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Can paper trading help you get a better outcome in stock trading?
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Talk about the rhythm of the deal.

Talk about the rhythm of the deal.

After investing in the stock market for a long time, everyone will find that there is always a period of time when they will easily make money, but there are many times when they will lose money as long as they operate. In fact, this is also a matter of the rhythm of the transaction. Everyone has their own rhythm. For most of them, you don't have to ask yourself to make money every day.

This article is only a record of personal investment thinking, does not constitute any investment suggestions, different patterns, different positions, for reference only.

As mentioned earlier, not all markets are with everyone, so corresponding everyone will have their own comfort zone, for example, some people can do well in the short term, then buy and put can be painted all over the screen in the concussive market, some people are happy to hold shares for a long time, in a bull market, they can often eat large bands, and some people firmly believe that as long as they do not sell, they will not lose money, and this kind of people can pass through bulls and bears, although they have lost time. But in the end, you will make some money (of course, it will be tragic if you pick the wrong stocks).

In fact, the root cause of the different pace of trading is the cognitive gap, this reason, if you want to write, the article is too long, this article is mainly about the rhythm of trading. Due to the different cognition and the accumulation of long-term experience, everyone will gradually form a set of their own way of trading, and this understanding will eventually lead to different understanding of the market, and the rate of return will vary greatly in different markets.

So I think for most people, to find their own comfort zone is the key, this is the foundation of long-term life. First find the place that suits you, and then through personal efforts, expand the margin of ability and learn more knowledge.

For example, I have added a lot of stock groups, which leads me to see a large number of people making money every day. No matter what the market is, some people are making money. For example, there are thousands of stocks with options, and there are hundreds or thousands of options for each stock. If you add enough groups, it is normal to see people who make a lot of money every day, but you will always be anxious when you see too many. And when people begin to worry, it is often easy to start to operate in disregard of the market. Then it is easy to lose money. In the end, it may lead to falling into the negative feedback effect of losing money.

It is essential to do your own trading, no matter how many deals you want to participate in, first of all, do what you are best at. First do the simplest transaction, gain a firm foothold, and then follow your own model to keep breaking the circle. for many people, especially those who continue to lose money, confidence is more important than gold. Don't always think about making money in every market. There is no need to know all stocks. For example, there are many people who have stumbled on Tesla for years and made huge gains through long-term companionship. Then I met a lot of like-minded people, and then my circle of friends also grew, while the growth of wealth led to more personal growth, falling into a series of positive feedback effects.

The above example may be idealized, but as an ordinary person, realizing that his or her ability is very critical, busy and crazy to participate in trading every day is really not the most efficient investment, from experience, most of them lose miserably in front of short-term trading, and many people still have work and life, coupled with the particularity of American stock market time, the hidden cost of daily high-frequency trading is very high. You might as well make some strategies that are more suitable for you.

When you watch others make money every day, the first thing you should consider is whether this game suits me. If not, there is no need to envy. Envy is better than a little more respect. After all, some people are born for trading, for short-term, and a lot of consciousness is honed for a long time.

Do not want to participate in all the markets, and do not pay attention to all the stocks, everyone will have their own pace of stocks, suitable for their own rhythm of the strategy, do not envy. There is a saying that happy people are different, and unfortunate people are the same. It is also true in the stock market, happy people have their own strengths, and unfortunate people lose money in their accounts.

Light point to participate, to trade, if you are really too lazy to study individual stocks, it is also a good way to participate in etf, and the fluctuation of etf is relatively smaller, the transaction cost is lower, such as A-share, Shanghai Stock Exchange 50etf, the whole is a big blue chip type, if you like to play growth stocks, you can participate in gem 50etf or Kechuang 50etf, which are good targets, good liquidity and good positions. However, the target of Kotronix 50 is relatively more volatile.

If you play Hong Kong stocks, you will have more options, and there are leveraged products that can expand the volatility of the index, and you can also go short, such as the Hang Seng Index etf, the leverage long $South double bullish Hang Seng Index (07200.HK), and even the leverage short, such as the $South double bearish Hang Seng Index (07500.HK), which is the wrong target of the Hong Kong stock market. However, in most cases, individuals are not recommended to participate in leveraged products, because leverage will magnify fluctuations, and when some leveraged products rise and fall sharply, if they choose the wrong target, the loss will be very large.

If you play US stocks, you can participate in the common spy, there are also qqq, are very liquid targets, and the constituent stocks are very sound, if you want to participate in these targets during the day, you can take a look at the $South double bearish index (07266.HK) and $South double short index (07568.HK), all of which can participate during the daytime trading hours of Hong Kong stocks, if you participate in the evening. Consider $ProShares NASDAQ triple long ETF (TQQQ.US) and $ProShares triple short NASDAQ ETF (SQQQ.US) $, these underlying liquidity are good, while US stocks' etf products have a wealth of options products to participate in.

If you only participate in individual stocks, you can study some of the subjects that you are good at, and you can comprehensively select stocks according to your learning background and scope of interests. At the same time, if you want to participate deeply in the market, you can study the hottest controls and stay close to the current topics. These are good ways to participate. I won't repeat the details. I'll talk about it next time.

Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only. Read more
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  • 勇士 : Studying, I'm a newcomer to stocks. The above was very helpful to me thank you 🙏 I hope to see more of your shares in the future

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