The primary cause of loss is the high accuracy rate.

Supermarket principles

In my opinion, one of the most important reasons for large losses for investors is that the accuracy rate is too high!
------ Financial empire
The sales model of the supermarket's last one-time payment option can stimulate consumers' desire for consumption. In the pre-checkout purchase, if one item is paid once, the estimated sales will decrease. Simply put, people are more sensitive to "times" than "quantity. If it is income, then 10 yuan of income will produce a satisfaction level greater than 10 yuan of income once. Similarly, for expenditure, 10 times of 1 yuan of expenditure produce more than 10 yuan of income.
This is also extremely evident in the market. Why is the transaction volume in the bull market greater than that in the bear market? This is because traders are more willing to trade when making profits. This also shows that traders are not absolutely objective, but have a considerable degree of bias. That is to say, traders pay more attention to probability rather than odds.
Although there is a saying on the market that "8 compensation, 2 draws, and 1 earn", the average market accuracy rate is higher than 50%. Although it is impossible for us to accurately calculate the average accuracy of the market, we can use a simple formula to calculate a rough estimate. In the stock market, the sum of the bull market transaction volume/the sum of all transaction volumes = the average accuracy rate of all traders. A strange phenomenon: it is very difficult for me to find a trader with a correct rate of less than 50% among the investors around me! If you don't believe it, you can try to find it.
In my opinion, one of the most important reasons for large losses for investors is that the accuracy rate is too high! Assuming that a shareholder deliberately reduces the accuracy rate when the minimum holding period is two weeks, it is possible to achieve long-term profit. This is not in line with the common sense of the public. Is it true that the loss rate is high?
What is the essence of accuracy? The accuracy rate is not absolutely correlated with the prediction level; it is more correlated with the off-market strategy! Theoretically, even if a random warehouse is opened, the correct number of times can be several times the loss rate as long as the range of the stop loss is several times that of the stop loss rate. The so-called high accuracy rate only means that profits are evenly distributed among many people (times), while losses are borne by a few people (times. From this point of view, the high accuracy rate of the stockholders can only indicate that the "profit is fulfilled, the loss is suspended" hobby is working. Simply put, for a certain amount of profits. Most traders want to make up more profits and less losses, and I want to make up less profits and more losses.
Traders are more willing to determine the profit and escape the loss instinct, just to find a weapon for profit. Again, all trading methods that have the advantage of reproducibility probability come from the asymmetry of human nature that leads to the asymmetry produced by the market. If you treat your losses as the public treats your profits, you will be able to make long-term profits!