Record today's day and think about your trading experience
The logic is not who bought early or who called early, but who made more money. What does it mean if others bought early but sold out?
Trading is a systematic thing. It requires measuring the value of the narrative, durability, the funds that can be cut in, etc.
Some big investors will consider entering the pool when it is larger than 100e because they have a higher degree of certainty. Buying early means that everyone has bought it, but it is not as good as those who buy it at the end and are sure to get out.
Another thing is that temporarily escaping the top will encounter psychological price cleanliness, and once the price drops, people will not be willing to buy so many goods (the cost becomes higher).
Finally, it is a new high, and the position becomes less. The logic is not who bought early or who called early, but who made more money. What does it mean if others bought early but sold out?
Trading is a systematic thing. It requires measuring the value of the narrative, durability, the funds that can be cut in, etc.
Some big investors will consider entering the pool when it is larger than 100e because they have a higher degree of certainty. Buying early means that everyone has bought it, but it is not as good as those who buy it at the end and are sure to get out.
Another thing is that temporarily escaping the top will encounter psychological price cleanliness, and once the price drops, people will not be willing to buy so many goods (the cost becomes higher).
Finally, it reached a new high and the holdings became smaller.
Summarize six points:
1. Transaction logic:
- Trading logic is not a simple "first come, first served" but needs to be based on a deep understanding of market trends, including technical analysis, fundamental analysis, market sentiment and other factors. An effective trading logic will take into account the intrinsic value of assets, market supply and demand, macroeconomic conditions, etc.
2. Systematic Trading:
- Systematic trading refers to trading using a fixed set of rules or strategies. This system may include entry and exit conditions, risk management measures, money management, etc. The purpose of systematic trading is to improve the consistency and predictability of trading by reducing emotional interference.
3. Funding scale and certainty:
- Large or institutional investors usually need greater market liquidity to execute their trading strategies and avoid having too much impact on market prices. They may enter when the market size is larger because the market has higher certainty, better liquidity and lower transaction costs.
4. Early vs. late purchases:
- Early buyers may face higher risk due to market uncertainty, but they may receive higher returns if the market eventually moves in the expected direction. Late buyers may miss out on the initial growth, but may enter when market trends are more clear, thus reducing uncertainty and risk.
5. Psychological factors:
- Traders may miss out on further growth opportunities after the market reaches a new high due to price prudence (i.e. unwillingness to buy at higher prices). This psychological phenomenon may lead to their unwillingness to add to their positions when prices pull back, thus limiting their potential gains.
6. Position management:
- As market prices rise, investors may choose to reduce their positions to lock in profits, which is a risk management strategy. However, this approach may also lead to a reduction in positions when the market continues to rise, thereby missing out on more profit opportunities.
Each point of view emphasizes different aspects of trading and investing, from market analysis to psychological factors to risk management. Successful traders and investors need to consider these factors comprehensively, develop a trading strategy that suits them, and constantly adjust and improve it in practice.#交易认知 #交易理论 
