For retail investors, there is no such thing as "bottom fishing" in a bull market.
If you can get the middle part without any trouble in the middle, continuously increase your position and hold on to the end, then you are a master.
The initial rise of a bull market is for retail investors to judge, not to "buy at the bottom". Many people do not know how to judge, but only "buy at the bottom" randomly. When the bull market really comes, their principal has been "buyed" out. Even if they participate in the bull market, they are just recovering their capital.
Retail investors should avoid the late bull market. The last few coins are not for your profit, but to lure you to sell more. If someone helps you to sell more, what are you waiting for?
So, why do you worry about the bull market? If it comes, the time is measured in years. You can just ignore the first stage, make a judgment through trial and error, and then take the middle stage. How can you say "bottom-fishing"?
To be honest, the main reason why you keep buying at the wrong bottom is that you are too greedy and always want to get the first penny, but end up getting nothing. Many big Vs also see your desire to "buy at the bottom" and keep fooling you.
For stock trading, designing a closed-loop and stable trading system is the only way for retail investors to succeed! I have been trading stocks for fifteen years and I know how difficult it is. I hope to help everyone to the best of my ability. In order to thank all my fans for their support and encouragement to Brother Yi, I will release some solid and heavy-duty information today. The content is full of details. I suggest you save it and forward it to your friends who trade stocks around you. Read it repeatedly and I believe your stock trading knowledge will be comprehensively improved!
The following is the framework for building a trading system. I will try my best to provide some inspiration. The general outline has been described for everyone. The details still need to be selected and optimized by friends:
1. Trend definition method
Trend definition is the core of identifying market direction. Commonly used methods include:
1. Moving average: By calculating the average price over a certain period of time, when the short-term moving average crosses the long-term moving average, it is considered an upward trend, otherwise it is a downward trend.
2. Trend lines and channels: Draw support lines and resistance lines to define the price movement range. Breaking through trend lines often indicates a trend change.
3. MACD indicator: Use the difference between the fast and slow exponential moving averages and their signal line to determine market momentum and trend direction.
4. Relative Strength Index (RSI): Although it is mainly used to measure overbought and oversold, it can also assist in determining trends when combined with price trends.
2. Methods for defining buying and selling points
1. Naked K pattern analysis: such as head and shoulders top and bottom, double top and bottom, triangle consolidation, etc. The completion of these patterns often indicates trend reversal or continuation.
2. Crossover of technical indicators: such as moving average, MACD, KDJ golden cross and dead cross, etc., as buy and sell signals.
3. Dow Theory: Use the high and low point ladder to find potential support and resistance levels as buying and selling positions.
3. Trading volume analysis: An increase in trading volume usually accompanies trend confirmation, while a decrease in trading volume may indicate a weakening trend.
3. Coin Selection Method
1. Fundamental analysis
2. Technical screening: Use technical indicators and graphical analysis to select breakouts in an upward trend or pattern.
3. Quantitative strategy: Use historical data to build models and use algorithms to filter out those that meet specific conditions.
4. Theme and event driven: Pay attention to policy orientation, industry trends, emergencies, etc., and choose to benefit.
4. Stop loss point method
1. Fixed ratio method: Based on personal risk tolerance, set a fixed percentage (such as 5% or 10%) as the loss tolerance.
2. Technical support and resistance level: Set the stop loss point below the key support line or above the resistance line, and stop loss immediately once it breaks through. Yi Ge likes to use price support and resistance level, which is simple and practical.
3. Moving stop loss: As the stock price rises, move the stop loss point up to a certain retracement ratio or fixed amount to lock in profits. You can use moving average tracking, chandelier stop loss, support point follow-up, etc.
5. Position Allocation Method
1. Pyramid-style position increase: keep a light position in the initial stage, and gradually increase the position after confirming the trend, but the amount of increase each time decreases to control the risk.
2. Equal capital management: Divide the total capital into several equal parts, use the same amount for each transaction, and maintain risk balance. Yige prefers this equal proportion capital management.
3. Kelly formula: Calculate the optimal position size based on the winning rate and odds, suitable for transactions with clear probability advantages. This method is suitable for friends who have an operating system to test.
6. Message avoidance methods
1. Avoid noise: Ignore rumors from unofficial channels and focus on official announcements, financial reports and authoritative research reports.
2. Set up information filters: Use the financial calendar to focus on important economic data releases and ignore daily market noise.
3. Cooling-off period: After major news is released, wait for the market to digest the information and avoid the impulse to trade immediately.
Methods for avoiding external interference.
4. Independent decision-making: Establish your own trading plan without being directly influenced by other people’s opinions.
5. Review regularly: Review transactions in a quiet environment to reduce interference from others and the environment in your decision-making.
6. Psychological training: Improve concentration through meditation, persistent walking, etc., and reduce the impact of the external environment.
6. Methods for eliminating self-emotions
1. Make a trading plan: clarify the basis for buying and selling, target price and stop loss point in advance, execute according to the plan, and avoid emotional trading.
2. Emotional diary: record your emotional state during trading, reflect on it and learn how to control your emotions.
3. Simulated trading practice: Exercise your mentality through simulated trading and enhance your ability to cope with market fluctuations.
7. Trading Discipline and Rules
1. Strictly abide by the rules: Regardless of profit or loss, always follow the established trading strategies and risk management principles.
2. Regular evaluation: Review transaction records regularly, evaluate the effectiveness of strategies, and adjust strategies when necessary.
3. Be patient and wait: learn to wait for the best opportunity with an empty position, and do not trade frequently due to impulse.
4. Continuous learning: The market is constantly changing. Continue to learn new knowledge and new strategies to maintain flexibility in your trading thinking.
Through comprehensive consideration and careful planning of all the above aspects, it is possible to build a trading system that adapts to market changes and suits personal style, thereby improving the success rate of transactions and the efficiency of fund management.
Trading is a marathon race, which requires friends to prepare for every aspect, train diligently, make good plans, measure their own level, and then go on the field to test themselves. They will still encounter various problems along the way. That is why it is said that stock trading is difficult. The initial difficulty lies in the limitations of cognition, the process is difficult because there is no teacher to learn from, and the ultimate difficulty lies in the inability to integrate knowledge and action!
