Opponent's mindset in a Zero-sum Game

Today let's talk about a trading strategy that is often overlooked---the opponent's mindset. Everyone knows that every penny earned in trading is a cost of the opponent's cognitive bias. The market itself is a competitive arena of a Zero-sum Game, and there are no gifts without reason.

However, most people rarely consider why the counterpart is selling before placing an order. Why, when they think the price is cheap and choose to buy, does the counterpart think it is expensive and hurry to sell to them?

Of course, you must believe that the opposing side also has sufficient reasons to sell just like you.

So it is said that one should make good use of the opponent's mindset; there is no absolutely correct trade, only unrecognized weaknesses of the opponent. When you place an order, first ask who is on the other side? Why is he dumber than me?

If you find that the provided answer deviates from the reason for your upcoming action, stop first, because your profit essentially comes from capturing your opponent's mispricing.

The market has no win-win situation, only understanding your opponent better than they understand you, staying alert, and always assuming that your opponent has calculated three steps ahead of you.

It's like standing at a crossroads in life, where each person's choices are supported by unique logic. For traders to stand out in the cryptocurrency market, they must learn to speculate on their opponents' motivations, analyze the logic and risk preferences behind their opponents from their perspective, which can help us examine our trading decisions more comprehensively.

Only by doing so can we accurately seize every opportunity in the zero-sum game of the cryptocurrency trading world, move forward steadily, and find our own path to profit in a complex market environment.

‍#交易心得 #零和博弈 #对手盘思维