Trend Investment: Seeking the Sword
The so-called trend investment is to guide operations according to various technical indicators. In my opinion, all technical indicators are the summary of past K-line experience. Past situations may repeat themselves in the future, or they may change. For example, before 2010, a very simple moving average system was very effective, but this situation changed a lot after 2010. That was because a major event happened in A-shares in 2010. One-share index futures were launched, and you can short them. The stock index futures have had a great negative feedback on the stock market, making the K-line more complicated, and the effect of the simple moving average has declined.
In addition, even if a certain technical indicator is particularly effective and everyone believes it, where will the opponent's market come from? Therefore, the more effective technical indicators are in the past, the more people believe them, and the faster they will become ineffective.
So far, no single indicator has unified the world, and this is the reason. This paradox is something that no one expected. Therefore, I have been investing for 10 years and I don’t believe in the nonsense in the market that the so-called buying and selling points marked with point S and point B can make a profit. This is a bit similar to Zhao Kuo’s paper talk.
Even if it is effective in the short term, it cannot last long.
Any technical indicator is not the "Holy Grail". Trying to find a sword at the end of the day will bring unexpected losses.
