I know an old senior who entered the market with 100,000 yuan and now has a market value of 10 million yuan. He said something to me that really enlightened me. He said: "The A-share market is full of mobs. You just need to control your emotions, and this market is like an ATM!"
During the Lehman crisis, the slogan "cash is king" became popular. Everyone was smart and waited for a lower position to enter the market in the future. It was much more difficult to make up one's mind to clear the position than to make up one's mind to enter the market again. At the bottom, the market was most pessimistic, and they would not enter the market at this time. Only after the market rose, the moving averages were arranged in a bullish pattern, and an upward trend appeared, did they have the courage to buy. Investors who originally hoped to "buy low and sell high" often turned into "chasing the rise and selling the fall".
What kind of retail investors do bankers like most?
Know yourself and know your enemy, and you will never be tired of fighting. We must first know what kind of retail investors the bankers like, and do the opposite, which are the retail investors they hate.
Hot money and market makers like to buy stocks at the limit and short-term retail investors, because they harvest those who speculate in the short term. Institutional practitioners harvest retail investors who hold stocks for the long term and chase the rise and fall.
In the short term, there is nothing wrong with chasing the rise, that is the way to play, you can't let short-term traders do low-buying or bottom-fishing, that is not short-term. In the medium and long term, you must focus on valuation, regardless of the market index or industry, but the arbitrage space between intrinsic value and market value.
The market makers like to make retail investors panic at the bottom and greedy at the top through the fluctuations of K-line. Trading volume is the most objective data. The volume shrinks at the bottom and increases at the bottom. These are all facts.
Retail investors are very active at the top and trading volume increases, which means the market makers leave the market and retail investors take over. At the bottom, retail investors are unwilling to participate in bottom fishing and are all waiting and watching. The market makers slowly buy at low prices and all the investors are lying flat, but there are always people who can't bear to cut their losses. The market makers do not support the market but only collect chips, so the stock price will fall and go sideways.
Therefore, the market makers like to be unable to control their emotions. When the market is at the bottom, they are full of panic. When the market is at the top, they are full of excitement. Retail investors are swayed by the K-line and dominated by emotions. The main force draws a few K-lines, smashes the market, and pulls out a few K-lines, and then they obediently cut their losses at the bottom and chase the rise at the top.
Don’t watch the market, don’t gamble, don’t chase rising prices!
Everyone should be clear about their own trading style. There is no right or wrong. Investment is different from speculation. Investment looks at the relationship between price and value. When the price is far lower than the value, it has investment value. It has nothing to do with the industry or the market index!
In this market, both good and bad companies have value. For short-term investors, the position where ghosts and wolves howl is precisely the golden pit for long-term investment. However, when the short-term peak of the acceleration wave reaches the top, it is a disaster for long-term investors who chase the rise.
Blue-chip stocks are the cornerstone of A-shares. Banks, liquor, pharmaceuticals, new energy, resource stocks, etc. are the structure of A-shares. Currently, technology stocks are not taken care of, although there are 3,000 technology stocks in A-shares. The bull market of A-shares has nothing to do with retail investors, because less than 10% of stocks fluctuate upward. Most retail investors have small and medium-sized theme stocks. The stocks with the best gains are all de-retailized.
For medium and long-term investment, buy low and wait for the market to rise. Don’t watch the market, don’t gamble, and don’t chase the rise! You just need to overcome your emotions, and you will always be invincible.
To put it bluntly, there is no good or bad method for stock trading, but there is one thing that everyone can agree on, that is emotion! Investment, speculation, 100,000 yuan of capital, 10 million yuan of capital, stock trading for 1 year, stock trading for 10 years can all be dominated by the market, it must not be the K-line, indicators, fundamentals, but emotions!
Whether it is value investing or short-term speculation, if you cannot manage your emotions well and act like a mob, going with the flow, you are likely to be the retail investor most loved by the market makers.
10 years ago, in Guangdong, my master took me to see the whole process of the market maker's operation, which made me re-understand the nature of stocks and benefited me for life! Share it with all my good friends. The content is a bit long, please collect it!
