Why do foreign exchange masters only talk about theory and disdain technical analysis

old troublemaker in mountain city
山城老刁民

dachshund

Masters may indeed prefer to talk about ideas, but those who only like to talk about ideas may not be masters.

I also don't like to talk about technical things, I like to study concepts and psychology, not because I am a master, but because my technology is too crude, it is just a variant of the Turtle Law, so I am embarrassed to say.

Concept is more important than technology, concept is way, strategy is technique, technology is tool.

In order of decreasing importance, there is a derived relationship.

For example, because of the trend-following concept, the strategy adopted is always aimed at amplifying the profit-loss ratio, and corresponding techniques will be adopted to try to place bets where losses are controllable but profits are uncontrollable.

I think a computer can be used as an analogy. The concept is like the operating system, the technology is like the application software, and the mentality is like the driver. If there is no operating system as the foundation and mentality as the driver, no matter how good the software is, it will be useless, and no matter how good the technology is, it will not be able to play a role. For those who seek knowledge, if they just give a trend system but don't understand the concept, they may blame the system for its low winning rate and stupidity, so they can't use it even if they can make money.

Or he understands the concept in the literal sense, but he doesn't agree or accept it in his heart, so he is still unwilling to use it.

Teaching a man to fish is worse than giving him a fish. It is better to talk about principles than methods. Once you understand the principle, believe it, and accept it, you will build the method yourself. The concept is internal strength, with internal strength, external strength is even more powerful, if there is no internal strength, external strength is just a show.

Working hard on traditional technical analysis, there is limited room for improvement. It seems that nothing more than those things are established to respond to price changes. Models, or rules. And what about the understanding of the concept? Its depth is unlimited. The more you study, the more you will have new experience. From one point to another, it is very interesting to integrate. There is philosophy and art in trading.

Take Mr. Dugu Qiubai in Jin Yong's novels as an example. Using a sharp sword at the age of 20 in the early years may be the feeling of showing your sharpness and cutting iron like mud. Young, fierce and aggressive. At the age of 30, I started to be a human being, using a soft sword, turning, swinging my wrist, and being skillful, which must have been very dazzling, but in the end I accidentally hurt someone, and my cleverness was misunderstood by my cleverness. At the age of 40, using the black iron sword is relatively simple and rough, but it is vigorous, and the tricks are simplified, and it is still unstoppable. In the future, I will use wooden swords, not sticking to weapons, but reaching the realm of transformation.

Some powerful traders also started with the mechanical trading system in the early days, and spent a lot of time and energy developing a magical indicator to create a magical system that can make money no matter what the market is. Later, I found out that it was useless, so I returned to simplicity, using simple methods, just controlling my hands and not messing around, that was enough. Later, add inspiration. Inspiration may sometimes lead to more losses than pure machinery, but in general it can surpass pure machinery, and the return far exceeds that of mechanical trading systems. His operations seem to be irregular, sometimes with the trend, sometimes against the trend, sometimes to the right, sometimes to the left, sometimes with a light position, and sometimes with a heavy position. Sometimes it takes profit, and sometimes it doesn't move. Sometimes a callback will run away, and sometimes the callback will increase the position instead. It seems that there are no rules. This is because he has reached the fifth level.

The process of improving the realm, of course, is that the technology is getting more and more proficient, but also the concept is getting more and more thorough. Human and Tao blend together. Therefore, if people like to talk about ideas, it may be because they like to talk about it. As for whether they are pretending or not, it is impossible to say. If they didn't pretend, and you think they did, is it useful for them to refute, and is it necessary for them to refute? If someone pretends, but you don’t notice it, but you feel that you have benefited a lot from it, then you are the one who benefits, and that’s enough. Whether he pretends or not has nothing to do with your progress. If you love pretending, just pretend.

After all, when we look at other people's answers, the motivation is to learn and communicate. Whether we can learn something is the key point and the core.

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Last updated: 09/14/2023 03:20

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