From ignorance to initiation, many retail investors eventually embark on the path of technical stock trading.

However, most people will encounter a hurdle, which is that the more technical knowledge they acquire, the more they lose.

Originally, they might have bought the wrong stock and lost 20-30% over a few months, but now, they can lose 20-30% within a week.

Of course, technology won't make you lose everything at once; occasionally, you will make a little money.

But overall, on the road of learning, the more you lose, the further you go.

As a result, some people will feel that learning technology in the stock market is ridiculous, as if it has no use at all.

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In fact, it's not that technology is useless.

But most retail investors learn the skills but fail to understand the art.

Technical theory seems simple, just a few words, but in practical application, it is a very tortuous path.

Many people learn technology by reading some books and looking at some charts.This approach is very one-sided because what is excerpted from the books are all successful cases, without any failure cases.

In reality, there are not a few cases where technology fails, and many times your buying and selling points just happen to be in the situation where technology fails.

That is to say, there are main forces that specifically use some methods of technology to deceive other funds to take over the plate.

Technology has naturally become a double-edged sword.

Or the truth is that technology also has high-level and low-level, and high-level technology starts to cut the leeks of low-level technology.

There are many situations in the technical face, and technology itself is also a very demanding thing, which requires a lot of conditions to be met to be effective.

Let's talk about some truths about technology.

Firstly, the larger the capital volume, the more effective the technical face.

The situation of changing three views with one Yang often occurs.That is to say, many technical aspects can change due to market fluctuations within 1-2 days.

However, these situations are only limited to the scope of small capital.

For stocks that trade tens of millions of dollars every day, any situation is normal.

Because a small amount of capital can change the technical pattern in the short term, and the original technical aspect naturally becomes invalid.

But the whole market, such as the index, is very difficult to change, or there is no capital that dares to change it.

The index is the result of the collective efforts of all capital, and capital can only respond according to the trend of the index.

Therefore, many technical studies specifically on the index have a much higher accuracy rate compared to individual stocks.

Secondly, technology is subordinate to the market, and capital decides everything.

There is a fatal weakness in the use of technology by retail investors, which is to find reasons for technology.

For example, the technology has already broken through, but it always feels that the performance is good, and there are reasons for the rise.The breakdown of technical analysis does indeed sometimes involve deceptive lines, but if it cannot be recovered within 2-3 days, then it is an effective breakdown.

Technical analysis itself must always be subordinate to the market; it is the ultimate choice of capital, not the result of speculation.

For example, a listed company may experience an irreversible performance collapse.

No matter how good the technical patterns are, they can be instantly changed and begin to decline.

Capital is the boss in this market, and technical patterns are drawn by these funds.

Therefore, technical analysis itself is a result, while capital is the fundamental cause that determines everything.

Thirdly, sudden events cannot change the trend.

In technical analysis, there is an absolute focus called the trend.

Sudden events cannot shake the trend because it is built up by a large amount of capital, which is above short-term technical analysis.Unless there are some irreversible bearish factors, the main force would not be willing to deliberately change its trading direction.

The trend itself is also a trading technique.

It refers to a form of potential energy formed by capital, which will not change due to short-term fluctuations.

The effectiveness of this potential energy is because the trend itself is a superposition of techniques, which is the direction formed by capital after the game.

And the suddenness means that all the capital is not prepared, their trading methods and techniques are all temporary.

The temporary strategy itself will, after a brief divergence, once again form a unity and continue to conform to the direction of the trend.

Fourth, the longer the cycle, the stronger the effectiveness of the technology.

Technology needs to be matched with the cycle to complement each other.

The shorter the line technology, the higher the probability of failure.

Because the longer the cycle, the slower the capital operation, it is less likely to go against the trend.Breakthroughs at the weekly and monthly levels must be more reliable than those at the daily level.

Technical analysis over short periods can easily be deceptive due to sudden factors and deliberate washing of the market by the main force.

However, the main force's washing will not target long periods, such as weeks or months, as the difficulty and cost would be too high.

Therefore, the uncertainty of short-term technical analysis can be compensated by extending the period.

Or by using the regularity of the period to make technical hedging, achieving a certain technical arbitrage.

Technical analysis itself is a matter of probability, and seeking technical effectiveness with a high probability is what should be done.

Fifth, the artificial technical face must have flaws.

Many technical aspects are artificial and deliberate, not the result of the market's collective force.

Such technical aspects must have flaws.

Just like, if capital does not take over at high levels, it must be thinking about distributing at high levels.The article should be translated into English as follows:

It must show signs of capital entering, boost stock prices, attract followers, and also distribute shares.

The main force is so busy that there will definitely be a reflection on the technical side.

If the volume is insufficient, it will deliberately make up the volume by matching trades.

If there are not enough followers, it will repeatedly fluctuate and pull out a big positive line to attract them.

If no one takes the position, it will raise the line and then desperately smash the market, distributing the chips through retail investors' replenishment.

All kinds of artificial technical aspects will eventually have some distortions, reflecting the intentions of some funds, which is the key.

Look at the chart, but also look at the capital intentions behind the chart.

Learning technology from practice and summarizing the experience of technology is the best way and method.

The knowledge deliberately written in books is not ineffective, but it occurs in specific situations.

The stock market is repeating many rules, but there are subtle changes between the rules.Even if the patterns are the same, the volume can be different, and the situation will be different.

Even if the patterns and volume are the same, the stages can be different, and the outcomes will still be different.

If you can't interpret the true intentions of the main force from the technical patterns, then everything is in vain, because what you see is a dead thing.

Any technical pattern is manipulated by people.

Technology is dead, people are alive, so the result is uncertain.

Why should the position be divided when the capital volume is large, because there will always be situations beyond cognition.

Risk control is also a very important part of stock trading technology, but retail investors do not have a sufficient understanding of it.

Under the support of half-baked technology, it is almost impossible to go far.

Only through a long process of technical precipitation and market baptism, it is possible to obtain a good investment return with the assistance of technology.