The market offers a price, not an instruction

Markets are useful because they offer liquidity and a constantly updated price.

The price can also create the illusion of instruction. Rising becomes evidence that we should buy. Falling becomes evidence that we should sell. The market’s mood replaces our analysis.

A price is information. It tells us what other participants are willing to accept now. It does not tell us what the asset is worth to us or whether our original reasoning remains sound.

The discipline is to use the market without allowing its emotional rhythm to use us.