Leek style
Buy as soon as you enter the market
Entering the market at the tail end of the market is the fate of most people
mending the situation before it is too late
As soon as I entered the venue, all my money was spent.
Even the borrowed money was spent
premise
If you still have money, just cover up your position slowly.
If you don’t have enough money, you’ll work hard to make money outside the market.
The solution to the problem is ultimately your insight library, knowledge base, and decision-making machine.
The most important abilities that traders should master
The difference between investors and speculators: Speculators refuse to learn, investors are good at learning
Before trading, research carefully and learn deeply.
After the transaction, regardless of winning or losing, summarize and improve the next decision.
Wrong views of leeks
Trading is not a zero-sum game
In a bull market, you make more money than you lose. In a bear market, the accumulated losses are more than the gains.
The biggest force in the stock market: bull and bear cycles, economic cycles
We bought at the wrong time
The timing is wrong. It is the most essential, reasonable and correct explanation with guiding significance.
Transactions are the result of inconsistent thinking. If thinking, judgment, needs, and conclusions are consistent, there will be no transaction.
looking for value
Study the value before buying, versus study the value after buying and discover something is wrong. Smart and stupid, only the order determines
Leek does not lack patience, but what it lacks is strength
There is only one way to get rid of the fate of leeks, improve your own strength
In the trading market: strength refers to: long-term stable low-cost cash flow
Borrowing money, financing, or the ability to make money
and control positions
Always maintain a certain proportion or a certain number of positions
risk
and always have a lower bottom
Those who like adventure are all leeks
Good traders are ultimately risk averse
Can I take risks? I will never take risks.
If you want to take risks, let fools take risks and observe and gain experience yourself.
Risk and winning rate can be calculated
Return to risk ratio = return/risk
No stop loss line for novices
How to set stop loss line
Greater than the daily fluctuation range, such as a daily fluctuation of 25%, it should be greater than 25%
It is better to prepare for the worst than to be blindly optimistic
Daily fluctuations in trading targets.
Frequency is the fundamental factor that determines a certain amount.
The daily fluctuation range depends on the observation period, minutes, hours, days, and months. .
The higher the transaction frequency, the closer it is to a zero-sum game.
In the short term it is a voting machine, in the long term it is a weighing machine.
Leek needs to turn over and reduce transaction frequency
Frequent trading eats up profits and principal
High-frequency trading is a behavior controlled by the market. The more short-term the prediction, the closer it is to flipping a coin.
The essence of reducing transaction frequency is to adhere to logical judgment
Rely on guessing, or rely on the logic of cycles and trends
Can't buy the highest and lowest points
At any price high and low, there are the fewest trades
emotional extreme
Highs and lows are caused by the impulses of a small group of traders
You are unlikely to buy at the top or bottom
Rationalizing the wrong things you have done is a process of brain reshaping
If you accidentally do something wrong, you must correct it and never try to rationalize it in any form. Otherwise, you will only go further and further down the road of becoming stupid.
The proportion of fools is naturally higher and the consensus is stronger.
Pain Reflection = Progress
Dario at Bridgewater
Prevention to improve return-to-risk ratio
Reported Risk Ratio = Possible Return / Possible Risk
When the molecules are large enough,
Get rid of the curse of leeks
possible returns
Choose a better target
Choose better trading opportunities (e.g., buy after several sharp drops)
Putting it longer is time (for example, traveling through bulls and bears once)
In order to increase the size of the molecule, once bought, it does not move, regardless of whether it rises or falls, and goes through bull and bear situations many times.
possible risks
Adjust stop loss lines to reduce risk taking
Reduce the proportion of each transaction amount in total funds
Improve your off-site earning ability (fund-raising ability)
Reduce the denominator, improve your ability to make money off the market, and treat the money you put into the market as lost.
A lower risk market
Different markets, Nasdaq ETF?
Only buy one or two or three targets with the largest trading volume.
Temporarily give up your own IQ and trust the market's IQ.
If it rises violently, it will rise even more violently. If you fall hard, you will fall even harder.
Everything is falling, choose the one that falls less
Reduce transaction frequency
FOMO: fear of missing out, extreme fear of losing opportunities
In every cycle, there will be a group of people who repeat the words of the group of people who have left before. There is no difference, but they seem to have discovered a new world.
Spend a lot of time living seriously and entertaining yourself. Don't stare at the screen all day to reduce the frequency of transactions. This is the most important skill that a great trader must have.
lonely transaction
Loneliness may have a price (not necessarily a value)
listen to most people
Consider minority opinions
make your own decision
It is precisely because of all-in that it becomes a leek.
One of the basic qualities of a successful person is to “maintain a certain proportion of progress at all times.”
Even if the judgment is correct, the market may not necessarily give the correct feedback at that moment.
Market capitalization = valuation * net profit = sentiment * performance
When an accident occurs, there is no solution without advancement.
Understanding cycles and cycle me
An up cycle and a down cycle constitute a complete cycle.
The real trend often takes multiple cycles (at least 2) before it can be truly realized.
Rise and fall are just appearances of truth. There are no straight lines in the real economy, only fluctuations.
Paying attention to cycles and the real trends emerging behind multiple cycles will give you a more reliable world and vision.
Buffett: My favorite cycle is forever
It’s not about grasping the bull and bear once, but traveling through the bull and bear many times.
How to grasp the cycle: Observe the emotions of most traders
Bull market peak: All-in, fomo reaches its peak
Bear market low: Leek calms down after disappointment and abuse
Don’t make decisions based on zero-sum game thinking in a non-zero-sum game.
Wondershare EdrawMind
