Why do investors like to focus on active and passive trading?
Let's look at a traditional conceptual text about the order: "-active order and passive order." Passive orders only reflect that the stock price is too high or too low. Only active orders are the fundamental driving force for moving value. It can be seen that active orders are made by long-term traders, while passive orders are the concrete embodiment of short-term traders. Active trading refers to the strategy of buying and selling in a planned way. Only when the price is lower than the value will the active purchase appear. When the price is higher than the value, there will inevitably be active selling. Therefore, active trading is the real driving force of value change. When active buying comes into the market, the value area will naturally move up, but when active selling appears, the value area will inevitably decline. Mastering active trading is equivalent to mastering the pulse of long-term traders, and naturally taking a downwind boat will make more profits. Passive trading refers to passively chasing up and down with the change of stock price, which has little influence on the change of value-"(Note that the active and passive trading mentioned here does not refer to the trading orders with small arrows in the direction prompted by the stall trading software. ) reactive trading is aimed at the market for a period of time. Then the relativity of this time period can not be ignored. Active trading is to guide the price to expand. But these people who enter the trading kingdom will only be fooled by them for a long time in the fog. The traditional division of long and short forces can't help you understand the market well. Long-term trading and short-term trading are also relative. The more principled the concept is, the more rigid the content is. Any concept in the market should take into account the relativity of time factors. Any concept is antagonistic at any level. Otherwise, we can't deeply understand the price movement. If you can understand that situation and dynamics are a relatively unified set of concepts. The essence of this unity of opposites exists in every concept of the market. Then corresponding to this meaning, the active order is the order that occurs in the dynamic stage. Similarly, passive buying and selling takes place in the situational stage. But this is also a metaphysical analysis of the market mechanism. There are two kinds of people who write books. A person who knows a lot about trading but lacks the ability to build a theoretical framework. So the summary can't convey his original intention well. There are many conceptual mistakes. As the saying goes, it is wrong to say it. But readers can also find some valuable food. There is another one that is even more irritating. The speculation theory they know very well may not understand trading at all, so they basically set up his trading theory building there with their eyes closed. In fact, they don't understand the essence of price fluctuation, and it is not so easy to explain it only with abstract theory. They have great courage to define it. Because they have a theory generator. As long as you shake the rocker, the laws and principles of things and novel trading ideas are produced just like noodles. There are many such books in the bookstore. It's not easy for novices to tell the difference. In short, what I want to say is: learn trading through trading, not using theory.