Many investment friends say, what is the use of technical analysis? As long as the teacher's calls are accurate, I just need to follow the teacher's trades, isn't it enough to make money? But I want to say, is this really the purpose of your investment? Just admiring flowers in a mirror, how can you smell their fragrance? A few years ago, I remember when I first grasped the true meaning of technical analysis. At that time, my conclusion was that technical analysis is analyzing other people's thoughts and using their ideas to profit. Later, I felt that technical analysis was studying the main forces to understand their thoughts. Eventually, I realized that whether it's the main force or everyone else, they are just fleeting clouds in the face of the market. Is analysis of the main force useful? Yes, is profiting from others' ideas useful? Yes, but truly explaining and deeply understanding this technical matter is about integrating everything, just like water droplets merging into water; going with the flow is the essence.
I often see some so-called analyses in the market, KDJ, MACD, looking at moving averages, going long above the moving average, going short below the moving average, which seem correct. Furthermore, looking at trends, going long above the 60-day moving average, going short below the 60-day moving average, short-term traders, selling high and buying low, looking at 15 minutes, shorting at resistance and going long at support. In the end, I find that I haven't learned anything, but rather often find it ambiguous and elusive. Most investors believe that losing money in the investment market is easy, while making money is difficult. In fact, it is not that making money is difficult, but that you have not reached the necessary elements to make money. First, you need solid skills; secondly, a good mentality; a strict risk control system; and a bit of luck (including position management and stop-loss settings). Whether it is a one-sided market or a volatile market, you must formulate corresponding operational strategies, just like marching into battle under a military flag, facing soldiers with soldiers, and blocking water with earth. This way, even if unexpected situations arise, you won't panic and can respond calmly.