I often tell my friends that there are many illusions in the stock market, and there are tricks everywhere.
Many people don't understand what the tricks are.
Most retail investors think that the tricks are just washing the plate, but in fact, it's just the tip of the iceberg.
The tricks in the stock market are mainly concentrated in two aspects: information and the main force's actions.
Information is relatively easy to understand.
The information that retail investors see is either public information or information that the main force wants retail investors to see.
In simple terms, most of this information is of little value, or it is seriously delayed.
What's more, information can become a counter-indicator and a reason for taking over the plate.
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Retail investors always believe that all news will not come out of thin air, but the reality is that there are far more fictional messages than real information everywhere.
In the big net woven by the main force, the information link is used to deceive the opponent.The main force's biggest opponent must be the retail investors, as this group has the weakest ability to discern information.
Using information as a cover, they weave a nightmare where buying can make money, ultimately smoothly covering their own exit.
So what kind of illusion is the main force's movement?
The main force's movement is actually very crucial in investment and is the essence of whether retail investors can make money.
If conditions permit, the main force will try to create a false impression in the opposite direction to mislead retail investors into making the wrong decisions.
The so-called conditions permit, for example, by using the system to break down the purchase and sale orders.
This approach can effectively interfere with technical statistics, making retail investors mistakenly believe that the main force has entered or has already delivered goods, achieving the effect of absorbing funds or washing the plate.
For example, creating some false impressions on the K-line, the false impression of the volume.
Making K-line is actually very easy for the main force with high control of the plate.
Including the trading volume, the main force can also control the situation of the volume through the method of left and right hands.
The main adversary for the primary force must be the retail investors, as this group has the weakest ability to discern information.
Using information as a decoy, they weave a nightmare of making profits through purchases, ultimately facilitating their own exit.
So what kind of smoke and mirrors is the movement of the main force?
The movement of the main force is actually crucial in investment and is the essence of whether retail investors can make money.
Under permissible conditions, the main force will try to create a false appearance in the opposite direction to mislead retail investors into making incorrect decisions.
The so-called permissible conditions, for example, through the system to break down the purchase and sale orders.
This approach can effectively interfere with technical statistics, leading retail investors to mistakenly believe that the main force has entered or has already sold, achieving the effect of absorbing funds or washing the plate.
For example, creating some illusions on the K-line, the illusion of volume.
In fact, for the main force with a high degree of control over the plate, making K-lines is very easy.
Including the trading volume, the main force can also control the situation of the volume through the method of left and right hand transfer.In summary, the market you see is not the most authentic market; illusion techniques are rampant in the stock market.
It's like the current market still has a transaction volume of 500-600 billion.
But the actual situation, if you exclude the quantitative funds that are doing programmatic trading every day, the market's transaction volume will be at least halved.
The market can release illusion techniques in various ways to confuse the insiders.
In fact, breaking the situation is not very difficult. Having your own logic and investment strategy can easily see through these little tricks.
Any illusion technique has a target and significance.
Firstly, it is aimed at the news that is flying all over the market.
For the authenticity of the news, it mainly depends on the official website's release, not self-media and small compositions.
Unverified news should not only not be believed but also not even looked at.You cannot possibly be the first person to receive "confidential" information. By the time you know it, even if it's true, the entire market is already aware of it.
Therefore, do not be confused by minor compositions, regardless of their authenticity, their value has already diminished.
Secondly, even if the authenticity is reliable, it is necessary to analyze the logic behind the information, rather than the literal logic.
When everyone is aware, what kind of impact does the news have on the stock market?
For example, when positive news is released, some stocks open high and close low, while others are directly locked at the upper limit of the daily price fluctuation.
This indicates that the capital's interpretation of the news is actually different.
Some news will be interpreted as positive, while other news, seemingly positive, is actually just a cover for the main force to sell out.
This requires an analysis of the logic behind the news, whether it can support the stock price to continue rising.
Information will eventually be transformed into a game of capital, information will become the foundation of investment logic, and the market will provide conclusions and answers.
This also indicates that most of the retail investors' interpretations of the news are ineffective.Only retail investors themselves can discern the authenticity of information and analyze what the true capital is conveying behind the information, which is valuable.
To be honest, this is quite difficult, but it is also a necessary experience on the road to success.
Then, what is important is one's own investment logic, or trading system.
A trading system can effectively help retail investors see through the smoke and mirrors of the main forces.
Strictly speaking, it cannot be considered as seeing through, but rather as trying to ignore the smoke and mirrors of the main forces as much as possible.
The smoke and mirrors of the vast majority of the main forces are not very sophisticated.
They just exploit the weaknesses of human nature, especially greed and fear, to make their case.
False candlestick charts, trading volume, patterns, technical statistics, chip distribution, and so on, are all just used to confuse investors with weak willpower.
Because most investors believe in what they see with their own eyes.
This is like a stock that has been doing well, but after a significant increase in volume and price, the attention and buying of retail investors will suddenly rise.That is because, before the stock rises, everyone is skeptical about its future fluctuations.
When it falls, people think the main force has fled, but when it rises, they think the main force is still there, and there is hope again.
Retail investors without a standard of judgment are easily misled by these inferior tricks.
Try as much as possible to use a set of standards to judge the rise and fall of the market, rather than relying on emotions.
Emotions themselves can resonate, and when everyone's emotions are similar, it is easy to be exploited by the main force.
But when you have a complete trading system, it is very difficult to deceive you.
Because the main force will not target a specific person, so no matter how they toss and turn, as long as your system does not issue a buy or sell signal, you do not need to make a trading decision.
At this time, the probability of being deceived is naturally low.
Because you have established your own game with your own system, rather than being in someone else's game.The essence of the capital market is a game of strategy, which is essentially mutual deception.
The so-called buyers and sellers are actually parties with divergent views on the market, hence they take opposite actions.
The art of distraction is the key to the game between the two sides.
The essence of the game is to profit by taking advantage of the other party's incorrect judgment.
The size of the capital may dominate the rise and fall in the short term, but in the long run, capital will ultimately show a tendency to converge.
That is, a minority of capital will eventually obey the majority of capital.
For retail investors, the most critical thing in the market is to know how to be themselves.
Many retail investors are like reeds in the wind, constantly swaying with the wind, and ultimately being blown in all directions.
The recent market has shrunk in volume, which means that the actual exchange of chips is not much, and the deceptive nature at this time will be stronger.
The market has reduced real transactions, the game between the main forces has also been reduced, and the rise and fall are more just appearances.Behind the true ups and downs, there must be a game of chips, and volume is the foundation for the start of a big market.
When you can't understand this market, think of the three words "illusion".
If you still don't understand, then don't trade, and the less you do, the fewer mistakes you will make.
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