What is the biggest mistake when looking at the K line
The meaning of K-line is to record the price, but where is the misunderstanding? The recording method of K-line is excellent, but investors are easy to step into the misunderstanding because of its excellent recording method. How to say? Can be understood as the myth of K-line investors. Here, we need to understand a question: do we have the price first or the K line first?
This problem lies in the biggest misunderstanding. Many investors because of the record of K line to stock price, and then myth of the existence of K line, resulting in a misunderstanding. The fundamental reason is: over reliance on the K-line, or the expectation of forecasting the future stock price through the K-line.
The special recording mode of K-line has predictable probability, but it is not 100%. If we rely too much on the K line, it will certainly affect the investment. We still return to: do we have the price first or the K line first?
There must be a price before there will be a K line. If there is no price, there will not be a so-called K line, or a line with no real fluctuation range. Since the stock price comes first, then what influences the stock price? Stock market atmosphere; good news and bad news of listed companies; investor sentiment, etc.
Listed companies have great value. Even if the short-term has shocks, the long-term will still be upward, because it has value, and the price fluctuates around the value. In other words, investor sentiment and stock market atmosphere affect the short-term trend of stocks, while the value of real listed companies can not fundamentally affect it.
What does this have to do with the misunderstanding of K-line? The relationship lies in the short-term, long-term, investor perception, and the way K-line records information and predictability.
Generally, forecasting the trend of the stock market and stock market is to summarize the relevant experience, trend, graph and index of the stock market, which is also the case in the K-line, and investors summarize the combination of the K-line. Whatever the way, it is important to use experience to predict the future trend of the stock market and the stock market. However, the K-line comes after the stock price, and the stock price is the presentation of endoplasmic changes of listed companies. Although the technical nature of the short-term K-line has an impact, the long-term does not have a significant impact.
Misunderstanding is that the predictability of the K-line, only in the short-term, but investors as a long-term forecast. Of course, the information recording method of K-line is mythologized by investors, and the reality is not that K-line appears first, but the internal quality of listed companies is good and bad.
It is not easy to invest in the stock market. Many investors expect to use a certain technology and skill and then understand all the stocks. This is a wrong way. Correct understanding of the K line can better avoid misunderstandings.
From the perspective of investment, the understanding of K-line is really helpful, but it is not a decisive factor, it is only auxiliary. This view may be different from many investors' understanding of the K-line. Different from this view, the most important thing in the stock market is the K-line. After all, when you open the stock software, the first thing to show is the K-line chart.
To sum up, the biggest misunderstanding of K-line is the cognitive misunderstanding of investors, believing that K-line can predict the future trend of stock price. However, this kind of experience summary, trend analysis, has the probability of success in prediction, but it is not absolute. And K line is only an auxiliary investment, not a decisive factor.