Why is this year's market so difficult to play? Why is it so difficult to make money?
Because the dog dealers are really dog-like
- This is not to abuse the market, but an objective fact.
In terms of market trends, no matter the size, there are continuous V-reversals.
If the market is rising violently, it can suddenly go down;
If the market is falling rapidly, it can suddenly go up.
For retail investors, whether they are long or short, if they want to make money, they need to have a process of identifying trends, participating in trends, and confirming trends. To successfully complete this process, there should be appropriate sideways accumulation/shipping of funds when the trend turns, and there should be normal retracement tests after the trend starts.
However, in most of this year's market, the above process has been greatly condensed:
The ups and downs are inexplicably sudden and continuous;
When you identify the trend, the trend is basically over, and it will soon turn into a reverse trend. This is why it often rises when you go short and falls when you go long.
Touching the top and bottom on the left side is easy to touch the middle of the mountain;
Entering and exiting the market on the right side, the entry signal is the exit signal.
This is true for the market at a small level, such as the ups and downs last night, Figure 2;
This is true for the market at a large level, such as the rapid rise at the beginning of the month, Figure 3;
This is even more true for cottage industries, such as ACE in Figure 4.
