The difference between winning investors and losing investors
90% of investors are losers, and the remaining 10% are winners. I think losing investors trade with the same market view as the majority, while winning investors trade with the market view of the minority. If the majority of investors are all optimistic, it may be a peak, so profit-taking should occur. Conversely, if there is widespread pessimism, it may be the bottom, offering a chance to build new positions.
The majority buys even when optimism is endlessly rising. The minority, sensing a possible peak, warns and closes out. Even though both groups are looking at the same chart and making opposite judgments, it’s a mysterious difference (o^-')b
Investors who can read the intent of manipulators from price movement and manipulators who can move price are the winning and minority in the market. If you can read manipulators’ intentions from price movement, anyone can become a winning investor.
The market isn’t so sweet that amateur investors can easily see through it.
Why do the majority lose? Perhaps it’s inevitable for those who don’t understand the cause. But this is simple: financial markets are controlled by manipulators. To make money, they must trap individual investors. In other words, after observing the supply-demand balance of individual investors, they push price movement toward killing the majority in hindsight—this is the manipulators’ basic tactic.
Of course, you don’t have to believe it... but this is reality. If you follow price movement in real time for about three years and analyze it continually, an ordinary person can read the adult’s motives (゜◇゜ )ノ
Capital management is important too. Even if you can read the adult’s motives from the chart, if you neglect risk management and manage funds carelessly, you will certainly go bankrupt in the future. Risk management means thinking up investment rules necessary to earn, testing them repeatedly, and trading mechanically and calmly according to a personal, perfected rulebook.
Seminar instructors, investment consultants, analysts, market insiders, and media statements are mere bait to trap individual investors. By the way, senior VIP members of investment advisory services truly have access to profitable information, which is a secret ( ..)φ note notes
Why? Because my teacher taught me that (〜)ノ
The job of seminar instructors, investment consultants, analysts, market insiders, and media is to stoke gambling instincts. Many insist investing is not gambling, but when you invest large sums and fail, it can deal a fatal blow and end your life. So, to all, it’s undeniably a dangerous form of gambling.
Sharpening gambling instinct and cultivating nutrients that keep feeding the winners is the financial industry's goal. The nurtured individual investor trades easily toward dreams. Even when in a loss, they escape reality and hold on, believing they’ll be saved. They endure until the limit is reached, then are forcibly liquidated. The market is cruel.
Since the financial industry’s aim is to lure others into a money game by sharpening gambling instincts, investors who want to earn through financial trades should understand the market’s essence to avoid being exploited by manipulators.
In the financial markets, it’s important to consider supply and demand with the absolute rule that there are counterparties, examine past price movements technically, and think through personal investment rules so that risk and return are clear. If you can trade mechanically according to your own rules, even beginners can earn.
What?! You still lose even while following your investment rules?
That’s because of insufficient backtesting of past charts (゜◇゜ )ノ
Successful investors design rules so that their total net gain after 100 trades is positive, and trade mechanically and calmly. There is no guaranteed攻略法 (magic method). It’s about using low leverage to limit luck’s influence, and trading according to a self-developed investment rule.
You understand that investments collapse when driven by emotions (゜◇゜ )ノ
Let’s think about the meaning of stop-loss.
Winning investors do not hesitate to cut losses when needed. When opening a position, they also anticipate how price movement might unfold if they get trapped. When movements are unexpected or trapped, the winning investor promptly cuts losses.
Losing investors, out of a desire to be saved, lose their calm and cannot cut losses, watching losses mount in disbelief and dying as they hold on. Why can’t they cut losses? When a stock they bought is rising, they may fear their analysis is wrong, so they seek comforting signs to avoid realizing the loss.
If you’re a winning investor, you might consider adding to a position when movements are within expectations, but you will never cut losses to the extreme. Of course, if movements are outside expectations, you’ll close out quickly.
However, losing investors, while admitting their analysis might be wrong, refuse to admit the unrealized losses, escaping reality.
And they endure in frustration until forced liquidations occur.
Then they desperately search for reasons that justify their analysis and come to believe they’ll be saved if they don’t cut losses.
Investors who cannot cut losses fall into darkness and perish.
I am sure I’m not wrong. The financial market is the one that’s wrong, so there’s no need to cut losses. The stock price will rise again. They convince themselves that good news will come and cause prices to rise, and they act to feel secure. The more a person cannot win, the more they justify their own decisions. Investors in this mental state are losers and are at high risk of going bust in the market, so beware.
Then... why can winning investors cut losses without hesitation?
Because they trade with stop-loss expectations from the start, so they don’t panic or hesitate. When they open a position, they clearly and numerically anticipate the stop-loss conditions ヽ(゜◇゜ )ノ
With such price movements, you cut losses because you’ve been trapped by manipulators, or you interpret chart follow-ups to read manipulators’ intentions and honestly admit you were wrong.
Candlestick movements clearly present supply and demand balance, right (laughs)
As you gain market experience, you naturally learn to judge support and resistance. Consider supply and demand of market participants, and be mindful of the majority and minority.
Investing is a pure money game. Even if the majority supports it, when the minority has greater overall financial power, minority investors can freely manipulate price movements, so the majority inevitably loses. This is the irrational, unfair price movement that losing investors feel, the real reason why they are trapped while calling it fake and fake.
The victory or defeat in financial markets is decided not by majority vote but by the total military funds’ fighting power in the world.
Priced-in, not priced-in—a metaphor that these are all post hoc theories explaining price movements by the minority’s abundant funds.
Materials priced in leading to sharp rises, or good news priced in causing steep drops, or bad materials not priced in causing a crash, or good materials not priced in causing a surge—these are all post hoc reasons and merely fantasies.
Seminar instructors, investment consultants, analysts, market insiders, and media present late explanations to inflame investors’ gambling instincts. See, I told you so (゜◇゜ )ノ
Their job is to speak in hindsight theory and inflame gambling instincts, so even when bad news is released and causes a crash, the market often recovers immediately and trends upward afterward. This is because manipulators moved the price.
Analysts pompously explain price movements after the fact to inflame gambling instincts, continuing to exploit individual investors (o^-')b
There are buyers who want to buy, so you can sell. There are sellers who want to sell, so you can buy. Even terrible bad news does not necessarily lead to aCrash.
That’s why I believe you can evolve into a winning investor by habitually comparing the majority’s and minority’s market views. Listen to the voice of mature motives in the chart (o^-')b