The process of banker manipulation in traditional theory is nothing more than absorbing funds, raising prices, washing the market, and selling. However, we should understand that the core of banker manipulation is to control the emotions and behaviors of retail investors by using the rise and fall of stock prices and time within a controllable range.
1. Paying respect to the mountain.
If you want to marry someone else's daughter, you must first meet the parents-in-law, have a drink with them and feel them out. As for hot money, there is no need to meet the parents-in-law when you are in love. If you really want to be a market maker, you must first connect with the listed company. It is not as difficult as you think, because the listed company itself also hopes that someone will push up its stock price, otherwise how can the major shareholders cash out? On the one hand, the purpose of the visit is to understand the company's intentions, and on the other hand, it is also to find out the specific situation, understand the shareholding of each party, and whether there are other major players.
2. Draw a picture.
After all parties have been well-managed, the most important thing is to draw the chart. In fact, in the entire trading team, the person who draws the chart is the most important and the most secretive. The focus of drawing the chart is two aspects, one is time, and the other is space. Time and space, the horizontal axis and the vertical axis constitute the basis of all graphics. There is only one core idea of drawing here, that is, to control the psychology of retail investors at different stages. Lao Wu has emphasized in previous articles that the core idea of trading is to control the mentality of retail investors. There are generally 7 stages for bankers to draw charts. Which stage is your stock in?
1. In the accumulation phase, the box fluctuates. The market seems to break through but cannot break through every time. The overall volume begins to increase, and the upper and lower edges of the box are both volume peaks. It falls very quickly, but tends to be slow when it rises.
2. The first stage of rising is generally faster because retail investors have been deceived many times in the fund-raising stage and often dare not chase the rise, so they will quickly move away from the cost area.
3. The first stage of the wash-out is often deep, with a certain amount of shrinkage, which makes retail investors think that the stock price will fall below the previous low at any time and dare not intervene.
4. The second stage of rise is slow and takes a long time. At the beginning, you don’t know whether it is a rebound or a reversal. When it breaks through the high point of the first stage, retail investors realize it too late and often usher in another storm.
5. The second stage of the wash is often faster than the first stage. Only a sharp drop will make people afraid. At the same time, the speed of pulling up is also fast, the purpose is to make the insiders cut their losses, so that the outsiders have no time to consider and intervene.
6. The third stage of the rise is the fastest and largest wave of rise. The purpose of this wave of rise is to attract the attention of the entire market. It will often have multiple daily limit increases to attract retail investors and allow them to intervene at high levels. The characteristic of this stage is that stock price fluctuations begin to increase, and even to the ceiling. On the one hand, the stock price is being pulled up and sold at the same time, and on the other hand, it allows retail investors to have firm confidence in its rise.
7. The last stage is delivery. In fact, the delivery stage has already started during the last wave of rising. It just takes into account the degree of delivery. If the delivery is sufficient during the rising process, the stock price will fall sharply in the final stage. Insufficient delivery will require high-level fluctuations. At this time, we should focus on the turnover rate
3. Make a picture.
The prerequisite for making a chart is to control the market. Of course, the degree of control depends on the financial strength and the level of drawing. For example, Rendong Holdings is a scumbag, a typical example of playing himself to death. No one follows the trend, so what if the stock price is high? The main force only needs to consider how much stock he has bought that day, whether retail investors are buying or selling, and try every means to get retail investors to sell before pushing up the price. Try every means to get retail investors to follow up on this ticket before selling. Several common methods used by bankers to make the market:
1. Indicators.
Indicators are sometimes used to attract retail investors, and sometimes used to trap them. Without considering indicators at all, we found that there are always one or two indicators that are applicable. Therefore, for retail investors, the reference significance of the indicators of stocks controlled by market makers is not very large (except for volume and price), while the opposite is true for stocks with a large number of institutions.
2. Dig a hole.
It is not that easy for the main force. Sometimes there are too many people following up. If you want to use a decline to clean up the market, the most feared thing is that you fail to clean up and more people follow up. So generally speaking, the wash is usually done by a rapid decline, and then a rapid rise to pull away from the low position, only giving people in the market an opportunity to exit, and not giving people outside the market a chance to enter. Or it is to grind for time at a relatively high position. Grind until retail investors are shaken. Therefore, the significance of the golden pit is very important for retail investors.
