Traditional Culture Encyclopedia - Weather forecast - What is the butterfly effect and how to apply it in the stock market?
What is the butterfly effect and how to apply it in the stock market?
It is the butterfly effect applied to the chain reaction of the stock market. ButterflyEffect refers to a dynamic system, and small changes in initial conditions can lead to a long-term huge chain reaction of the whole system. This is a chaotic phenomenon. Butterfly effect is usually used in weather, stock market and other complex systems that are difficult to predict in a certain period of time. This effect shows that the result of the development of things is extremely sensitive to the initial conditions, and the smallest deviation of the initial conditions will cause great differences in the results. The butterfly effect was put forward by meteorologist Lorenz 1963.
Do high throwing and low sucking, pay attention to controlling positions, and set stop-loss and win-win positions.
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