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Quantitative Financial Analysts (AQF) should be careful of the 6 major pitfalls of quantitative trading!

Quantitative Financial Analysts (AQF) should be careful of the 6 major pitfalls of quantitative trading!

Quantitative Financial Analysts (AQF) should be careful of the 6 major pitfalls of quantitative trading!

First, let’s take a look at the reasons why quantitative investors lose money?

1. Reasons why quantitative traders lose money

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1. Not understanding the market

Being too blindly confident in the market and making money After making a little money, I thought I could make big money by relying on market fluctuations. But in many cases, market conditions do not develop as we imagine. Once the market reverses, we may lose all the little money we make or even more.

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2. Blind confidence in their own abilities

Some quantitative trading investors feel that they can make money when they see others making money, and they do better when the market is relatively good. When the market does not go as expected, we may make a loss.

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3. Blindly following others

Some investors have always felt that there is a "Holy Grail" in the market, or have encountered the so-called "Holy Grail" through some channels. "Masters", these masters often claim that their investment performance is very good. Investors follow the footsteps of the masters. As a result, the market reverses and the masters themselves are unable to protect themselves.

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4. Lack of self-control

The reason why many investors lose money is lack of self-control. For example, when the market is good, I can't wait to get out after making some small profits, but I miss a large part of the market later. Or maybe a certain position suffered a loss, but investors still held on to the slightest expectation, and as a result, the small loss turned into a big loss.

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5 , Lack of fund management

We have repeatedly emphasized the importance of fund management. Traders who do not have stop loss and investment scale control may still be able to escape when encountering good market conditions. But once the market changes, if you don't have a correct fund management mechanism and just blindly throw money in the hope that the market will pick up, you will lose more and more and even lose the qualification to enter the market.

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6. Blind investment lacks reflection

Some investors do not reflect on the reasons for their losses when they encounter losses, but always dwell on them. If you cannot find out the reasons for the loss, you will eventually lead to destruction.

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Of course, there will still be some investors who get out of the endless loop. They understand that there is no guaranteed way to make money in the market. We all know that if investors do not regard investment as a hobby, but just want to make money through investment, it will be difficult to achieve a spiritual level of freedom, and they will not be able to adapt to market changes. So some of these quantitative trading investors left the market and looked for the life they wanted to live.