3. Trading volume.
If you were a banker, would you let retail investors sell at highs and buy at lows? You certainly wouldn't, so how do you achieve this in the normal process of making charts? In fact, it's very simple, using the buy and sell gears and speed. I don't know if you have noticed that most stocks will show a state of large volume at the 15-minute level, and this large volume is based on this situation. If the stock price wants to quickly break away from the high and low points, it must quickly eat up all the buy and sell orders at the high and low points. At this time, the transaction volume at the small level will be significantly greater than usual. Experience it carefully. This is the most stable method to judge the high and low points of the day.
4. Language of the market
It is difficult for retail investors in A-shares. It is not that we are not smart or hardworking, but that it takes time for the entire ecosystem to be perfected. The era of bankers is slowly passing, and the main players and institutions are beginning to rise. However, the medicine remains the same after the soup changes. The wool will always come from the sheep. No matter how the times change, we can only gain a foothold in this market if we continue to study our opponents. Only by knowing ourselves and the enemy can we win every battle.
Speaking of shipping, here is an extended explanation of the shipping methods commonly used by the main force:
1. Pushing up and selling Pushing up and selling often means that after the main force has made a profit, it will push up the stock price again, making retail investors think that the stock price will continue to rise, thus successfully making retail investors take over, and the main force completes the shipment. Small orders are used to push up the stock price, and after the stock price rises, large orders are placed. There are rarely large orders on the top, and large orders often flash below far away from the selling orders. However, the actual transaction is often not the large order that takes over, but the air transaction - the purpose is to create the illusion of a large number of buying orders and active transactions, so as to lure the market to take over the dealer's selling orders.
2. Suppressing shipments Suppressing shipments is a forced shipment method! This pattern indicates that the dealer has a strong desire to ship - it is often related to the rush to cash out or the forced exit due to the broken capital chain. This pattern often opens quickly and then quickly drops, selling all the way, large and small orders are smashed all the way down, showing an undisguised and determined exit.
3. Sawtooth delivery "Sawtooth delivery pattern" is a gentle delivery method. The dealer builds a high-level platform to cultivate the market's psychological expectation of the stock price "breaking through" upward. It is under this psychological expectation that the dealer unconsciously takes over the chips in the hands of the main force. The transaction volume is not large, and there are few large orders. The orders that are traded are mainly small orders (the main force splits them into small shares to the market). There are pauses in the middle, which resembles a "sawtooth", so it is also called a sawtooth delivery method.
First, the public opinion and stock critics are definitely paying attention to listed companies with good performance. In fact, stock speculation is betting on good news. Once the good news is made public, the dealer will take the opportunity to sell. Even if the performance is quite good, retail investors will buy in. Who will make money? Besides, performance can be artificially created.
Second, there is a large number of retail investors following up on the stocks recommended by stock analysts. When the market makers see so much retail investor funds rushing in, they don’t want to pull up the stocks anymore. They have to shake out the stocks and drive away the retail investors before they are willing to pull up the stocks. Stocks that have been consolidating for a long time and do not rise or fall with the market mean that there are no market makers or the stocks have been withdrawn. Such stocks often have a huge surge in the previous stage of history. It is precisely because the stocks have no one to take care of them that they can only consolidate for a long time. It may also be that the institutions that follow the market makers are trapped and cannot get out for a while, so they can only consolidate for a long time in a certain range. If there is an opportunity, they will pull up sharply, and if there is no opportunity, they will let it go. For such difficult market makers’ stocks, investors would rather give up one thousand than enter one, and should avoid them appropriately.
What is the difference between experts and retail investors?
What is the difference between experts and retail investors? From a macro perspective: first-rate experts use state of mind, second-rate experts use trend, third-rate experts use technology, and ordinary retail investors use confusion. People at the highest level talk about the state of mind. They don't look at anything, and they can make money by just feeling. I say that first-rate experts have gone through the stage of confusion, through technology, and after the trend, they have reached a state of mind. People who use trends say that trends are invincible, and you can make money if you understand the trend. People who use technology say that you don't believe in anything, but you can make money by learning the technology in a down-to-earth manner. However, many retail investors do not have their own methods or their own ideas. They listen to this or that, but in the end, not only that one is good. They use everything, but nothing works well, and they only lose money by confusion.
