Most people take the golden cross of the moving average as a buying opportunity, but in actual operation, it often goes against their wishes. Because when they look at it, the trend has already formed, and when they do it, they face an unknown future. Whether the golden cross or the dead cross is useful depends on whether a trend can be formed in the future. The occurrence of a smooth trend is a low-probability event. The actual application of the moving average should follow after the market occurs, and it is used to determine the continuation or end of the trend. The focus is not on opening a position but on holding a position.
Many traders always want to figure out why the market goes up or down when they make mistakes. In fact, there is no reason in many cases, and the rise and fall is not determined by individuals. Many people work hard but get no results and are confused. What we should really figure out is why we didn't do it right, from analysis to planning to execution. If it is a human problem, learn from the lesson and improve it. If not, don't worry about it. Trading is profitable and loss-making. Worrying about uncontrollable things will only make you sink deeper!
What is really useful in trading is not what you learn from books, but what you get from self-feedback after trading practice. Many traders are keen to learn various trading strategies from outside, which reflects that their trading cognition is problematic. People, not methods, really make money. You may lose money if you use other people's methods to make money. Because people have not changed, even the best methods will lose money; if people have changed, simple methods can also make money. People who constantly seek methods from outside will find it difficult to make money because of their cognition. Some people may not even understand it in their entire lives! #杰克逊霍尔年会
The most taboo in trading is to use pressured funds. Once there is pressure, the mentality is easily distorted. You will panic and exit the market because the market is not moving normally, and then regret that you were in a favorable position at the beginning. You will also be blindly betting everything when there is no opportunity due to the limited time of using funds, and eventually lose miserably. #美国CPI数据连续第4个月回落
Trading is not scary, it is normal to make mistakes. It is these right and wrong experiences that can promote people's growth. Losing money due to mistakes is not scary, what is scary is to use real money to verify other people's views. Profits without knowing why you make money are unsustainable; losses without knowing why you lose money will continue, and you will eventually lose a lot of money without knowing why, as if it has never happened! #加密市场反弹
How we like to win and don't like to lose; how we like to be noticed and don't like to be ignored... All of these are traps. If we fall into one of them, we will become weak.