To do a good trade, you must know: the eight characteristics of the market!

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In addition to its most fundamental characteristic of uncertainty, the market also has some more specific features: inclusiveness; the relativity of predictability and unpredictability; the uncertainty of transaction costs and profits; the market is a contradictory unity of stability and contingency; the direct proportionality of profit to trading ability; the combination of randomness and orderliness; the unsolvable nature of perfect trading; and in the long run and development, the non-proportionality of risk to profit.

1. The market has inclusiveness

The market has inclusiveness, and its manifestation is complexity, which is caused by the diversity of traders' trading concepts, principles, models, and methods. The inclusiveness of the market means that all existing trading ideas, theories, principles, methods, and future new ideas, theories, principles, and methods can be accepted by the market. Different trading ideas, theories, principles, and methods all have their value in the market and can adapt to certain aspects of the market, thus having the ability to make a profit. At the same time, any trading idea, theory, principle, or method cannot adapt to all aspects of the market and has its weaknesses and inadaptability. There is no perfect trading. The market can accept everything, but it also denies everything, which can lead to two extreme emotions and attitudes in the market, either blind optimism or complete pessimism and disappointment. Optimists will think the market is very good, with unlimited wealth, while pessimists believe that no method can make a profit, and the market is untouchable! The inclusiveness of the market forms the diversity of the market, and the diversity is easy to make investors confused, unable to find a trading model suitable for themselves. Seeing others make money and then learning their methods, as soon as there is a loss, they immediately change the way, but they always can't find their own direction of effort. The inclusiveness of the market also tells us that others' methods may not be suitable for you, and your methods may not be suitable for others. Everyone's pursuit is different, and their views are naturally different. They cannot be dominated by others in their trading. No one can impose their own methods on others. The kind of thinking that considers oneself the best and denies others' methods is an immature manifestation.

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2. The relativity of predictability and unpredictability

The market is a dialectical unity of predictability and unpredictability, both of which are relative. Relatively speaking, the trend has predictability, while the fluctuations that make up the trend do not have predictability. Trends are difficult to manipulate, and fluctuations are more manipulable; trends are formed by the rationality of the market, and fluctuations are composed of emotions and psychology. Rationality has relative stability, while emotions have contingency. We should not fall into the extremes of predictability and unpredictability. People who trade rationally can do trend trading, and those who trade on inspiration can do fluctuation trading, and investors can choose for themselves.

3. The uncertainty of transaction costs and profits

Investors cannot budget the transaction costs and profits for a year like they do for spot trading, and then execute them. Transaction costs include the fees and losses caused by stop losses. You may have a maximum loss range, but the specific costs within the range cannot be determined; and the trading profit is completely related to the market conditions, the quality of your trading, and many other factors, making it difficult to determine. The uncertainty of the market will directly lead to the uncertainty of profits. Investors should be mentally prepared for this.

4. The market is a contradictory unity of stability and contingency

The stability of the trend has been discussed before, which is the basis and reason for the existence of the market. However, the market also has a great deal of contingency. Changes in policy, the outbreak of war, natural disasters, and so on, will make the market produce a lot of contingency. Contingency for trading is either a windfall or a disaster, and it is difficult to avoid. Investors must face it and bear it.5. The Positive Proportionality of Profits and Trading Ability

If your profits come from luck or chance, or if your profits exceed your level of ability, the market will sooner or later take them back, as this is a characteristic of the market. The market has an inherent sense of fairness, unless you stop trading. Therefore, when you enter the market, you need to seriously consider your level and not set an unrealistic goal for yourself, so as not to be unable to accept the gap. If you have trading ability, profits will naturally come. You cannot rely on luck for trading forever. Profits are directly proportional to trading ability, and there is no exaggeration. The market is the most fair judge. Losses cannot be blamed on the market, and profits are not the market's favor; this is what you deserve.

6. The Combinatorial Nature of Randomness and Order

Trends have orderliness, while fluctuations have randomness. Random fluctuations form an orderly trend, and the market is composed in this way. However, whether to pursue trends or fluctuations is entirely up to you, depending on what kind of market you are suitable for. Do not lose yourself because you see others making money and feel envious.

7. The Unsolvable Nature of Perfect Trading

The characteristics of the market determine the unsolvable nature of perfect trading. Pursuing perfection means pursuing failure because your direction of pursuit is already wrong. Once the direction is wrong, the subsequent efforts are in vain. Any theory or model has flaws, and there is no trading without losses. Trading itself is composed of profits and losses. Pursuing perfection is splitting trading, and the market will give you a devastating blow. Investors should give up the idea of pursuing perfect trading, bear appropriate losses as the price and cost of profit, and not set obstacles for perfect trading for themselves. No one can cross this obstacle, neither you nor Soros can.

8. From a Long-term and Developmental Perspective, the Non-proportionality of Risk and Profit

Do risk and profit really have a direct proportion in the trading market? Perhaps in the short term, it is so, but we are not only trading for one or two days, but for the long term. Taking huge risks cannot be traded for a long time because such a loss can be fatal. People who believe that risk and profit are directly proportional have a gambler's heart, and this statement has poisoned the market and investors. Only low risk can develop for a long time and is the real investment behavior. Accounts with huge risks can only be short-lived, and wealth can only come from the accumulation of every bit.

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