Why is it said that in stock trading, one should observe more and act less — "Trigger Conditions"

Everyone has heard of quantitative trading, right? The essence of quantitative trading is to form predictive models through various data, such as minute-level trading volume, rate of increase, MACD, KDJ, the trend of individual stocks, order books (including 60 levels of market data) + external market (advanced market data), etc. These data form predictive models to forecast stock price movements and profit from volatility (feel free to add data types in the comments).

The core of the model is the "trigger condition." When all data conditions are met, a success probability calculation is performed based on dynamic weights, forming a high-probability operation, and quantitative trading is initiated.

This is the core of "watch less, do more" — the "trigger condition." This condition is built upon a self-improving trading system. It moves away from the chasing rallies and selling on dips driven by emotions that most novices engage in; it is pure rational behavior.

The "trigger condition" is the art of patiently waiting — waiting for the win rate, waiting for the arrival of an operational opportunity. It is also the core value of "waiting," waiting for the conditions to be met to initiate an operation.

The "trigger condition" can give every operation of yours a basis and leave room for enhancing profitability. This is also an important reason why I take notes: not to record wins and losses, but to leave traces of thought for operations, facilitating analysis and optimization.

Stocks superficially reflect operational ability, but operation is merely a behavior, a manifestation of thought. What stocks truly compare is the depth of thought, which you can also understand as the depth of cognition. Only when the thought logic is more complete and profound can one find profits in the subtlest clues.

Thought logic must be objective: you need to analyze problems from the perspectives of different operators, such as short-term capital, institutions, retail investors, etc., to find a more objective and rational decision-making direction through multi-angle analysis.

When you establish a "trigger condition," you must be absolutely rational, but you must also incorporate an important piece of data — "emotion" — into the model. This is greatly related to the rate of increase, minute-level trading volume, order books + external market.

Wishing everyone prosperity. I'll write about "quantitative trading" when I have time.

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