Why investing requires strategic thinking?

Author: The Little Dream, Created: 2017-01-13 18:43:41, Updated: 2017-01-13 18:44:05

Why investing requires strategic thinking?

The Internet is spreading fermentation, the heatwave from rise to climax is very short and the choke rate is rapid. This means that the duration of a campaign is very short, and most of the time it needs to move quickly.

  • 1, for big money, this requires a very high degree of foresight, while for non-big money, it can be an advantage:

    1. A relatively low requirement for pre-judgment accuracy and flexible input/output 2. Reduced operating time and lower error correction costs

    The first layer of strategic thinking is to play the advantage.

  • The stock market is one of the pools of capital, and how competitive it is compared to other alternatives, how monetary policy, the intentions of managers and cultural habits, etc., determine whether or not outside rational capital has an incentive to enter.

    For example, how many IPOs in 17 years, how much outside funding is needed to drive an IPO, under what circumstances an IPO will slow down, Trump's impact on the situation, what impact the recovery of stock index futures will have, whether the current market location attracts outside funding, how other funding hedging channels are profitable, whether the real estate market is still profitable, and how competitive the stock market is in relation to their hedging needs.

    The second layer of strategic thinking: consideration of the larger environment.

  • The short-line operation is based on the opportunity to shoot a high-odds and high-win odds, thus generating a profit.

    In the deep market, inevitably there is an obsession with technology and models, hoping to be a victorious general, any opportunity to seize.

    The use of a tactic that produces a high premium of odds and winning only if it is based on a resonance assumption requires consideration of whether it can resonate in the moment and whether it has a benchmark effect.

    Tactics are about winning, while strategy is about balancing, that is, whether it is possible to win cheaply in the long run in a relatively stable environment. In a stock market environment, the wait for short-term opportunities is not too long, good strategies are profitable in the long run, and net worth growth is also considerable.

    For example, the South China Sea disputes, the strategy of joint development of the dam, as opposed to small countries, with our technology, the joint development is clearly an advantage, is a strategic strategy.

    So, the pursuit of short-term defeat is not important, what is important is whether you can prolong the time, win the crucial battle steadily, and follow the tactical strategy.

    The third layer of strategy is to find a balance in self-control. Learn to let go, the true spirit of the stock market is beyond poetry, when not obsessed with conquering it, but rather to drive it. When the heat is on, be a follower; when the heat is on, go up smoothly, save your strength, avoid retreating, not fight to win.

  • 4 When the policy, fundamental, technical, thematic and emotional aspects resonate, it is very important to grasp the magnitude of the emotional inertia, which means the need to pre-judge the upper space.

    Emotional inertia is about considering the approval of the funds, the take-over, whether there's a single potential buffer above, whether the position has reached an irrational position at this point...

    It is useful when looking at the K-line's eye-focus in order to observe the psychological state inside and outside the field through price tracking. Every tactic, every technique, reflects the unchangeable inertial thinking of the people who use it.

    The fourth layer of strategy, speculation and analysis, is the motivation and intention for in-field and out-field funding. If one buys a stock without ever considering the upper space, without measuring the risk-reward ratio, the result is: taking a big risk and going to the fire.

  • END

    We learn a lot of complex techniques, we constantly add up the operations, but sometimes we lose ourselves. So we change the perspective, we reduce the burden for ourselves, we stand in a higher position to think and understand the market, and the mindset opens instead.

    Finally, I would like to say that the shareholders are a difficult group to be recognized at the moment, and even some people say that this shareholder cannot work, but in my opinion it is not impossible. In the contact trainees and gold powder, everyone has confidence in the future and perseverance in belief, many times the degree of desire for knowledge and the spirit of diligence made me see it as a motivation, this is also the motivation for our training in thinking about money.

Translated from the original by Siddhartha Gautama


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