What does a beginner trader need to understand? - Digital Cryptocurrency Exchange Platform Technology

Contrary to this view are retail participants,

Always trying to break into others’ territories to make money,

Thinking that all opportunities are related to themselves,

People with this mindset,

Indicate that you are still a novice.

One:

Birds of a feather flock together,

Stocks are grouped by categories.

Opportunities in the market are layered,

For example, thematic speculation opportunities and long-term value growth opportunities,

Whether from the perspective of characteristics or operational methods,

They are two extremes.

Thematic operation methods give you daily limit-ups,

Value operation methods involve rises followed by partial retracements,

Continuous and unending.

Who gives you the courage,

To think you can make money from both? Back to trading techniques,

There are even more layers.

There are long-term trades,

Short-term trades,

Low buy-ins,

Breakout plays, etc.

No matter which layer you’re in,

It’s hard to easily make money crossing layers,

Because your cognition is insufficient,

Experience is lacking,

And you are easily harvested back and forth.

Such a simple principle,

Sometimes traders are just confused by the situation.

When a bullish candlestick appears,

They haven’t yet identified which layer’s opportunity it is,

Haven’t thought about it,

And start to act recklessly with methods from different layers,

Where else would they run to? Another trader misconception,

Is liking to force opportunities when none exist,

For example, when the market is weak,

And the profit effect is poor,

They insist on making money in such an ecosystem,

Especially when the market is good,

And they haven’t made much money themselves.

All successful traders are adept at using a certain layer,

Trading within their familiar territory,

For example, Lin Yuan focuses solely on value investing,

Looking at various capital flows,

Focusing only on thematic and short-term opportunities,

Not missing any market opportunities,

Not specializing in one field for research,

Trying to make money from everything,

Eventually, they get beaten to the ground,

Is there really a retail trader who is good at both a 100-meter sprint and a marathon? Can such a large volume be handled by just one trader? Although there are stocks rising every day in the market,

If you want to break into others’ areas of expertise to make money,

It is very difficult.

Let’s discuss from two aspects: practical and theoretical.

Practically,

Because my driver has experience with Hong Kong and US stocks,

T+0 trading,

Some of the techniques,

Are clearly profitable,

Just like eating and sleeping,

No need for proof,

Buy at low prices,

Sell at high prices,

In essence, two transactions,

Profiting from these two trades,

The shorter the time between the two,

The clearer your view,

If no other trades occur between them,

You understand the meaning of no proof needed.

Theoretically,

Participants in trading are all here to make money,

So,

Will these participants let the price fluctuate back and forth, causing themselves to lose money sometimes and gain sometimes?

Many people who believe in random price theory are mentally abnormal,

They pretend not to understand why everyone trades,

And invent concepts like random walk,

Please stop pretending.

Replacing the final buyer and seller with two sides,

At any point in time,

There will be a direction,

For the previous point in time,

Prices will change,

This certain change,

Is jointly determined by the two sides of the equivalent substitution.

If you object,

Thinking that you are changing the price by putting in more money,

Sorry,

You are already part of the equivalent substitution.

So here’s the question,

Will this direction change easily? Many people then start to pretend to be naive,

Thinking that prices will change easily,

I ask you, will the profitable traders easily let the price reverse? Then someone will say,

New funds entering change the direction,

That’s simple,

This is a new change,

The previous change has already occurred.

Let me give some more straightforward examples,

If chess is about who loses more,

You will never have a certain losing pattern? If it’s about who runs slower,

You will never have a certain pattern,

Understand?

That’s why profits are possible,

Because there is a stable direction,

And why is there a stable direction?

Because the force maintaining the original direction is greater than the destructive force,

And why is it so big?

Because everyone is here to profit,

Not to watch chaos unfold.

In summary,

Because everyone wants to profit,

That’s why you can profit,

If no one wants to profit,

No one can profit.

Two: What qualities does an excellent trader need?

1,

Stable mindset,

The most important and fundamental trait of a trader is a stable mindset,

Or stable state,

Without this, nothing else can be discussed.

Of course,

Don’t blame everything on your mindset,

It’s either clear or not, and can be clearly defined,

Not decided by profit or loss results.

2,

Ability to think rationally (deductively),

Relying solely on experience and training cannot build your own system,

A good trader must have their own thinking system,

And trading system.

3,

Ability to ask questions and doubt,

Refining experience and critical thinking,

This is the foundation of your system,

And is necessary for continuous iteration and improvement.

This ability itself requires extensive training,

Enhancing the ability to see the essence behind phenomena quickly.

This determines your upper limit.

4,

Be grounded,

Based on your own system,

Training and honing on specific trading details (execution level).

No matter what type of trader,

No matter how good the theory,

Practice must be refined,

Do not neglect this,

Fundamentals must be solid.

5,

Loyal to rationality,

Not human nature,

Be cautious when needed,

Be firm when necessary.

6,

Maintain an open and learning mindset.

There are definitely parts worth learning from successful peers,

This is also a source of experience.

Never become complacent,

The trading field is vast,

Who knows what collisions might elevate you to a higher level,

But avoid chasing superficial things,

Especially talking about “trading philosophy” with losers,

It makes me shy to discuss philosophy on Snowball,

Profitability is the only true test.

Three:

Looking at the mountain from the side,

Different perspectives from near and far.

Not recognizing the true face of Mount Lu,

Only because you are in the mountain.

—— “Poem on Xilin Wall”