{x} | Trading.live

The aforementioned experiences have predetermined Trader A's fate for the next decade. As trading trainers, we believe that despite his occasional successes, Trader A's ability level is still that of a novice, and he cannot achieve consistent profitability. Unfortunately, the occasional rewards have distorted his perception, causing him to ignore the warning signs and continue in the wrong direction. In my opinion, the tragedy that followed his initial large trading return was inevitable.
In addition to being overly fixated on trading accuracy, novice traders have another notable characteristic: an excessive reliance on external information, often seeking an excessive amount of it. From my years of trading experience, I have learned that many people lose money in trading not because they lack sufficient decision-making information, but because they do not know how to effectively use and process the information they acquire.
When retail traders begin trading, they usually receive basic training on trading software. In China, this is beneficial as most securities and futures brokers provide free trading software, whereas in other regions, software fees are charged annually or by product type. The free functions on trading software already provide users with ample information. From my perspective, the free information on trading software is sufficient for making simple trading decisions, as most traders are not managing billions or tens of billions of dollars. However, novice traders may feel that the free information is inadequate and may purchase paid trading software and research reports. This often leads to excess, and I can assure you that traders who join our trading room must first use a coin toss to determine their buying and selling direction before joining. Many people may not understand and assume that using a coin toss to determine trading direction is no different from gambling. We will discuss the intricacies of this method in later chapters.
Many people believe that having sufficient information is crucial for achieving success in any task. However, defining what "sufficient" means is often difficult, and in reality, success is the ultimate goal. If the outcome meets one's expectations, then the information used during the process is considered sufficient. Conversely, if the result is unsatisfactory, people tend to think that they lacked necessary information. They believe that if they can discover the key information they missed before, they will be able to achieve their desired goals next time. This thought process works well in natural science but is less effective in social science because social science is often unpredictable. According to information processing theory, randomness can represent both too much information and too little information. To illustrate this point, we will provide an example in the next section for readers to understand.
Employee C, who had no prior trading experience, decided to open a stock trading account after hearing that stocks were a good way to make money. Initially, he followed the advice of financial experts on the radio, but after incurring losses, he realized that he needed to study investment trading with the same diligence he had when preparing for college entrance exams. During his studies, he stumbled upon the MACD technical indicator and used his real money to trade with it for a few months, but eventually realized its lagging issue and stopped using it. He then tried various other technical indicators such as KDJ, Rate of Change, CCI, RSI, Williams %R, among others, but eventually concluded that technical indicators were useless. He then shifted his focus to fundamental analysis, studying the country's economic cycle, international political games, financial ratios of listed companies, and various domestic and international economic indicators, essentially turning himself into an economist. However, he discovered many flaws in fundamental analysis as well and attempted to combine his knowledge of technical indicators with fundamental analysis, but still failed to succeed. After three years of trading, he gave up with/>/>/>/>