The Harshest 'Mantra' in Trading: No Ceiling on Rises, No Floor on Falls! In-Depth Review of the YYB Incident and Painful Lessons
The Harshest 'Mantra' in Trading: No Ceiling on Rises, No Floor on Falls! In-Depth Review of the YYB Incident and Painful Lessons
In the world of forex and commodity trading, there is a seemingly 'counterintuitive' principle that has saved countless traders: prices can rise without ceiling and fall without floor. This isn't about giving up trading—it's the harshest 'mantra' to prevent you from being driven by emotion and common sense into self-destruction during extreme markets.
Countless veteran traders' painful lessons prove: the market has no absolute top or bottom. When you think 'it can't possibly rise/fall further,' the market often slaps you hard.
No Ceiling on Rises, No Floor on Falls
This mantra must be welded into your mind. It's the outermost framework of trading, breaking all empiricism and intuition to prevent heavy counter-trend positions at 'impossible' levels.
2020 YYB Incident: Brutal Lesson of 'No Floor on Falls'
Many accept 'no ceiling on rises'—bull market euphoria pushes prices higher. But 'no floor on falls' leads countless to hold to ruin. The 2020 crude oil negative price event is the bloodiest example.
Pandemic + OPEC+ failure caused demand collapse and supply explosion. On April 21, 2020, WTI May contract settled at -37.63 USD/barrel—first negative oil price in history! Domestic YYB product flaws (wrong rollover timing, no manual stop-loss, settlement at historic low) caused over 60,000 investors to lose principal and owe banks massive debts.
'Oil has production costs—it can't go negative, right?' The market taught them: there is no absolute bottom, only lower.
Root of Fatal Mistakes
Those who held long believed in 'common sense' and 'value support.' They thought they bought the bottom—only to be crushed by the iron law of 'no floor.'
The Mantra Isn't Passivity—It's Ultimate Protection
'No ceiling, no floor' doesn't mean abandoning forecasts—it's a reminder: never fight trends with 'feeling,' 'experience,' or 'common sense.' When prices seem 'impossible to continue,' never go heavy counter-trend.
Black swans, liquidity crises, and squeezes can push prices beyond imagination. But we can still use technical tools for staged directional judgment.
Outer Framework
No ceiling, no floor. Reject empiricism, avoid counter-trend at extremes.
Inner Operation
Use price action and technical tools to find high-probability entries with strict plan execution.
Discipline Execution
Cut losses quickly when wrong, let profits run when right. Never bet on 'it can't continue.'
At FX Killer, we repeatedly emphasize this iron rule. Trainees must deeply internalize 'follow trends, not predict extremes' during simulation—this is why our pass rate is strict yet produces traders who survive long-term.
Latest News
USD/INR clings to gains as Greenback steadies on easing US-EU disputes
The Indian Rupee (INR) holds onto losses near its all-time low against the US Dollar (USD) in the opening session on Thu. Free forex trading training by FX Killer.
Australian Dollar strengthens on robust jobs data, US Dollar steady
The Australian Dollar advances against the US Dollar (USD) on Thursday, following the seasonally adjusted employment dat. Free forex trading training by FX Killer.
GBP/USD strengthens above 1.3400 as UK inflation beats forecasts
The GBP/USD pair gains ground to near 1.3435 during the early European session on Tuesday. The Pound Sterling (GBP) edge. Free forex trading training by FX Killer.
Gold moves away from record high as safe-haven demand fades on easing trade war concerns
Gold (XAU/USD) is seen extending the previous day's modest pullback from the vicinity of the $4,900 mark, or a fresh all. Free forex trading training by FX Killer.
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