In my 16-year career in the stock market, I have come into contact with many tycoons with assets worth hundreds of millions. After communicating with them, I have summarized three types of people who can make money in the market, and the third type of people is very close to us!
First, there are the main institutions, usually securities firms, funds and some hot money that come together. These people usually have a complete organizational structure. Decisions are not made by one person, and they are a very professional group of people. These people have time advantages, financial advantages, and information advantages, so their profits are usually very high.
The second type is people who own equity. For example, a friend I met when I was playing WOW before, he owns 1% of the equity of a wind power company. His previous investment was only about 2 million yuan, and it just went public recently, so his assets are over 100 million yuan.
The third is the focus of today's talk, retail investors who have their own trading principles, because I also do this, and I also entered the institution with this, I have experience so I can share more specifically, a total of four major trading principles:
1. Position holding principles
This is the most important part of this article. Although it has many words, you must understand it well. Whether you can really maintain your profit depends on this principle! Because buying is not difficult, maintaining profit is the most difficult!
Why do I say this? Because the buying point is chosen before you hold a position, and your logic and rationality are still at a relatively high level. The stop loss point is actually the same, which is the position you set before entering the market after objective and rational analysis. So as long as you can record it and execute it effectively, then buying and stop loss will not be a big problem!
But holding a position or holding a profit is completely different. At this time, you have a position and enter the market, which is in line with the old saying that those who are involved are confused! People who hold positions often do not have clear ideas, because human nature always makes people think in a direction that is beneficial to themselves, rather than really thinking about everything! This is what I have repeatedly emphasized before. Before trading, you must formulate a complete trading plan, list all possible situations one by one, and then write down the corresponding decision-making methods. This is called an effective trading plan!
If someone wants to argue and say that plans cannot keep up with changes, then I can only say that your plan is not complete and detailed enough.
2. Buying principles
For the two stock pools, there are naturally two buying principles:
For stocks in the mid-term consolidation stage of an upward trend, the buying rule is that if the recent high in the consolidation stage is effectively broken through with large volume, you can consider entering the market with a mid-term bottom position, with the bottom position not exceeding 50%. After the breakthrough, if it continues to consolidate or rise slightly, rather than directly retreating and breaking through, you can confirm that you have increased your position.
For stocks that accelerate the main rise, if the second board determines the leading position and the dragon turns back, then decisively chase the rise and enter the market. It is not clear where the buying points of the dragon turning back and the second board determines the leading position are, I will illustrate it below.
For the former, my opening idea is naturally a mid-term idea; while for stocks that are accelerating their main rise, the standard short-term idea is used. Do not use short-term ideas to do mid-term, and do not use mid-term ideas to do short-term, otherwise it is easy to cause problems!
3. Stock selection principles
I will never buy at the bottom. I only choose stocks in an upward trend. No matter it is the midway trading of the upward trend or the main rising stage of the upward trend, I will select it and then choose the opportunity to buy it.
How to judge the upward trend specifically has actually been mentioned many times. The easiest way is to use the bullish arrangement of the moving average. If you don’t look at the moving average, the boll band forming a standard upward channel can also be used. If you don’t use technical indicators, you can also hand-draw a trend line.
After confirming the upward trend, we will select the stocks for the second time and screen out the stocks that are in the mid-term consolidation stage after the breakthrough and the stocks that are in the accelerated main rise. We will divide them into two stock pools and conduct cross-tracking.
4. Selling Principles
It is divided into stop loss and take profit. Stop loss is fixed. This is the only thing that does not require flexibility. My fixed stop loss is 10% of the principal. Once you lose money, stop immediately!
Stop profit is a passive stop profit. Once you buy a stock and get a floating profit, the first target of the stop profit is the cost price. Capital preservation is the first factor. If the profit is already high, then the stop profit will be further raised. For example, if the profit is 15%, then the stop profit will be set to 5%. If the profit reaches 25%, the stop profit will be raised to 15%. The above is just an example. I personally use the high point of the previous trend as the passive stop profit point of the next wave.
