When you first entered the market, you may think that it is easy to make money from trading (the lucky period for beginners); but after you have been trading for a while, you will find that it is very difficult to make money from trading, and it is even more difficult to make money continuously. Today we are going to discuss with you how to make money with certainty in an uncertain market. The core point or what you should focus on is "making money with certainty".
a market uncertainty
One of the most important characteristics of market trends is uncertainty. The main reasons for market uncertainty are as follows:
1: The market trend is not modeled and programmed, and behind the trend is the subjective operation of people.
2: The market trend is affected by many factors. Whether it is fundamentals, technical aspects or even psychological sentiment, it will have an impact on the market. At the same time, many emergencies or data will also affect the market, and these emergencies or data cannot be judged in advance.
The probability of the second market
The above two points, especially the second point, determine that the market trend is uncertain, but this uncertainty is not a completely random trend. While market trends are uncertain, they also have the characteristics of probabilistic trends. The main reasons why the market has the characteristics of probabilistic movements are:
1: Generally speaking, the decisive factors affecting the market will not change in a short time. Whether it is political, economic or other factors, the determinants of their formation are an aggregate, and this aggregate of influence generally does not change in a short period of time. For example, the global economic recession in 2020 and strong risk aversion sentiment will be difficult to change in a short period of time.
2: The trend has continuity. The continuity of the trend is from a technical point of view. Generally speaking, once the trend is formed and has a certain degree of stability, traders' funds will generally continue to flow into the trend side without being overbought.
It is the probability of the market trend that makes us have the possibility of profitability. The uncertainty of the market is probabilistic, and at the same time, there is uncertainty in the probabilistic trend.
Three ways to determine profit
The above mainly explained the two characteristics of the market, the uncertainty and probability of the trend.
The purpose of analyzing these two characteristics is to allow netizens and students to further understand the market, and at the same time know what the essential trend of the market we face in trading looks like.
Here comes the point, how can we make money with certainty in this uncertain and probabilistic trend?
To make money with certainty, you must fully apply probabilistic features and try to overcome the adverse effects of uncertainty. Simply put, it is to do trading opportunities with higher probability and less uncertainty. How to do this:
1: There must be a system that can analyze and judge the market trend with high probability more accurately.
2: This system must also be able to accurately judge the timing of entry with higher probability, better risk and reward, and objective instructions for reasonable liquidation.
3: Waiting for opportunities with a higher probability to appear patiently and decisively in execution. Trading opportunities with a high probability will not be available all the time. Sometimes you have to wait for a few hours and sometimes you have to wait for a few days. During the waiting process, you must be able to be neither anxious nor impatient. When a high-probability opportunity arises, you can decisively close your position and seize the opportunity.
4: Don't do transactions that are incomprehensible, difficult to trade, and high-risk. If you don’t understand it, it means that your system cannot judge and analyze the trend of the market with high probability. The most difficult transactions are those transactions with extreme rapid market fluctuations or counter-trend corrections. The high-risk transactions are those transactions with low probability and large stop loss requirements.
To make money with certainty, you need to strengthen your own trading literacy on the basis of clearly seeing the nature of market trends, knowing what to do and what not to do, and resolutely implement it.
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