Ice_and_Fire1

The Essence of Trading Games

Education
BINANCE:BTCUSDT   Bitcoin / TetherUS
1.The essence of trading games is constantly seeking the optimal strategy in a dynamic and changing environment.

2.The essence of trading is a group game. To trace it back, it is about constantly evaluating the amount and inclination of potential buyers outside the market, against the amount and inclination of chips held inside the market. Buy when the former is greater than the latter, and sell when the latter is greater than the former. The reasoning for buying inclination mostly comes from the effect of making profits, while the reasoning for selling inclination mostly comes from the effect of losing money. Then, combined with the overall market trend and the current hot spots, instant operational judgments are made. Operations are instantaneous while judgments are dynamic.

3.The essence of stock price movement is a game between holders and fund raisers. One should understand the motivations of both parties and position themselves on the active side. As the market sentiment shifts from limited downside to disappointment and exiting, the emotional part of the chips held inside the market gradually dissipates. At the same time, outside funds gradually accumulate. When the moment of market sentiment reversal arrives, funds will flock in, and this process will continue to repeat. If there are any regularities in the stock market, this process of emotional transformation is one of them and will not change greatly within the next thousand years.

4.During a strong market, the logic of buying stocks is that capital under the effect of making profits continuously enters the market, so the probability of selecting strong targets by later funds is high. Therefore, strong targets are chosen. During a weak market, the logic of buying stocks is that the spreading effect of losing money in the market leads to the continuous outflow of panic-selling. Thus, only a small amount of buying can push prices up. Therefore, buying at a low price is advisable.

5.Studying history provides insights into the rise and fall of things. This is also true for the stock market. Once the regularity of the rotation of past hotspots is grasped, the accuracy of natural expectations will improve.

6.If one understands the heart of the market, success will follow closely. If one's heart is controlled by the market, failure will persist.

7.Not all phenomena can be explained, but some have universal regularities. For example, the good timing for left-trading is after a continuous decline followed by a collective sharp decline. One should be particularly careful when there is a collective limit up after a continuous increase.
Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.