That’s all for the practical stuff. Below is a diagram. It is easier to understand with the diagram and text. After understanding, I hope you can combine your own trading system to review and form a sense of the market and instinct. Only in this way can you be considered to have learned it! If you rashly operate a technique when you see it, without adding your own thinking to it, even if you make money, it is just a temporary luck! Remember, lucky players can’t go far!
Stock selection is the first and most critical step in stock trading. It is no exaggeration to say that choosing a good stock is half the battle. Therefore, it is necessary to pay attention to stock selection. Many investors must have heard of various technical theories, but very few can really make money. I have only used the chip distribution strategy in my life: "If the upper peak does not move, the decline will not stop; if the lower peak is locked, the market will not stop." I have never failed in thousands of transactions!
What is chip distribution?
The distribution of stocks held by investors of a certain stock at different prices. On the chip distribution chart, we can clearly see many columns, each column has its corresponding stock price, which is expressed as the percentage of the trading volume at that price to the circulating market, which reflects the investor's position building cost and holdings. On the chip distribution chart, you can see red columns and blue columns. The red columns represent profitable orders, that is, the investor's purchase price is lower than the closing price of the day; the blue columns represent loss orders, which means that the investor's purchase price is greater than the closing price of the day.
Observe the chips to judge the rise and fall of stock prices:
1. After the chips are concentrated at a relatively low level, the stock price breaks down and continues to fall in free fall;
2. After the chips are concentrated at a relatively low level, the stock price breaks upward and the volume turns to rise;
3. After the chips are concentrated at a relatively high level, the stock price breaks down and turns to a free fall;
4. After the chips are concentrated at a relatively high level, the stock price continues to break upward and continue to rise.
Chip distribution strategy:
1. The bear market will not stop until the top is dead
In a falling market, if the upper dense peak is not fully consumed and a new single-peak dense peak is formed at a low level, no new market will arise.
A sufficient condition for a rising market is that there are no large numbers of trapped shares above the stock price. Each upper peak in the falling multiple peaks is a strong resistance level. The disappearance of the upper peak and the formation of a new single peak density at a low level means that the decline has stopped and stabilized.
Most of the chips were concentrated at the top. Then it fell sharply, rebounded several times in the middle, and then fell again until a low single peak was formed, launching a wave of market.
2. Breaking through the high single peak concentration
The stock price has already risen significantly, the original low-level single-peak concentration has been eliminated, and a high-level single-peak concentration has been formed.
If the stock price falls below the high single peak, you should stop loss and exit in time.
3. Continuous decline, with multiple peaks
The stock price starts to fall after a single-peak concentration at a high level. On the way down, it oscillates and consolidates to form two or more dense peaks. When a new dense peak is formed, the original dense peak is smaller, but still exists.
The shock and consolidation during the decline is of a rebound nature, and each dense peak will become a strong resistance level for the stock to rebound.
4. The bull market will not stop until the peak comes down
In an upward market, if the lower dense peak is not fully consumed and a new single-peak dense peak is formed at a high level, the upward market will continue.
In an upward market, each lower peak in the rising multiple peaks is a strong support level. Only when all the lower peaks disappear and a new single peak density is formed at a high level, it means that the market may end.
5. Breakthrough of low single peak concentration
After a long period of stock price consolidation, the chips are distributed at a low level and form a single peak density. The stock price breaks through the single peak density with large volume, which is usually a sign of a round of rising market.
A sufficient condition for a round of rising market is that the distribution of chips forms dense low-level peaks. The denser the single peak, the more complete the chip turnover and the greater the upward force.
6. Continuous rise, multiple peaks
The stock price starts to rise after a single-peak concentration at a low level, and it oscillates and consolidates on the way up to form two or more dense peaks. When a new dense peak is formed, the original dense peak is reduced, but it still exists.
The shock consolidation during the upward movement is of the nature of a market wash, and each dense peak will become a strong support level for the stock's pullback to wash the market.
7. Breakthrough of high single peak concentration
After a round of upward trend, the stock formed a single peak concentration at a high level, and the stock price broke through the high peak concentration again, setting a recent historical high.
