There is a saying in the trading circle that most people who follow the trend die in the shock, and most people who rely on news die in the trend. Most people who do short-term trading die in the violent pull, most people who rely on subjectivity die in feelings, and most people who rely on news die in the news. $ETH

If too many people use a certain method, the market will change because a few people make money from the majority, resulting in a decrease in the money-making effect of the method. Similarly, after the money-making effect of the method decreases, fewer people will operate it, so the money-making effect of the method will become better. This repeats. Therefore, we can see that many traders are constantly learning new methods and ideas. They have changed one after another and have read hundreds of trading sets, but their accounts sometimes make money and sometimes lose money. #BananaGun钱包被盗

The solution to this problem is to either do medium and long-term trading or filter out unsuitable market conditions. Livermore discovered this law, so he said that speculation is as old as the mountains and there is nothing new on Wall Street. If a trader often looks at weekly and monthly charts, he will slowly discover some unchanging rules. #加密市场反弹

Similarly, this way of thinking also requires traders to be very patient, so no matter which way they go, patience is the most important. After understanding the above principles, there is still the most difficult view of human nature. Livermore said that whenever an investor or speculator has a period of continuous smooth sailing, the market will always release a kind of temptation, making him either paralyzed or overly ambitious.

In this case, it is necessary to rely on sound common sense and a clear mind to keep the existing fruits of victory. We see that at the end of the bull market, most retail investors firmly believe that every time they buy in a callback, they will make a lot of money, so they were trapped at the highest peak during the last callback. This level cannot be passed by perfecting technology. Livermore's method is to take out a part of the profit and save it after each substantial profit. If you continue to operate, it is easy to lose it immediately.