On this basis, Soros put forward a theory called reflexivity. The so-called reflexivity means that the participants' thoughts and events are not completely independent. They interact and determine each other, and there is no symmetry or correspondence.
For example, the enthusiastic participation of the investing public will naturally affect the rise and fall of the stock price, and when the idea of rising is formed, it will act on the stock price, but the stock price does not necessarily develop according to the formation trend of public consciousness, and it will often evolve disappointingly. When investors withdraw pessimistically, the stock price may unexpectedly soar and fluctuate.
Soros pointed out that the market is always wrong, and it is impossible for our existing analytical tools to accurately predict the stock price trend and coordinate positions. Because the expectations of market participants are biased, and this deviation affects the process of trading activities. It is not that the present expectations are consistent with the future facts, but that the future events are shaped by the present expectations.
Simply put, there is no strict causality in the operation of the world.
Wei Ming asked that the philosophical concept is "Tao" and the operational skill is "Shu". If there is an unskilled road, it is still alive. No way, no surgery, life is hard; No way, no ability, no death; Means and skills are the last word.
It is under the support of a philosophical concept "Tao" that Soros gained great wealth with "skills" such as risk control and operation skills.
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