Therefore, when dealing with the regularities in the stock market, one should use their brains, think calmly, and ask more questions with a critical attitude. For example——

Firstly, we need to ask if this rule is too simplistic?

Truth is simple, and laws are also simple. However, when you come into contact with a pattern, you should seriously consider whether it is too simple, whether it is something that many people entering the stock market can imagine, see, or have already mastered? If that's really the case, then we should wake up our spirits and be particularly careful when dealing with it.

Objectively speaking, the intelligence of most investors entering the stock market is not inferior to others. However, once infected by the fanatical, irrational, and anxious atmosphere in the stock market, their intelligence will be greatly reduced.

For example, many people understand the principle of chasing the rise and killing the fall, buying high and selling low, but under the influence of herd mentality, it often becomes chasing the fall and killing the rise, buying high and selling low. There are countless such ridiculous questions.

In fact, all experiences and patterns are just a historical summary of the previous stock market trends. If they are not sublimated based on their own practical experience, they only serve as a reference and cannot be used as a basis for guiding future buying and selling. Moreover, in the Chinese stock market, once the regularity has been formed, the day when the stock market runs in the opposite direction is not far away.

For example, in 1999, people who frequently speculated made money, so someone said, "Stocks are meant to be speculated on. How can we call it stock trading if we don't speculate? Only by repeatedly speculating can we make money. Why should we hold stocks

And in the almost year long bull market of 2000, how many people who frequently speculated made money? It was those who held shares for several months after entering the market and building warehouses in early 2000 that made money.

It is obvious that the successful experience or pattern of 1999 has already failed in 2000. Can we apply the successful experience of 2000 to 2001? I'm afraid it won't work either. The market has changed, and many things in the stock market have already changed. If we still apply things that have become the past or overly simple rules, can they still work? Hard to say.

Of course, saying this is not to deny the rules that many people in the stock market have summarized with real money, but to remind readers that everything requires using their brains to think carefully. When dealing with successful experiences and operational rules in the stock market, it is also necessary to use one's brain well.  

Secondly, it is important to frequently ask oneself, how long has a certain pattern been present?

Practical experience has shown that all patterns in the Chinese stock market have issues with timeliness and periodicity. Investors must understand that all profit laws, even the most classic ones, will never repeat themselves in the short term. Historians always like to say that history is astonishingly similar, but in reality, history never simply repeats itself in the stock market. Once a profit rule is proven to be effective, the main institutions and main players will use the common understanding of the stock market to deceive the majority of investors. There are many ways to deceive, such as deliberately creating so-called rules to lure small and medium-sized retail investors into falling into their carefully crafted traps. Therefore, investors must understand that the patterns in the stock market may not necessarily be truly useful.

So, what should be the correct attitude and approach for small and medium-sized retail investors towards patterns?

First of all, remember that the method of making profits will not be repeated in the short term. Do not attempt to use others' experience to guide your own speculation, and do not apply things that have been proven effective in recent times. Because these things have already or will soon become things for most people. From the experience of stock market practice, what many people already know becomes temporarily useless in the stock market.

Secondly, it is important to learn the reverse operation in a timely manner.

The main institutions and main players always operate in the opposite direction once a certain method is proven to be a viable money making tool. When investors learn to perform timely reverse operations, their level of stock trading is qualitatively improved. In actual stock market operations, once individual investors discover the reverse operation between the main force and the main force and follow up, the main force and the main force institutions will conduct opposite operations in the opposite direction in order to achieve the goal of buying or distributing. In most cases, the operational approach of the main force is always completely different from that of the majority of investors.

The main institutions and main players always take advantage of people's cognitive characteristics of believing in rules, intentionally creating rules to attract many retail investors. However, when retail investors discover this rule, the main institutions and main players resolutely carry out anti rule operations in order to absorb chips or sell products. Now let's go back to discussing this issue, why do retail investors always lose money? From the above example, it is not difficult to see that it is closely related to the cognitive misconceptions of individual investors. They often think that a rule will work at any time and in any environment. Actually, this is a huge misunderstanding.

In fact, any so-called pattern in the stock market is short-lived. Once time and environment change, the pattern will malfunction or temporarily malfunction. Moreover, in the stock market, stock prices are constantly changing, and the main players' speculative tactics are endless. From this perspective, there is nothing eternal and unchanging in the stock market? Therefore, investors need to remember that there is never a simple pattern in the stock market, let alone a pattern of making money repeatedly and effectively in the short term. Once a certain pattern is agreed upon by a large number of investors, the main institutions and main players will completely abandon it or speculate in completely opposite directions.

Once again, I would like to remind readers that the same pattern of profit is unlikely to repeat in the short term. Do not attempt to apply validated knowledge without engaging in research, and rely on others' existing resources to gain benefits. In fact, it often leads to fatal consequences. Usually, the so-called successful experiences and patterns in the stock market only come into play again when people have almost forgotten them.

Nowadays, the management's supervision of securities firms is becoming increasingly strict, and the main institutions and their speculative methods are becoming more and more covert. Therefore, for what was previously called regularity, it is even more important to awaken one's mind and not believe blindly or blindly. Otherwise, they will lift a stone and hit their own feet.

At present, due to well-known reasons, the Chinese stock market is mainly based on speculation, with investment being secondary. Operating in such a stock market, small and medium-sized retail investors are actually engaged in an intellectual zero sum game (actually a negative sum game) with the goal of earning money from the main institutions and main players. In order for small and medium-sized retail investors to win in this zero sum game and earn their rightful share of profits, they must use their brains, observe and think more, not be bound by past successful experiences, not follow the so-called rules of the past, and constantly cultivate their judgment and analysis abilities to ensure that they make a difference in the stock market.