Many retail investors stare at the K-line of the market and stocks every day after the opening, immersed in various ups and downs, trying to predict the trend of the market and stocks only through the K-line, and they are exhausted every day. In the short term, this practice may make money, but it may not be in the long run. Because the market is unpredictable, it is too simple to predict the future direction of the market only by buying and selling for a period of time every day.
The first thing to know is what a K-line is. K-line theory originated in Japan and is the oldest technical analysis method. 1750 the Japanese began to analyze rice futures with yin and yang candles. In Japan, "k" is not written as "k", but as "_" (Japanese pronunciation reading kei). K-line is the pronunciation of "_ line", and the K-line diagram is called "_ line", which is developed from the literal translation of the first letter "K" in western English. K-line is essentially a daily price recording tool. It can record the past price trend, but the future is unpredictable.
We know that Buffett never keeps an eye on the K-line and the broader market. He even said, "If I often went to the movies when the stock market opened, you should have earned more last year." Peter Lynch, an investment guru, always emphasized not to predict the market, because the market is unpredictable. He emphasized that he should know enough about the stocks he bought, instead of rushing to buy things he didn't know. However, many retail investors are often the opposite. They pay close attention to fluctuations, but they don't even know why they buy stocks. It's hard to make a profit at this rate.
We have been emphasizing that buying stocks is buying companies. You should know enough about the stocks you buy. Behind them are not ups and downs of bands, lines and data, but a living company.