When the stock price breaks through the high single peak again, it is the beginning of a new round of upward trend. Appropriate intervention should be made in combination with other signals, and stop loss when the stock price falls back and breaks through the high dense peak.
I have been trading stocks for 16 years, crying for 6 years and laughing for 10 years. What really changed my destiny was the wake-up call from an old senior 10 years ago. I realized the 16 truths of stock trading, and since then I have truly been able to support my family through professional stock trading and laugh at the ups and downs of the stock market!
1. People are greedy, angry, and ignorant. When the market is rising, they always want to make more money. When the market falls, they start to play dead and are unwilling to admit defeat. After finally getting out of the trap, they become a cowherd. In this market, if you don't have principles, you will definitely be influenced by the dealer and your emotions. My principle is that each loss should not exceed 5% of the principal, and if you make a profit, it should be at least 10%. Once the profit of more than 10 points begins to be taken back, at least ensure that the transaction will not lose money. In this way, even if your winning rate is only 50%, 100 times, your profit will reach 800%. Is it difficult? What is difficult is people's greed and fear, and the unity of knowledge and action.
2. Concentrate your investment and learn to short positions. The biggest pain points of retail investors: not knowing how to short positions, covering positions when the market is weak and at a loss, having little capital and many stocks, and holding on to losses. No more than 3 stocks below 1 million should be held. Those stocks with downward large-scale moving average systems, weak stock characteristics, and not in the mainstream track should be removed. It may take a lot of courage for you to admit your mistakes, but admitting your mistakes is the beginning of our success. Those who know how to buy are apprentices, those who know how to sell are masters, and those who know how to short positions are ancestors. When the market is not good, you must be able to control your hands. And when you are really optimistic, you must dare to hold a heavy position. In fact, most of the profits in the investment market come from a few good stocks. I never hold more than 3 stocks, even in a bull market.
3. I always think that the trading volume indicator is very important. If you learn this, you will crush 80% of the traders. If the volume ratio is less than 0.5, it is a significant reduction in volume. If the reduction in volume can set a new high, it means that the main force is highly in control of the market, and the possibility of the main force selling can be ruled out. If it happens to be in an upward channel, the probability of eating meat is very high. If the stock hits the daily limit, the volume ratio is less than 1, which means there is still a large room for growth, and the probability of hitting the daily limit again the next day is very high. If the volume ratio is greater than 1.5, and the stock with a reduction in volume after breaking through a certain important resistance level (such as the 20-day moving average) is a rare buying target.
4. A sharp drop is a touchstone for testing stocks. In a bull market, a sharp drop in the market means an opportunity to buy at the bottom, and it is also a good time to pick stocks. If the market plummets, your stocks will fall slightly or even not fall. It is obvious that there is capital holding together and refusing to fall. Therefore, you can hold such stocks with confidence, and there will be returns. If the market plummets, your stocks will fall sharply, and the next day when the market rises, it will rise sharply. This is probably because the main force is taking advantage of the market decline to clean up the market. The stock has good characteristics. You can buy such stocks when the market plummets, and sell them when the market rises, and make short-term rebound arbitrage.
5. Trend is king, follow the trend. Once the trend is formed, there is no need for much analysis, you must follow it, follow the funds, do not guess, do not predict, do not assume. If you do not know how to judge the trend, you can look at the moving average. The so-called moving average is to divide the market into long and short positions. Long positions are upward and short positions are downward. For short-term trends, you can look at the 5-day moving average. If there is a large-volume breakthrough, you can follow up. For medium and long-term trends, you can look at the 20-day moving average. If there is a large-volume breakthrough, you can enter, and if it breaks, you can exit.
6. Grasp the emotional freezing point. The market has its own emotions every day. Most of the time, there will be some emotional "freezing points" during the trading session, which may be at the opening, at the divergence point after a period of opening, in the afternoon, or at the end of the trading session. In short, there are emotional freezing points almost every day. At this time, people often choose to make a move at the freezing point, because the freezing point can just test the strength of individual stocks, which can often obtain panic chips brought down by emotions, and can also effectively avoid chasing high prices.
7. Understand the subject matter: news, main line, funds, and carrying capacity. News is the catalyst that can most stimulate the market. This is the point that short-term players must pay attention to. The main line is the hottest direction in the market, such as new energy in 2021 and the concept of new crown medicine in 2022; funds mainly depend on the net inflow of the main force, and the carrying capacity refers to the sustainability of the sector and whether there is capital willing to lift the sedan to form a joint force.
8. When investing in short-term strong stocks, you must pay attention to trading volume and turnover rate: when there is a big rise, there must be a large volume, which shows that capital is involved and the future trend is optimistic; in addition, generally the daily increase is more than 5 points, and the turnover rate should not be lower than 5%, but it is best not to exceed 30%. These are the summary of many years of experience. If you don’t believe me, you can observe the recent trend of strong stocks, and you will give me a thumbs up.
9. Double Yang shrinking double Yin is a very reliable rising pattern. What does it mean? Double Yang shrinking double Yin? It means that the volume is doubled on the day of the big rise, and the volume of the Yin line on the next day is doubled. But it is worth noting that the callback did not break the bottom of the big Yang line on the first day. The subsequent small Yin and Yang K lines are excellent opportunities to enter the market, and the explosive power in the future market is extremely high!
10. Investment comes from life. Find opportunities from details. When reading an announcement, you should infer the whole from the details. The logic of capital intervention is to make money, the logic of making money is value, and the logic of value is the implementation of business behavior. Therefore, the direction of thinking is news - logic - capital - technology - time-sharing market, extracting the essence from the cases in life.
11. Long-term thinking. Look at the long term and do the short term, which means that you don’t have to hold a stock for a long time, but you must have this kind of thinking. The so-called long-term thinking means that you should have your own operating mode, don’t follow the crowd, stick to your own ideas, and constantly improve them, so that you can make stable profits and keep improving.
12. After making a big profit, you must learn to short sell. Retail investors often become proud after making a big profit. However, pride will lead to defeat. Commodities have a time cycle. After making a big profit, you will forget the value of time. When a person succeeds once, he will increase his self-confidence. Continuous success will make him full of confidence. He will be 100% sure of his own judgment. If he is optimistic about a stock, he will buy it immediately. If he buys the wrong stock, but a small loss will not reduce his confidence much. Only when he suffers a big loss will his confidence drop significantly. When his confidence drops, his actions will be easily deformed! Don't try to seize the opportunities of each sector. People who chase two rabbits at the same time will never catch them!
13. The more difficult the transaction is, the more you need to keep calm. Not everyone is qualified to walk the difficult road. Only those who can bear the pain of Nirvana are worthy of the beauty of rebirth. The stock market is like this. When the money-making effect comes out, it is easy to make money. When the money-losing effect comes out, it is also easy to lose money. The key point is to have the courage to act and to stop immediately.
14. "One general's success is the result of the sacrifice of thousands of people." Stock trading is actually very bloody. One profit, two draws and seven losses are the only unchanging truth in this market. Many stock market experts I know study Buddhism. For every big wave of market, whether it is rising or falling, we will choose to release animals. I know this is meaningless, but I just want to make my mind clear. If one day everyone succeeds, we must remember to do something meaningful for society! From a Buddhist point of view, this is cause and effect, and from a serious point of view, we should help the world if we are successful!
The above are the summaries of my practical experience and techniques in stock trading for more than ten years. They may not be applicable to everyone. Everyone needs to use the summaries in combination with their own practices. As a trader, the most terrible thing is not that you have technical problems, but that you are not aware enough and fall into these trading traps without knowing it! There is no invincible trading system, only people who use the trading system invincibly! This is the truth. The trading system will eventually return to people!
I am an adventurer who has experienced three rounds of bull and bear markets. I am good at logical stock selection and technical timing. I only trade within my cognitive range, and my direction is confirmed by the market every time. Follow me, and you will catch more fish! Thank you for your likes and attention!
Success is not accidental, and opportunities are reserved for those who are prepared. Follow the official account "Hash Beast". A helmsman who is good at combining medium and short-term band arbitrage is here. No matter what the market conditions are like in the future, I will accompany you all the way!