Many stock commentators often collect various pieces of news to substantiate their judgments, which is quite laborious. In my opinion: when trading stocks, it is based on the objective trend of A-shares, because no matter what the news is, the focus is on the stock market trend. The trend of the stock market reflects the market's attitude towards the news. A market disturbed by various news has an abnormal trend, but it will eventually be dominated by market laws. How to grasp the market trend, whether to study something diligently? This is very important for us retail investors.
Firstly, news in the stock market is indispensable, but not the most important. Ultimately, it is based on the trend of stock prices. Because now the information is developed, for many news, the vast majority of market participants cannot verify the authenticity, and it is even more difficult to judge why such news appears?
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When using news, I generally use the officially announced ones. I do not speculate or guess the unannounced ones, because I don't know, I don't have the ability to know, and I am just an ordinary market participant.
For overly professional financial judgments, such as the trend of M2 data, macroeconomic trends, the prospects of specific industries, etc., there are professionals to do this, and I am not a financial expert.
In addition, over the years, A-shares have not played the role of an economic barometer, and even run counter-cyclically. In a relatively perfect investment market, it is necessary and essential to study some economic data. In a market that speculates on concepts and tells stories, do not use the methods of mature markets to predict, what valuation, what margin, etc., our A-shares do not favor this.
If A-shares were all traded according to valuation and price-to-earnings ratio, dividend ability, who would still make concepts, who would still tell stories, that would be idle and doing nothing. But there are always people who cannot recognize the reality, like to use the set of value investment to decorate the facade, and the result is predictable.
Some people cite the example of Kweichow Moutai. Here, it is not mentioned how many retail investors can afford it, but in the A-share market for more than 30 years, how many stocks similar to Moutai have been produced?Secondly, it is essential to learn technical analysis; this is the only weapon for survival and success in the A-share market.
Claiming that technical analysis is useless is an act of self-deception, akin to plugging one's ears while stealing a bell. Without technical analysis, how would you know if the stock price is going to rise? How would you know the current level of the stock price? How would you buy and sell? I have also gone through this stage, from not understanding to believing in the fallacy that technical analysis is useless, and then resolutely starting to learn from scratch.
Some people often say, "You know technical analysis, you are a technician, you have thoroughly studied the K-line, are you a billionaire?" This is actually a misunderstanding.
Not to mention stock trading, but in daily life and work, what skills do you have? Are you proficient in a skill and doing well in an industry, and have you become a millionaire? Here, technical analysis is a skill in an industry, at least a self-defense weapon for survival.
Moreover, the stock market is about playing with money. There is no room for charity, benevolence, or righteousness here, nor is there any distinction between good and bad. The one who puts your money into my wallet is the winner. In the end, you don't even know how you lost your money. What are you doing in this market? Are you a generous benefactor? How much money do you have?
Even with technical analysis, it cannot guarantee that you won't fall into a trap. This involves human nature issues. This is the stock market. There is no right or wrong, only when you can eliminate self in your consciousness and dare to face reality, things will be much better.
Because the operation of the stock market is not subject to personal will; it is the result of the movement of funds. You come to this market to make money, you need to understand what money is, how it flows, and other things unrelated to money, it's better to explore less. The technical trend of the stock market shows the trajectory of the movement of money.
Don't listen to some people saying that this is from the United States and is not suitable for A-shares. No matter how unsuitable it is, it has been used in A-shares for more than 30 years. No matter how the entire market index is adjusted, the reference is also this set of technical analysis systems. Even the whole world uses this system, and even some specific technical indicators are derived from this system.
We don't say whether it's good or not, whether it can be used or not. According to the principle that existence is reasonable, it can survive for nearly 200 years, which shows that its vitality is extremely strong. After continuous evolution, its practicality and universality are extremely strong.I know many friends, in their spare time from work, are looking at stock trends on their mobile phones, without the time to ponder what stock market technical analysis is. This is a very realistic issue, but I believe that in order to survive longer in a jungle-like market like the A-share market, technical analysis is necessary. At the very least, one should learn a few, otherwise, unprepared, it's easy to fall into pitfalls.
If one is a responsible stock commentator, he would never tell readers that technical analysis is useless. He would earnestly persuade you to learn a bit, because in the A-share market, as a retail investor, only by mastering this skill can you better survive. This is the only skill you can master, and it is free. As the saying goes, even a beggar needs a stick to fend off dogs, yet our retail investors, facing manipulators who are trying to take your wallet, are completely unaware and have no tools to defend themselves. The outcome is tragic.
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