How does Bill Lipschutz integrate the benefits of information?

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"I mentioned earlier that for contemporary traders, the problem of information management far exceeds that of information acquisition. In this case, integrating the information of others who have read, digested, and sorted out their opinions is often more effective, especially if their opinions are different from yours."

"By 'integrating information', you can take care of the information level far beyond what any individual can analyze alone. The benefit of integrating information is not to save work. Personal analysis has no substitute, but to take care of a wider range of information. In addition, the integrated information can incorporate your analysis into 'other opinions', thus providing a safety net."

"One of the difficulties of market analysis is that after you obtain a piece of information or determine the most likely outcome of an event, you have to decide what reaction the market will have as a result. Without the assistance of other traders, it is often difficult to write objective conclusions."

"Therefore, it is important to establish a comprehensive network, where you can understand the different opinions of different people in different countries, especially in the foreign exchange market. Through telephone communication, I learned that different people may have different interpretations of the same news."

"The actions taken or not taken by traders based on these different interpretations will be collectively reflected as market behavior. Before evaluating any position or potential position, be sure to grasp the market's interpretation and reaction to a piece of information."

But remember, never let the analysis conclusions of others replace your own opinions. You have to evaluate the analysis of others, and you can't accept it all without filtering. Never let others analyze for you. In addition, the information you get is "second-hand" or "rumored", so you have to be very careful in handling it, and the focus should still be on your analysis based on direct information. If you cannot handle second-hand information, simply don't adopt it.

Use the analysis methods that you don't use yourself.

"I always use fundamental analysis methods, observe the possible, ongoing, or past macroeconomic and political events, and consider their impact on exchange rates. I don't use technical analysis or graphic analysis, I don't believe in this, and I don't intend to use these skills."

"But some technical analysis traders are quite successful, so there may be some tricks in it. No matter what type of trader you are, you have to understand the market's feelings and master the behavior of those participants who may affect the market."

"If many people believe in technical analysis, based on some reasons such as the moon position, astrology, or God knows what reason, they think that a certain price is important, then you have to know this."

"Because this price may cause many market participants to take action, you have to understand and evaluate what impact your position may have. Therefore, there is no such thing as a good method or a stupid method, and there is no right or wrong method. As long as a specific number of market participants have a certain feeling, the market will change. Within this range, I want to understand the important prices of technical analysis and try to take these conclusions into account."

Therefore, according to Bill Lipschutz's point of view, no matter what your evaluation of technical analysis is, you must at least understand the relevant conclusions, because this will affect your position results.

General Patton once said: "I have been studying the enemy all my life. I read the biographies of their military generals and political leaders, and even studied their philosophical theories and listened to their music. I study every detail of every battle they fought. I know their every reaction in any specific situation. But they don't know when and from which angle I will kick their ass."

"In the final analysis, there is only one rule for trading: 'Everything looks at the money'. You may think you are right. But as long as you can't make money, you are wrong. Everything comes back to one point: 'Smart money is money, stupid money is money'. Even if you are the number one fool in the world, as long as the result of the trade makes money, you are Zhuge Liang."

Although Bill Lipschutz does not use technical analysis, he still uses the relevant analysis conclusions. First, technical analysis represents the ideas of some market participants. Second, technical analysis can be used to determine the timing and price of entry and exit.

"Some traders use technical analysis to assist in determining entry and exit decisions. The disadvantage of fundamental analysis is that it is too broad, and it is difficult to sharpen the pencil and point to 'buy here or sell here'. You have to understand the skills of technical analysis, such as momentum, because many market participants use it, so it may affect the market."

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