In this episode of The Philosophical Quant, Michael and Lia talk about staying calm in a wild market by using statistics, technical structure, and a selective approach. Lia is playing defense with about 40% cash and taking fewer trades, while keeping cash ready for bigger dips.

The Trading Technique of the Week is trendlines: a simple way to define the rate of change, create an entry, and know where you’re wrong. Michael uses Bitcoin to show how breaking a trendline doesn’t guarantee a moonshot, but it does signal a change in the rate of descent and creates a clean decision point.

Lia shares a real trade using a mini trendline breakout in Nokia, entering at 8.17 with a 9–10 target, explaining how she waits for the squeeze, the higher lows, and the break. They also discuss why trading is fractal across timeframes, why levels are zones (“draw with a crayon, not a pencil”), and how pros use looser language because there is no “always” in markets.

In the Mindset Minute, they talk about handling war headlines and hype by putting emotions aside and focusing on facts, numbers, charts, and what can be counted. Lia explains her “devil’s advocate” approach to filtering fear from trade decisions, why she stays away from direct oil trades, and what she prefers to be long if the market moves into recovery.

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