On the first Friday of every month (non-farm night), or during the few minutes when the US CPI data is released, there is always a fanatical atmosphere permeating the trading circle. For novices, this is the temptation of "getting rich overnight"; but for veterans, this is often the beginning of the "meat grinder". WMAX found through a large amount of review data that the vast majority of retail investors’ losses were not caused by misjudgments of trends, but by mistakes in judgment."Data Trap"inside. Today, we will provide an in-depth analysis of why the big market is a novice killer from the perspective of behavioral finance and micro market structure, and why following experienced traders is the best solution to avoid this risk.

1. Three “must-die” logics for novices

Why do novices always tend to lose money when major data such as non-farm payrolls and CPI are released? There are three insurmountable physical and psychological traps behind this.

first isThe Gambler's Fallacy of "Betting on the Direction". Novices often believe that by analyzing previous values ​​and expected values, they can accurately predict whether the data will be positive or negative. However, the market has already digested expectations in advance, and the moment the data is released, a drama of "buying expectations and selling facts" is often performed. You think good data means it will go up, but as a result, the price first skyrockets and wipes out the long stops, and then plummets like a waterfall, slapping both sides in the face.

followed byUnderestimating the “liquidity vacuum”. Market liquidity was extremely scarce in the first few seconds after the data was released. At this time, in order to avoid risks, the quotation dealer will widen the spread (Spread), even up to 10-20 times the usual level. Novices often ignore this point, and the orders they put up either cannot be filled, or they are filled at extremely poor prices, and they have already lost a lot of money before they start making money.

finallyThe instant strangulation of leverage. Novices tend to relax their vigilance before big market trends and enter the market with heavy or even full positions. Under the leverage of 1:100, as long as the market moves in the opposite direction by 1%, the principal will return to zero. The market data often fluctuates by hundreds of points. This kind of violent sweep can trigger liquidation in an instant, without even giving you a chance to regret.

2. Veteran’s “anti-humanity” survival rules

What is completely different from novices is that experienced traders (i.e. high-quality signal sources on WMAX) show amazing discipline and tactical literacy when facing big market conditions. They know that short-term disturbances in the data are noise, not trends.

The core of their strategy lies in"Breakthroughs and Confirmations". Senior traders usually do not "bet" on one side a second before the data is released, but will make arrangements in advance."Breakthrough Strategy"or"Shock Convergence Strategy". More importantly, they understand"Liquidity Management". They know that the market can experience huge slippage within seconds of the data being released. Therefore, they will strictly control their positions and even close their positions in advance to avoid being traded with extremely poor quotations by the system during the liquidity vacuum period.

They use complex algorithmic models or years of market experience to quickly identify the main thrust of the market within minutes after the data is released, and follow up accurately after the price confirms that it breaks through key resistance/support levels. This kind of grasp of "rhythm" is the secret of long-term survival of traders on WMAX, and it is also the essential difference between them and ordinary retail investors.

3. Leverage your strength: How the WMAX follow-up system can help you "dimensionally reduce the attack"

For ordinary investors who do not have professional macro analysis capabilities and millisecond-level reaction speed, operating the big market trend by themselves is tantamount to running into a hail of bullets with bare hands. At this time, WMAX’s follow-up function is your best “body armor” and “submachine gun”. Through WMAX, you don't need to understand complex macroeconomic models, nor do you need to keep an eye on the calendar to calculate data release time. You only need to screen out those traders who have performed well in major historical markets and have strict risk control, and click "Follow".

When a big market situation comes, WMAX's system will synchronously copy the trader's operations to your account at millisecond speed. This means that while novices are still hurriedly entering passwords and struggling with the number of hands, you have already completed the layout with the help of the power of the "scythe". Traders will handle complex issues such as slippage, spread widening, and liquidity outages for you. You are actually renting the "brain" and "hand speed" of top traders through the WMAX platform. This is not called "lazy", this is called using socialized division of labor to achieve "dimensionality reduction strikes". At WMAX, we make complex games simple and give every ordinary user the opportunity to stand on the experienced side.

4. Review and screening: How to find “generals” who can fight tough battles in WMAX

Not all traders can escape from the big market. WMAX is well aware of this, so we have established a strict screening mechanism to help users find the real "generals" before and after data release.我们建议用户重点关注那些在"Periods of high volatility"(such as non-farm night, Federal Reserve decision night) traders whose historical performance is still stable and have excellent retracement control.

On the trader details page of WMAX, you can clearly see the net worth curve performance of each trader in the past several major market trends. What we're looking for is that"Advance to attack, retreat to defend"Type: being able to hold on to principal when the data is chaotic, and making huge profits when the trend is clear. At the same time, using the "simulation copy" function provided by WMAX, you can observe whether a trader's operating style matches yours during the non-agricultural or interest rate decision period in a zero-risk environment. Only after such rigorous "practical exercises" can you stand firmly behind him when the real big market comes. WMAX does not create myths, we only provide tools to filter them.

Conclusion:

The big trend is the touchstone of the market. It tests not only the effectiveness of strategies, but also the weaknesses of human nature. Instead of worrying before every data release, it is better to join WMAX and let experienced traders overcome the difficulties for you. Remember, in this zero-sum game market, if you don’t want to be a leek, you must learn to stand on the side of the sickle.