"If you know how to buy, you are an apprentice; if you know how to sell, you are a master"? No, big mistake!

Old Xu traded those things (pattern trading method)
老许交易那些事1

Everyone has just entered this market, and often hear the "old man" in the investment field tell us that if you can buy, you are an apprentice, and if you can sell, you are a master! Then we tell new investors that they are apprentices who can buy, and masters who can sell! Yes or no? Over time, everyone thinks that this sentence is true, "A student who can buy is an apprentice, and a teacher who can sell is a master!" In fact, I tell everyone, it is wrong, it is wrong!
Why?
Let's start with where retail investors lose money. Many people say that they are right without stop loss, carrying orders, and having too large a position. But these are fundamentally psychological, that is, mentality problems. I don't know where to bring it. If the position is too large, I just want to earn more at once, right? In fact, let me say that the main loss of retail investors is that they enter the market at will. This is the real technical level! It is the operational level! You see, most people who lose money have a common problem, that is, the market affects their operations. When the market is big, they must chase or reverse operations. Most of the transactions are relatively frequent, right? Entering the market randomly will cause many orders to enter without a price advantage, so the stop loss must not be easy to bring, even if you bring one, the effectiveness is not strong, and the loss in the end will be a waste of money, which will not benefit the subsequent operations , I couldn’t learn anything, and in the end the account was liquidated, but I didn’t learn anything! Re-deposit is still the same result!
Let's think about it at another level. If retail investors choose to go long at the key support zone and short at the key pressure zone, will the stop loss be taken? Of course it will, if the key support band is long, the stop loss will be brought below the support band, if the key pressure band is short, the stop loss will be brought above the pressure band, and the absolute value of the stop loss is not large! Because it is an order at a key position, in many cases, it starts to make a profit shortly after the order is placed. Is it still a problem to enter the market? Even if the entry is not at the best point, but because it is an order at a key position, it is not too difficult to make a profit that is greater than the expected loss, right? In addition, if both are seasoned and experienced traders, which one do you think is easier to hold orders? Which is easier to get a good starting point?
So, let me say that the master is the one who can enter the market, and the most important thing is to have a relative point advantage in entering the market! As for the key position mentioned by Lao Xu above, how to find the key position, which position is the key position, that is the topic of the trading system, we will talk about this later!
What do you think? Welcome to leave a message to discuss!
Tian Ji races a good horse!

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Last updated: 09/05/2023 16:27

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