What is the end of trading?

Buffett had already studied technical analysis and the stock market very thoroughly at the age of 19 and 20. Buffett said that smart people should try to avoid using technical trading. Technical analysis varies from person to person, much like the basic technical indicators MACD and RSI; everyone has a different analysis and understanding of the same indicators. They are not applicable to all market conditions, and if trading were that simple, everyone would be rich.

Trading may be somewhat like warfare, where the opponent is always changing. You have many tactics, and for different enemies (market trends), you can provide corresponding strategies, rather than being led by market emotions, panicking, and losing your composure. Livermore was right: 'There is nothing new on Wall Street; whatever happens in the market today has happened before and will happen again.'

The main forces can draw lines, but the opponents of the main forces are also main forces. If they do not follow economic laws and historical cycles, they will be targeted. You see top financial sharks and countless hedge funds suffering defeats in the market, so sometimes one should not think that people can completely control prices and dominate the market. There are no two identical leaves in the world, but leaves must go through spring, summer, autumn, and winter—prosperity, withering, and returning to the roots. The main forces cannot escape the natural laws of life, aging, sickness, and death.