The wrong perception of the market by retail investors ⚠️
I have been watching the comments section for a long time and found that most retail investors believe that there are reasons for the rise and fall of the stock market, so they continuously explore the news events behind the stock market and use this as the main basis for judging transactions.
This is a huge mistake ❗️❗️❗️
In fact, the market is a chaotic body with no rules. You can guess the market, but you can't predict it. There is no absolute basis for any behavior in the market. As a trader, you should not pursue its certainty; instead, you should objectively analyze probabilities and place bets on different probabilities to calculate profit and loss ratios.
In addition to reading news and trading stocks, there are also erroneous acts such as pursuing the certainty of indicators (such as RSI, MACD) and trying to predict market behavior through indicators. When the market trend reverses, they fall into confusion, and then enter a dead end in pursuit of the indicator's win rate.
The essence of the market is a game of risk management, and risk is a math game. The underlying model for a proper trading strategy is actually Deal win rate* capital distribution* time = comprehensive profit and loss ratio. Many retail investors only pursue winning rates, but they don't understand how to invest their capital, so they often experience situations where asset values fluctuate greatly and mental exhaustion is serious. The end result is mainly failure.
In terms of transaction win rate, my personal experience is that the indicator's transaction win rate far exceeds the news (fundamentals). Technical analysis is much less difficult than value investing, and is also suitable for beginners. Beginners who are new to the stock market are advised to learn some indicators and use them proficiently, then go to advanced position management.
I wish Moo friends a successful transaction!
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
SGX market
Start: 16/04/2024
KC strategy
Win 7
Lose 2
176Followers
47Following
1131Visitors
Follow
myeyok1962 : Thank you
⥣LiD1016⥣OP myeyok1962: