Finally, we come to the last article in this series (Sahua). Looking back on the previous 8 episodes, we introduced the common indicators, common types, and common schools of technical analysis, and also discussed the effectiveness of technical analysis from the micro and macro aspects. , I strongly recommend that those who haven’t read it yet can read it from the beginning, especially Part 8. I believe that no matter how much you understand technical analysis, you will gain something. Thank you for following this series all the way to this point. I hope everyone has learned something at least. If you have any special articles you want to read, you can drop them in the message area below~ Then we won’t talk too much. That said, below we have compiled the healthy mentality you should have when facing the subject of technical analysis:

Only a handful of people can conquer the world with one move

Everyone wants to exchange the shortest time for the greatest wealth. The reason why technical analysis is the first school of thought for many investment novices to enter the capital market is because its learning cost is lower than that of fundamental analysis, and it is also easy to rely on one trick. The sweetness is tasted half way. At this time, it is often easy for people to have the illusion that they have mastered technical analysis, and they are even less willing to learn other analysis methods. Over time, they will be scarred by the lessons of the market. It’s not that there are people in the market who can make money freely by studying technical analysis alone, but there are only a very small number of them. We can’t expect that we will be the one favored by the line fairy, so we might as well learn a few more tricks and select stocks through basic analysis; technology Analyze the timing; analyze the chips and observe the main trends to avoid being deceived, increase your arsenal, and reduce the probability of being cut off. Investing in yourself is the only way to make a profit without losing money.

It is better to have no books than to believe in books

Technical analysis is the application of statistics, which has its own logic behind the interpretation of long and short positions. For example, the moving average calculates the position cost of market participants. You need to understand the meaning behind each indicator of technical analysis, and even be able to draw inferences from one example after understanding the principles, instead of just memorizing what the buy and sell signals look like. The most important thing is to make a profit, rather than being able to write out all kinds of dictation. kind of graphics.

Investment is your own business, and the most important thing is to find the method that suits you best

The reason why technical analysis sometimes fails is because not the vast majority of people in the market believe that a certain pattern or signal should enter the market when it appears. Imagine an extreme situation, if all investors today believe in MACD When a negative turns positive, you have to buy. As a result, when this signal appears, the market rushes in and the stock price surges. At this time, the MACD indicator becomes powerful. Every time a negative turns positive, the stock price will rise 100%. However, this is not the actual situation. This is because The collision of different ideas makes the market unpredictable, but this is also the reason why the investment market is so fascinating. The rewards of successfully catching the trend are immediately visible to the naked eye.

Everyone has different interpretations of the same set of theories. Just like the same line chart, everyone draws different pressure and support lines. There is no standard answer. The key is to find one that suits you and is executable. We can learn from the experiences of other investment gurus and seniors, but we should never completely change our investment strategies and decisions after hearing their one-sided words. There is a saying that "the essence of investment is to realize one's own knowledge." If you want to live in the capital market for a long time, you must establish correct knowledge, earn money within the scope of your own knowledge, and accumulate your own money step by step. Practical experience and assets, don't think about speculation and one-step success, this is the long-term way.