The essence of trading is gamblingThis is a truth that many people know. However, it is not enough to understand this literal meaning, it is also necessary to understand its connotation in depth. If you want to use the principles of the game well, you must carefully study your opponents and find a strategy that suits you. A good gaming strategy is usually to defend first and then attack, because defense is based on superiority.
And the advantage can only be possessed on the basis of figuring out the opponent. Understanding your opponent needs to be based on information. The market is an ever-changing environment, and different sizes of money play different roles in it. As traders, we need to be clear about where we stand and who our competitors are. For small **, big money is our competitor, not other small scatter.
This is because large funds have stronger strength and can influence market trends, while small ** are more susceptible to large funds. Therefore, we need to take a hard look at the behavior patterns and ways of thinking of big money in order to better respond to their actions. The opponent of the big money is the small money and the super big money, it needs to eat the small money, but also to prevent the small money from biting, at the same time, it also needs to deal with the erosion of the big money. Big money at the same level is also his enemy. In this case, big money needs to use various means to trap small money in order to reap the benefits of it.
For super-large funds, they are not all participants in the trading market, for example, institutions such as central banks are super-large funds, and their goal is not to make money in the market, but to influence the market climate through monetary policy and other means. The actions of these mega-sums can change the market environment and have a significant impact on the market. For small **, other small ** are strangers, big money is an opponent, and super money is an ally. Identifying our opponents can help us find our strengths.
Only by knowing who our opponents are can we better develop our own strategies. During an interview, the interviewer will often ask the candidate what are the strengths?Many people will answer that they are handsome, write beautifully, learn Xi well, be eloquent, etc. But these answers are all wrong, because it is only through comparison that an advantage can be generated. So we need to be clear about who our opponents are, and not rely on our subjective imagination to get a vague answer. Only by finding a real opponent can we better establish our advantage. As a small **, our opponent is big money, and if we want to establish our own advantages, we need to understand the thinking and behavior patterns of big money.
We need to figure out the psychology of big money and think from the perspective of our opponents. Only then will we be able to better understand the essence of technical analysis and not simply see it as a "golden finger" or a "panacea". When we move up the dimension of thinking, we understand that our strength lies in flexibility and persistence. Flexibility is due to the speed at which we enter and exit the market, and persistence is due to our patience with the market.
And big money doesn't have this advantage. Persistence is because there is time pressure on money borrowed by big money, while our money is our own and can be held for a long time and wait for opportunities. When we position our strengths as flexibility and persistence, following the strategy will naturally become our choice. Through continuous trial and error and adjustment, we can better respond to changes in the market and obtain more benefits.
As a purely technical trader, we need to observe the behavior of our opponents and the operation of the market from the market. This requires us to be deeply involved in the market for a long time and to be in close contact with them. It is only by deeply understanding the connotation and subtleties of information that we can better respond to the challenges of the market and become successful traders. Therefore, the essence of trading is not only a numbers game, but also an in-depth understanding and cognition of oneself and the market.