Daily price fluctuations are almost certain to mislead investors. Therefore, except during "line-like narrow-range" adjustment periods, daily market noise holds no investment reference value. The purpose of recording daily stock price fluctuations is to ultimately identify predictable and recognizable patterns.
It is worth noting that Dow's Ninth Theorem proposes a way of thinking entirely different from that of the general investing public. To the average investor, daily price fluctuations are the focus of attention. Moreover, stock commentaries in media such as journals, newspapers, television, radio, hotlines, and the internet also concentrate on daily price movements. Granville, the most famous stock commentator in American history (once highly celebrated but later disgraced), once admitted that as a stock commentator, it is impossible to have market insights every day. However, because investors demand it, commentators must provide daily stock analyses. This process is much like feeding fish.
Great investors in American history have been particularly careful to avoid interference from "daily market noise." For example, Buffett has always kept his investment command center in the small rural town of Omaha, Templeton maintained his in the remote paradise island of the Bahamas far from the U.S. mainland, and Lynch went for years without installing a stock ticker. There are other famous investors whose names may not be familiar to Chinese readers, so they are not listed here one by one. These investors operated from locations such as lakesides far from cities, remote mountains, or yachts away from land. What these renowned investors can teach the general public is not their specific investment methods, but their mindset and behavioral approaches.
Since the probability of success in securities and futures investing directly depends on an investor's ability to resist the influence of "daily market noise," investors must not only recognize the importance of resisting such interference but also find effective measures tailored to their own circumstances to counter it.
