There is an allusion in the investment market: "Big Fish eat small fish", which tells that in the securities and futures market, large institutions always try their best to make small and medium-sized retail investors their lunch. The game in the securities and futures market is represented by maritime competition law, which can also be referred to as maritime law for short. In maritime law, whoever has the biggest mouth is the winner, so there is no saying that small fish eat big fish. Small fish eating big fish is like a snake swallowing an elephant. It's incredible and certain to die. In the eyes of ordinary investors, the strength of institutional investors is unmatched by small and medium-sized retail investors, so the securities and futures market embodies the law of the sea. Not only small and medium-sized retail investors will be eaten by large institutional investors, but even the government will sometimes be swallowed up by large institutional investors. Soros's quantum fund will not even let go of the British government. Such a big fish will become a crocodile and become more fierce.

In the securities and futures market, the phenomenon of "big fish eat small fish" does not mean that small fish or small funds can't compete with big funds. The sum of funds of small and medium-sized retail investors is also quite amazing. The reason why they lost to big institutions is disunity, inconsistent goals and inconsistent will. These are the weaknesses of small and medium-sized retail investors and are destined to become the targets of large institutions. Some people may say that large institutions make money because there is a market, and they have grasped the direction. It is a fact that the market is inevitable. The problem is that the market does not always exist. The time of the big market is less than 1/3 of the trading time. Large institutions often take small and medium-sized retail investors as the game object, and the phenomenon of "big fish eat small fish" is very common.

When will the big market appear? Due to asymmetric information and uneven strength, it is extremely difficult for small and medium-sized retail investors to grasp the big market because of the existence of large institutions. Even if they grasp the big market at one time, the profits gained from the big market will either be swallowed up by the failure of the small market or offset by the losses of the small market. However, the phenomenon of "eat small fish the Big Fish" is not as simple as imagined. Small and medium-sized retail investors do not mean that they can be eaten if they are eaten. If they don't participate or actively participate, the big fish may not eat anything. How to mobilize the enthusiasm of small and medium-sized retail investors and make them make more tactical mistakes has become a problem that "big fish" are trying to consider. Many times, the market is directionless, but the "big fish" should create an illusion and let the "small fish" follow suit. As William, a short-term speculator, said, the market will not kill our fighting spirit, but it will consume our accounts. Constant follow-up and stop loss consume the precious time of "small fish". Although some small and medium-sized retail investors can grasp one or two big markets, their profits have been washed away by repeated opening and closing positions. Big market can make a lot of money, but many small and medium-sized retail investors have already consumed funds in many stop losses in the illusion of chasing big market. For small and medium-sized retail investors, an opportunity to grasp the profits of the big market is like an elephant that falls with a bang, but it is helplessly eaten by the losses of the small market, that is, small ants. Some people may say that this statement is incorrect. Small ants eat elephants because they have a common goal of unity. But in fact, the performance of small and medium-sized retail investors is comparable, and their consistent goal is to make money. Large institutional investors not only know the natural advantages of the ocean law of the market-"big fish eat small fish", but also use the forest law of the market to let small and medium-sized retail investors give full play to their weaknesses of timidity, greed, eagerness to make big money and impatience. By constantly adjusting the market, they will release countless little ants in their minds and eat their precious funds and profits.

One problem of systematic trading is that it is not easy to find a solution of "ants eat elephants" and it is impossible to avoid the forest law that exists in the market. The profit of the system exchange comes from grasping the big market, while the loss partly comes from the wrong judgment and partly from the adjustment of the market. Limited by the parameter cycle, it can't keep up with the short-term fluctuation of the market. The solution is not without, but its trading loss proves the existence of the market forest law from one side.

Short-term experts are different from ordinary small and medium-sized retail investors. They don't imagine that there will always be big market, which is a small market that is difficult to distinguish between true and false, and an asymmetric game between big fish and small fish. So they think that mastering the short-term fluctuations of the market can also achieve great things. They turn themselves into small ants that eat elephants and use their tenacity and flexibility to get the chance to fluctuate the next day. Small and medium-sized retail investors often go in and out in a short-term way, which does not prove that their way is the same as that of short-term experts. Small and medium-sized retail investors are passive, and short-term experts are active. From the perspective of timing, short-term experts and large institutions are consistent or basically the same. Short-term experts are like rat warehouses for large institutions to trade during the day. They get every small profit in time and skillfully, no matter how small it is. Over the years, they have made fewer mistakes and made great achievements.

The law of market forest-"ants eat elephants" can help us understand the characteristics of the market, the fate of small and medium-sized retail investors, and help us understand where the short-term experts are. However, we also found that short-term experts are not noble. His application of forest law objectively made him an accomplice of eat small fish, a big fish, and small and medium-sized retail investors also had a terrible opponent.