Below is a concise interpretation of 20 trading concepts to help you quickly understand investment logic:
1. Market Rules and the Nature of Games
1. Bull and Bear Positioning Strategy
- Institutional investors accumulate slowly in bear markets, retail investors follow the crowd at high prices in bull markets (reverse operational thinking).
2. Differences in Risk Tolerance
- Retail investors cannot afford losses (emotional), institutional investors understand risk control (discipline).
3. Characteristics of Retail Investor Mentality
- Taking small losses without changing nature, not respecting market rules, blind trading.
2. Operational Logic and Risk Warnings
1. Contrarian Thinking on News
- Don't chase up on good news (beware of selling), don't panic on bad news (look for oversold opportunities).
2. Duration of Bull and Bear Cycles
- Bull markets usually last shorter than bear markets (bear markets take longer to bottom out).
3. Profit and Loss Psychological Paradox
- Be conservative when profitable, aggressive when losing (need to counteract human nature).
3. Trading Strategies and Discipline
1. Balance of Belief and Realization
- Investment must be secured with profits, empty talk of 'belief' is meaningless (beware of dogmatism).
2. Core of Trend Trading
- Give up on small fluctuations, focus on main upward/downward trends (avoid frequent stop-losses).
3. Contrarian Sentiment Indicators
- Be cautious during market euphoria (risk accumulation), lay out during quiet times (opportunities sprout).
4. Risk Control and Awareness
1. Dangers of Emotional Trading
- A single mistake can affect mindset, and one can also short in a bull market (need stop-loss discipline).
2. Pragmatic Stock Selection Principles
- Dark horses are to be encountered but not sought after, focus on targets with strong certainty (avoid gambling nature).
3. Group Effect Trap
- Beware of the collapse of 'consistency expectations' in popular cryptocurrencies (reverse thinking).
5. Use of Cycles and Trends
1. Multi-Cycle Analysis Framework
- Large cycles determine direction (like weekly charts), small cycles (like hourly charts) find entry points.
2. The Essence of Good and Bad News
- Washouts are often accumulation opportunities, chasing up often encounters bubble bursts (counterintuitive operations).
3. Trend Following Principles
- In a bullish trend, only go long, in a bearish trend, only go short (prohibit counter-trend holding positions).
6. Fatal Mistakes and Their Roots
1. Risk of Lucky Psychology
- Ignoring probabilities, a single stroke of luck can lead to catastrophic losses.
2. Volume-Price Relationship Signals
- Volatility without volume is prone to extremes (need to beware of trend changes), pay attention to volume to validate trends.
3. Warning of Excessive Profit Traps
- Mindless operations in extreme markets are unsustainable (beware of survivor bias).
4. Core Investment Contradictions
- Lack of understanding is the biggest risk, continuous learning is required to enhance trading skills.
Summary: These concepts revolve around 'counter-human nature, emphasize discipline, and focus on logic', the core is to overcome greed and fear, establish systematic trading strategies, and avoid becoming a 'retail investor'. In actual operations, it is necessary to flexibly apply in conjunction with specific market environments.