BIGTIME
The truth about the eight laws of trading
The first one: the 19-10 rule
Interpretation: 10% of people earn 90% of the profits
Revelation: When trading, the views of most people are destined to be wrong.
The second one: zero-sum game
Interpretation: The winner gets what the loser loses
Revelation: Trading is a contest between people, you earn his, he earns yours.
The third one: the Matthew effect
Interpretation: The strong will always be strong, the weak will always be weak
Revelation: The higher the tolerance rate, the easier it is to make money, and stop loss and position management should be planned in advance.
The fourth one: the watch law
Interpretation: Two watches cannot accurately determine the time
Revelation: The more reference opinions for trading, the easier it is to make mistakes.
The fifth one: Murphy's law
Interpretation: The more afraid you are, the easier it is to make mistakes
Revelation: When trading, you are very worried, you have to stop, adjust your mentality, and do things with greater certainty.
The sixth one: Seeking profit and avoiding harm
Interpretation: People always choose what is beneficial to themselves
Revelation: Retail investors like to chase up and bottom-fishing, and the subjective probability of consistency is extremely high, and there is a lack of layout.
Seventh: Frog Law
Interpretation: Frogs will not escape when cold water is heated
Revelation: Once you are trapped in a transaction, the slow decline and negative decline are the most terrible.
Eighth: Barrel Law
Interpretation: How much water a barrel can hold is determined by the shortest board
Revelation: The lower limit of trading profit is determined by the lower limit of the trading system.
