There is an allusion in the investment market: "The big fish eats the small fish." It tells that large institutional investors take small and medium-sized retail investors as their gambling targets in the securities and futures markets, and always find ways to make small and medium-sized retail investors their lunch.

The game in the securities and futures markets shows the law of ocean-style competition, which can also be referred to as the law of the ocean. In the law of the ocean, whoever has the biggest mouth is the winner. Therefore, there is no saying that the small fish eats the big fish. The small fish eats the big fish.

It is a snake swallowing an elephant, which is unbelievable and will definitely lead to death.

In the eyes of ordinary investors, the power of institutional investors cannot be competed by small and medium-sized retail investors. Therefore, the securities and futures markets embody the law of the ocean. Not only small and medium-sized retail investors will be preyed upon by large institutional investors, but even the government will sometimes be swallowed up by large institutional investors.

Eat, even the British government will not let go of Soros' Quantum Fund. Such a big fish has become a predator, even more ferocious.

In the securities and futures market, the phenomenon of "big fish eating small fish" does not mean that the number of small fish is small or the funds are small and cannot compete with the large investors. The combined capital scale of small and medium-sized retail investors is also quite astonishing. The reason why they lose to large institutions is that they cannot compete with large investors.

Unity, inconsistent goals, and inconsistent will are all weaknesses of small and medium-sized retail investors, and they are destined to become the targets of large institutional investors.

Some people may say that large institutions make money because the market is moving and they have grasped the direction.

This is true. The market is bound to exist. The problem is that the market does not exist all the time. The time when a big market occurs is less than 1/3 of the trading time. Most of the time, large institutional investors take small and medium-sized retail investors as their game targets. "The big fish eats the small fish."

"The phenomenon is very common.

When will the big move happen?

Due to information asymmetry and uneven power, it is extremely difficult for small and medium-sized retail investors to grasp the big market trend due to the existence of large institutional investors. Even if they grasp the big market trend at a certain time, they lose the game most of the time and lose the gains gained from the big market trend.

The profits are either eaten up by the failure of the small market or cannot offset the losses of the small market.

But the phenomenon of "big fish eating small fish" is not as simple as imagined. Small and medium-sized retail investors will not be eaten just because they are eaten. If they do not participate or do not actively participate, the big fish may not get anything to eat.

How to mobilize the enthusiasm of small and medium-sized retail investors to participate and make them make more tactical mistakes has become a problem that the "big fish" are deliberately considering.

Most of the time, the market has no direction, but the "big fish" have to create illusions to make the "little fish" follow suit.

As short-term speculator William said, the market will not consume our fighting spirit but can consume our accounts.

Continuously following the trend and stopping losses consumes the precious time of the "small fish". Although some small and medium-sized retail investors can grasp one or two big market trends, their profits are wiped out due to repeated opening and closing of positions.

Big market prices can make big profits, but many small and medium-sized retail investors are chasing the illusion of big market prices and have consumed funds through multiple stop losses.

For small and medium-sized retail investors, the profits of a big market caught by chance are like the elephant that fell suddenly, helplessly eaten by the losses of the small market, that is, the little ants.

Some people may say that this statement is inappropriate. The little ants eat the elephant because the little ants unite with the same goal. However, in fact, the performance of small and medium-sized retail investors in small market conditions is also comparable. Their unified goal is to make money.

Large institutional investors are not only well versed in the law of the ocean in the market - the natural advantage of "big fish eating small fish", but they also use the forest law of the market to allow small and medium-sized retail investors to give full play to their timidity and greed, wanting to make big money but also being impatient.

Weaknesses, through constant market adjustments, release countless little ants in the minds of small and medium-sized retail investors, eating up their precious funds and profits.

One of the difficulties in systematic trading is that it is not easy to find a solution to the "ant eating the elephant" problem, and there is no way to avoid the forest law that exists in the market.

The profits obtained by system trading come from grasping the big market trends, while its losses partly come from wrong judgments and partly from adjusting the market conditions. Due to the limitation of the parameter cycle, it cannot keep up with the short-term ups and downs of the market.

There is no solution, but its trading losses prove the existence of the market forest law from one side.

There is a difference between short-term experts and ordinary small and medium-sized retail investors. They will not imagine that big trends will often occur in the market. The market trends that often appear in the market are small trends that are difficult to distinguish between true and false. What often occurs is an asymmetric game between big fish and small fish.

, so they feel that mastering short-term market fluctuations can achieve great things. They turn themselves into little ants eating elephants, using their tenacity and flexibility to gain opportunities for day-to-day fluctuations.

Small and medium-sized retail investors often enter and exit the market in a short-term manner, which does not prove that their methods are the same as those of short-term masters. The behavior of small and medium-sized retail investors is passive, while the entry and exit of short-term masters is proactive, starting from the timing.

Generally speaking, short-term experts and large institutional investors are consistent or basically consistent in their moves.

Short-term experts are like the rat warehouses of big institutional day traders. They get every small profit on time and smartly. Regardless of how small it is, they have achieved outstanding results over many years with fewer mistakes.

The law of the market forest - "ants eating elephants" can help us understand the characteristics of the market, understand the fate of small and medium-sized retail investors, and even help us understand where the short-term experts are.