Because any investment profit comes from the positive movement of the price along the investment direction, any investment loss comes from the reverse movement of the price along the investment direction, investors will naturally pay most attention to the direction of the price movement, and judging the price trend will naturally become the primary homework for investors' analysis. At present, most books on investment skills are mainly based on various analytical methods, which also strengthen investors' awareness of "direction" and "trend" to a considerable extent. Because most people, funds and methods involved in the market represent the inherent requirements of the wrong market, most people's habitual behavior of focusing on confirming the direction or trend is bound to be inefficient. Further inferences are as follows:
Inference 1: The market will try its best to prove the popular view wrong.
Inference 2: The market will do everything possible to prove that the popular operation method is wrong.
Inference 3: The popular application of basic analysis methods developed from the traditional economic theory based on the basic principle of supply and demand is inefficient in the securities and futures market.
Inference 4: The popular application of traditional technical analysis methods is inefficient in the securities and futures market.