Many traders are first-order thinking, that is, when there is bad news in the market, they will not hesitate to chase it. When there is bullish news in the market, they will not hesitate to chase it. This is actually wrong. In fact, there are many skills to understand information. If you don't think deeply, but take a stressful way to participate in the market, it can only be cut off by the market.
First of all, the classification of information is divided into positive and negative. Trading time is divided into expectation and reality. At this time, the first thing we have to analyze is whether the current bullish or bad news affects the near-end reality or the far-end expectation. Is the contract you are trading now in the expectation stage or the reality stage?
Assuming that the current negative impact is expected, and the contract you trade follows the expected logic at the moment, then the disk is easy to accelerate the decline, information and time shake, the negative effect is amplified, and the disk drops sharply; On the contrary, if the contract you are trading follows the realistic logic at the moment, then the disk may give you a chance to get on the bus with the help of bad washing, because the information and time are mismatched, and the bad is only a phased callback, and the disk falls and washes, and then resumes rising after digestion.
Therefore, don't interpret information separately from the first dimension of information, only interpret information as positive or negative, and it is best to add another dimension, that is time. Whether positive information or negative information affects the present reality or future expectation, whether the contract you trade is in the present trading expectation or trading reality, we can simplify it with the following formula:
Expected negative+trading expectation → negative amplification, and the disk fell.
Expected negative+trading reality → negative dishwashing, admission opportunity
Reality bullish+trading reality → bullish amplification, the disk rose sharply.
Expected negative+trading expectation → negative amplification, and the disk fell.
Expected negative+trading reality → negative dishwashing, admission opportunity
Reality bullish+trading reality → bullish amplification, the disk rose sharply.
Realistic bullish+trading expectation → bullish is invalid, falling first and then rising.