Secrets of the Trading Market: In the rare group of traders who achieve stable profits in the market, there are both experts and professionals. However, the thought-provoking issue is that regardless of whether it is futures or the stock market, there is a well-known phenomenon: the proportion of losing traders is significantly higher than that of professionals. What does this indicate? It suggests that success in trading is not determined by technical analysis. At least, the negative factors are not technical analysis. The success or failure of trading is not determined by technology. In the Chinese A-share market, 98% of people believe in fundamental and technical analysis, while only 2% believe in capital management and trading strategies, with only 0.3% making consistent profits. What these individuals firmly believe in is risk control, behavioral discipline, and capital management. Clearly, based on this simple and straightforward analysis, it is very difficult, if not impossible, to make money by merely mastering technical analysis. The harsh truth revealed by this somewhat crude logic is something that ordinary traders, who are immersed in technical analysis and are naively unable to extricate themselves, fail to recognize. Both bulls and bears adhere to the same type of technical analysis, but their ultimate situations can be vastly different, even life and death. This indicates that the determining factors in trading are not technical analysis, but rather trading concepts beyond technical analysis: capital management, risk control, behavioral discipline, and trading psychology.
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