The technical analysis that most novices who learn technical analysis and veterans who lose money can understand is to draw lines on the charts that have been completed, or study K-line patterns, combination patterns, etc… and then predict based on the drawn lines and patterns Future trends, and trade based on that. Drawing lines and being familiar with patterns are indeed the basic skills of technical analysis, but if you just stay at this level, you cannot rely on technical analysis for a living. There are countless people who use technical analysis to trade in the market, but how many people do you think are real winners? It’s no wonder that those investors who claim to rely on fundamental analysis look down on technical analysis. They can make money by drawing a few lines, which is too easy and impossible. To be honest, I don’t think it’s possible either.
The line drawing in technical analysis is just for traders to find an operation basis for the order they want to place, nothing more. For example, if you are shorting, you must first draw a line to draw the conclusion that this is a short market, and then draw the line to find out which pressure position is backed to enter the market. This pressure position becomes the stop loss position, and then draw the line to predict the first target position. , the second target position…, probably where the position can be closed with a profit. From the surface, all operations seem to be judged by a few lines, but if it is really that simple, then other professions in this world will be wiped out. In fact, operating transactions with technical analysis is much more difficult than this.
Of course, all professional traders, successful traders, excellent traders… all start from this simplest and unprofitable stage. Countless lines are drawn, and countless pictures are stored in the computer… This is a necessary stage, but if you want to become a trader who can eventually make money, you cannot allow yourself to stay at this stage, because light will draw lines You can’t make money, you have to improve yourself. When facing a chart, in addition to being able to draw the lines one by one, you have to gradually begin to understand these lines. how to say? Just to understand why these lines are formed? How is it formed? Imagine the bunch of people behind the computer, what are they doing? The thread is piled up with the money in their hands, so the only way to figure out what they are doing? What will they do next? That’s the line that really works. For example, before a new low is reached, you can draw a support line with reference to the previous low point, but once the previous low point is broken down, this support line will be broken, right? So, what is the use of the support line? There can be countless such lines, but which one is the real support line? Yes, you have to find the real one, but there’s no use drawing lines to find it, so what? It depends on logical analysis. That’s right, you have to rely on your strong logical analysis ability to judge which thread is the useful one. If you make an intuitive assumption, novices will make mistakes 7 or 8 times, veterans will make mistakes 3 or 4 times, and experts will make mistakes 1 or 2 times. Let’s assume again that no matter what hand, if the judgment is wrong, they will stop the loss. Then the number of stop losses for novices is far more than that of the masters. This is one of them; Field, but it is very difficult for novices to do this, this is the second. Of course, as a novice, don’t blame yourself for not being able to do it, because as long as you are a novice, you can’t do it. That’s right, I couldn’t do it when I was a novice. In terms of trading ability, no one becomes a genius as soon as they play. But in this way, it is obvious who makes money and who loses money. The number of stop losses is too many, the money in the account gradually decreases, and the real opportunity comes, but they dare not enter again. This is the superficial reason why novices cannot make money. However, the deep-seated reason is that they cannot be as capable as experts. Analyze which opportunities are worth trying, and which are not opportunities at all, but traps.
For example, in an upward trend, which retracement is a normal retracement? Which time is an abnormal retracement? This requires anticipation. For a novice or a loser, most of the situations that often occur are like this-every normal retracement looks like a change in trend, so he runs faster than anyone else; It’s like a normal retracement, so I firmly hold it and don’t go. Think about it, isn’t it so sad? Why is this so? Because novices don’t have the ability to interpret charts. Most novice traders look at graphs, K-lines, volume positions, and indicators…but they don’t superimpose all the factors to analyze the logic and reasons behind them. As a result, the thread has become a dead thread. Apart from playing the role of stopping the loss if it breaks, what use is there? In trading, such as the support line, it must be a support after logical analysis to be considered a real support, and it is considered a support if you cannot find the front low line to draw a root line. Stop loss”, then some stop losses, and the money you stop loss is exactly the money that others earn in their pockets.
For another example, we have always emphasized patience. It is necessary to wait patiently for the opportunity to enter the market, and to hold positions patiently. However, many novices or losers are actually very patient. They waited for half a year to make a transaction, but they lost money…; they held positions very patiently for half a year, but in the end they rode the roller coaster three times …, all kinds of failures made them start to doubt, not sure what to do is the right thing to do. To put it bluntly, YSHX if you don’t know what you are waiting for, the so-called patience is nothing more than making you wait for a while before you die. To know what you are waiting for, you need logical analysis ability, and you need to analyze the power behind the K-line.
Fundamental analysis studies the relationship between supply and demand, while technical analysis studies the logic of charts. Every action in trading is a reflection of your thoughts. For example, being long is trapped. Why go long? Because this is an uptrend; why stop loss? Because the stop loss position has not been reached; why is the stop loss position set here? Because there is a support here… Look, isn’t every movement of ours a thought in advance? Well, if you have this idea, others will have their own ideas when doing transactions. Novices and retail investors have ideas, and bosses and institutions also have ideas. The key problem is that your own ideas are actually useless, and the ideas of others, especially those who can influence the market trend, are the key. It may not be one person, yunshfx but a small group of people, but they have a lot of money. When a small group of people with a lot of money thinks the same, what happens? Of course, the large group of people who hold small money will be bloodbathed. This is the law of the speculative market. Therefore, it is very important to understand the thoughts of people who hold a lot of money, but if you don’t know them, how do you know what they are thinking? Of course there are channels, charts, and charts are channels, because you don’t need to know who they are, but you can know what their money is doing through the charts. Where their money goes, their thoughts are exposed; if their money doesn’t move, their thoughts are exposed, right?
Don’t let yourself stay at the stage of drawing lines, try to analyze and understand the logic behind the lines. Combine those technical tools to find the logical thread, and you won’t be blinded by normal fluctuations. You will be calm when you should be calm, Yun Shang Hui Xin Limited run fast when you should run fast, stop loss when you should stop loss, and persevere when you should persist.
