Stock trading can be associated with chess, gambling, horse racing, music, sports, and sex. - "Memoirs of Niederhof, the Godfather of Speculation"
You can actually learn how to trade stocks from many things, such as:
Guerrilla tactics of special forces in First Blood. (Reduce stock trading size)
The working attitude of a Michelin chef in "The God of Sushi". (Serious stock trading attitude)
The guts of Spartan 300. (It is the courage to admit mistakes, not the courage to go against the trend and buy dips)
The elegant tango dance in "Smell the Scent and Know a Woman". (Stock trading should be rhythmic like a tango)
Insights from the Red Spy in Cardinals. (Have the sharpness of Ye Zhiqiu)
So, today let's take a look at the mundane stock market trading methods that can be learned from the movie "Moneyball".
Face up to the problem you want to solve, in order to win more with less
In Moneyball, Billy said in a management meeting: "You guys aren't looking at your problems at all."
"There are rich teams, poor teams, trash teams in this world, and in the end it's us. It's an unfair game."
Stock trading is also an unfair game. Because there are national teams, large fund companies, fierce hot money, powerful big players, and finally us, we belong to the rubbish among the rubbish.
If you want to win, you must think differently.
Most retail traders just think about buying stocks, or, in other words, just making money. What should I do if I don't even think about the loss?
So, it's time to make a radical change. Because according to the original trading method, it is impossible to win.
How to beat most people in the stock market
Jonah Hill, an economics master at Yale University, said: "To win at least 99 games to make the playoffs, you need to score at least 814 points."
How much profit can you make in the stock market to beat most people? See the image below.
Now you know, you've surpassed 72% of traders without winning or losing this year. If you buy money funds, you can outpace more retail traders.
Don't trade the stock market on your own terms
"Most teams buy players with all kinds of stereotypes, ages, looks, personalities," said the Yale chubby guy.
I often make the same mistakes in the stock market. For example, when you see the stock market soaring, you can't wait to buy it.
It's a mindset. Just buy stocks based on how you feel.
The next time you buy, be sure to fully analyze the market and your own trading records before making a decision.
How to analyze your stock trading records
Fatty from Yale University will watch the video of the game, continuously track the players' game status, and analyze the key to winning.
We should also continuously analyze our own transaction status and records. Here's what I found by analyzing my trading journal, and there are more questions you can ask yourself:
Which stock am I best at trading? I found myself not very good at stock trading, most of the time, the index just went up and I didn't make any money. So index funds are more suitable for me.
When is my best time to trade stocks? Generally, I would pre-set a limit buy order. This avoids buying stocks at will.
What is my best trading method? I'm not good at holding for the long term, I can't stand a long quilt.
What size of funds am I best at? I can't bear the thrill of big money
How much commission will I pay each month? It should be as low as possible, now the market is 2.5/10,000
When should I stop loss? Generally, 10% of the principal will be stopped. If the loss continues to expand, the principal cannot be recovered.
Don't start stock trading for money
Billy ends up turning down the Red Sox's high salary, saying in the film, "I've made one bad decision for the money, and I swear I won't do it again!"
The same is true of stock trading. If you trade for money, you will lose miserably.
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