is invincible, the market humbles him. Those who do not listen, who do not respect the Dao, are cast into the abyss." He gestured toward the charts, where Ling Feng's last disastrous trades had left a trail of ruin.

"You have glimpsed the abyss, Ling Feng. Will you continue to fall, or will you rise again?"

The Path of Redemption

For three days, Ling Feng did not trade.

Instead, he meditated upon his mistakes. He replayed the reckless entries, the ignored signals, the arrogance in his decision-making. He had let his ego cloud his judgment. He had abandoned the principles that had first brought him success.

He returned to his old notes, reading the wisdom he had once embraced:

Wait for the market to reveal its intention.

Confirm before execution.

Respect the flow.

There is no certainty, only probability.

On the fourth day, he returned to the markets. But this time, he was different.

He no longer rushed. He no longer sought to prove himself. He let the market speak, and he listened. He waited for the true setup, not the one he wished to see. And when the moment came, he struck—not with arrogance, but with clarity.

The trade unfolded flawlessly.

It was not a grand win, nor a spectacular reversal. But it was correct.

And for the first time since his downfall, Ling Feng smiled.

Master Tian Yuan nodded in approval. "Good. The true master is not the one who never falls, but the one who rises after each fall—wiser, humbler, and more attuned to the Dao."

From that day forward, Ling Feng never again allowed pride to blind him. He embraced the humility of the market, knowing that the moment he forgot its lessons, he would be cast into the abyss once more.

His journey was far from over.

But now, he was ready to walk the next path.


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