Daily Trading Theory Sharing:


Prices move in a trend-based manner.
Trading is a marathon, not a 100-meter dash. Have you ever seen someone run a toxic race in a 100-meter sprint on a marathon course? That often leads to sudden death.
Some say trading is gambling, which is probably just the angry words of those who lost money. I believe that gambling, compared to trading, can only be considered a low-level hobby! Because gambling makes money by luck, while trading makes money by trend. This is the biggest difference between gambling and trading.
What is a trend? To put it simply, a trend is when the market moves consistently in one direction.
As long as the market can be traded, buyers and sellers cannot always be evenly matched; one side will have a temporary advantage, which will inevitably form a trend. It's just that the duration of the trend varies.
In terms of time, trends can be as long as several years, or as short as a few days or even minutes. Theoretically, all can be considered trends. But in daily trading, we pay more attention to larger trends. Because you are participating in trend trading, a major trend is like the mighty Yangtze River flowing eastward—clear direction, grand momentum, and difficult to change. Smaller trends are like the waves stirred up on the Yangtze—highly random, fleeting.
People tend to follow the crowd, and capital seeks profit. Once there are signs of a trend forming, more people will be attracted to participate, and the trend will become more solidified (though it can also fizzle out). If this upward trend grows healthily, it will form the primary trend and the secondary trend.
The secondary trend moves in the opposite direction of the primary trend. The secondary trend is not a flood or a beast; it can inject new vitality into the market, making it more active, and attracting more participants into this battle of attack and defense.
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