Decoding Trading Games: The Path for Retail Investors to Advance and the Logic of Institutional Trading in Capital Market Games. For retail investors to break through their dilemmas, they must deeply understand the five major trading strategies of institutional funds and achieve a three-fold transcendence in their self-trading awareness.
The Five Major Control Strategies of Institutional Funds
First, create panic through a sharp decline to accelerate chip collection; second, use low-volume sideways movement to wear down market patience and achieve control objectives; third, utilize volume surges to attract follow-up investments, creating the illusion of an uptrend; fourth, take advantage of high-price movements to complete high-level exits and harvest chasing funds; fifth, induce retail investors to enter during staged major increases, ultimately achieving chip cashing out. These strategies often trap retail investors in a cycle of chasing highs and cutting losses.
The Three Levels of Advancement for Retail Trading
The first level is for traders to establish a complete cognitive system, no longer relying on external signals, but instead exploring the essence of trading internally; the second level is to abandon luck-based thinking, formulating strategies with a determination akin to burning boats, directly facing market risks; the third level is to transcend the obsession with profit and loss, returning to the core logic of trading, and responding to fluctuations with a pure mindset. If anxiety and eagerness for success frequently appear in trading, it often signifies that the investor has lost independent judgment and has become a follower of market emotions.
The Core Rules of Successful Trading
The true wisdom of trading lies in the "Philosophy of Subtraction."
By simplifying trading strategies and reducing ineffective operations, investors can strip away market noise and focus on key signals.
The daily rhythm of mature traders is highly regular: either patiently waiting for entry opportunities that align with their trading system or enjoying life with a calm mindset, achieving a balance between trading and life through restraint and composure.
