There is a famous saying in the investment world: "People can only earn money within their cognitive scope." A person’s cognitive level limits his ability to make money, so how can he improve his trading awareness? Starting today, a collection of trading cognitions will be released to help everyone improve their cognition and avoid detours.
When I first entered the stock market, I also learned various technical indicators like everyone else, hoping to learn an operation technique that can rise when buying and fall when selling. I want to master the trading holy grail and get rich overnight.
technical indicators have been studied for many years and are constantly losing money. It is obviously the same macd golden cross sometimes rises, but sometimes falls; it is obviously the same breakthrough platform sometimes rises quickly, but sometimes it immediately turns around and is hung on the top of the flagpole. It was obviously good news, but it fell immediately after rushing in. The stock analyst explained that the positive news was cashing out, which is negative.
After repeated repeated many times, I fell into confusion. Seeing that the K-line pattern seemed to rise, but also to fall. It seems to rise from the daily line, but it seems to fall from the hourly line. I felt very confused for a moment and completely lost my judgment standard. Stock accounts are also continuing to shrink.
It was not until I did futures once, and I looked at the CDMA indicator of the 1-minute K-line to change with the K-line for a while golden cross , and dead cross . I suddenly realized that these indicators cannot predict the market at all. They are lag indicators, and the changes in the indicators change with the changes of the K-line. A big positive line immediately becomes a golden fork, and a large negative line immediately becomes a dead fork. Isn’t this a joke to use lag indicators to predict stock prices?
Only then did I realize that the short-term changes in the stock price are completely random and unpredictable.
So I was thinking, what is the essence of stock price changes? In fact, stock prices are like commodities, and are determined by supply and demand. If you buy more funds, you will rise, and if you sell more funds, you will fall.
After knowing the nature of stock price changes, I was thinking of any way to judge whether a stock has more funds to buy or sell?
1. Some people say that there is good news and there are more people buying it. As a result, it was found that the main force was often shipped through good news.
2. Some people say that stock price can be judged based on indicators, such as moving average, macd, kdj, etc. As a result, it was found that the main force often used the advantages of capital to manipulate indicators and cut retail investors' leeks.
3. Some people say that if the stock price falls low enough, it will rise, and if the stock price rises enough, it will fall. As a result, it was found that there was a basement that had fallen to the end, and it might have fallen directly to delisting.
4. Some people say that the stock price is controlled by the main force. As long as you know the main force’s ideas, you can judge the stock price. But how can the main force’s ideas be easily guessed by others? Wouldn’t it be embarrassing to be defeated by retail investors with large funds and the latest news? Therefore, it is impossible to judge whether the main force’s intention is to guess.
finally found that the bulls in the market and the shorts in are sooner or later, the bulls are trying to defeat the bears, while the bears are trying to eat the bulls, and predicting each other's predictions. Therefore, it is impossible to judge the direction of stock price change in the short term.
Some classmates asked me how can I achieve stable profits since the stock price changes randomly?
In fact, trading is a probability issue. To achieve stable profits, you only need to pay attention to two points: the winning rate and the profit-loss ratio. The following course will be explained in detail.
If you want to improve your investment ability, please "click to follow". The belief of Crocodile will take you to understand the logic behind finance and improve your investment ability. (Investment is risky, so be cautious when entering the market. "Crocodile's Faith" aims to teach investment methods and do not make any investment advice)
