Wood feeds Fire, Fire creates Earth (ash), Earth bears Metal, Metal carries Water, Water nourishes Wood. In market terms this maps to sector rotation and capital flows: one sector's strength generates the next sector's opportunity. Watching which element is 'feeding' which helps you anticipate rotation instead of chasing it.
Wood parts Earth, Earth dams Water, Water quenches Fire, Fire melts Metal, Metal cuts Wood. This is the risk layer: every strength has a natural counter-force. A red-hot sector (Fire) will eventually meet liquidity withdrawal (Water). Knowing the controlling cycle keeps you from treating a trend as eternal.
Assign each position an element; track which elements dominate your book. Too much Fire (speculation) and one Water event (liquidity shock) hurts; balance with Earth (defensive value) and Metal (quality cash flow). It is a mnemonic, but a powerful one — portfolio balance you can actually feel.
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