Anyone who wants to get into the trading market needs to understand this: in the trading market, any trade you buy is a trade someone else sells to you, you buy because you think the price will go up by analyzing. The other person sells because he thinks the price will go down or the price can't go up anymore and sells by analyzing. The same two people, the same brand, the same market, but with completely different operations and judgments, how can you feel more right than someone else? So a fully competitive financial transaction with zero and zero markets is definitely not a simple industry, even if she has only two moves: buy and sell.
Any purchase or sale you make has a corresponding transaction fee, which can be one-tenth or two-tenths, or it can be a fixed margin, so if you buy a stock for $8 and sell it for $8, you're still at a loss, and the transaction fee you spend feeds a lot of institutions, platforms, government officials, analysts, computer technicians, etc.
In the financial trading market, you win money and everyone else loses money, and it's impossible for most people to make money, up to 50% and 50%.
You can see three types of people in the market:
The loser's money is needed to feed all the winners and third-party personnel, which requires the loser to outnumber the winner both in numbers and funds.
So the loser is the majority of the financial trading market, which is definitely not a simple industry, even if she has only two moves: buy and sell.
Usually we say that the trading market is a zero-sum market, because one side gains and the other loses, just like playing cards, everyone has played, and if you lose, your money is in the pockets of the other three people on the table, more or less.
However, due to the existence of transaction fees, the trading market is actually a negative market, as if four of you go to play a game of cards, and the tea room charges you 15 bucks for each deck of cards, four of you would have a total of 100 bucks, and the total assets of four people may be only 40 bucks when they leave the tea room.
However, have you ever wondered why in a zero-sum market or even a negative-sum market, someone can have a relatively stable and sustained profit?
Because although the market is zero-sum or negative, it is not a zero-expectancy market, trading is like playing cards, but not like tossing a coin, tossing a coin is a genuine zero-expectancy game, no participant can get an expectation greater than zero (i.e. I will not have any advantage over you), no matter what the participant's personality, education, will not speak, what technology, it does not matter, in a zero-expectancy market, the more transactions, the more the funds of the parties to the transaction are maintained on the horizon.
The trading market is not a zero-expectancy market, because people have all sorts of preferences (loss aversion, flood cost effects, disposal effects, outcome preferences, near-term preferences, fixing effects, trend effects, the law of fractions), each of which will cause you to lose money in the market, and the person who can design the system, without being affected by these preferences, will have the desired probabilities, or an advantage over the other participants.
There are advantages, the winning results at the poker table are not random, like two young people of the same age, one is Wang Tsutomu and the other is you, who is more likely to be favored by the boss?
I'm not going to lie to you, I'm not going to lie.