How does human weakness prevent you from making profits?

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The following figure shows two common market conditions:



---The trend of market 1 is simple and direct. The market goes directly from 1200 to 1190. Most of us can easily make a profit of 10 dollars for the whole market. Everyone is in a good mood!

---The trend of market 2 is a bit more complicated. The market first went directly from 1200 to 1185, and then rebounded to 1190. However, our final profit is the same as that of market 1, which is also 10 dollars, which is not less at all; however, our market is quite Although a large number of traders also made a profit of 10 dollars, they were very unhappy, because they watched the profit of 15 dollars turn into 10 dollars due to the rebound, and their mood was quite unwilling. One flew!

In fact, most of the quotations in the market are carried out according to the second method. The direct and simple trend of the first quotation is rare. They racked their brains and used various means to seize all the $15 profit in the second market, which is a typical mistake that many of us know that we should not do but make every day: grasp the top and find the bottom!

The market trend is actually not complicated at all. The market just thinks that the market is sometimes too straightforward and boring, so it plays a small trick on the market trend, and the result is that this little trick confuses the market. Most smart traders easily bring out the weakness of human nature---greed; in fact, the profit of the second market is the same as that of the first market, only 10 dollars, and the other 5 dollars is only 10 dollars. It is just a temporary decoration by the market in order to make the market more interesting (of course, we can also think that this is a test or threshold set by the market for traders), and the market did not intend to regard the $5 as a profit Give it to us, but we want to force what does not belong to us. Even if we are lucky and occasionally get the $5 profit that the market doesn't want to give us, the market will let us return it at a greater price sooner or later!

To give a few more interesting examples, for a sea urchin with a diameter of 10 cm, the sea urchin yellow we can eat is only 2 cm. Does anyone think that they eat too little and want to eat as much as 8 cm from the outside? and the skin and thorns?

For a 100-gram oyster or crab, etc., the actual meat we can eat may only be 20 grams. Does anyone want to eat the other 80 grams of skin and shell?

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Last updated: 09/10/2023 02:08

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