Persist in learning and improve cognition. And summarized 6 experiences, full of gold content, I hope that friends who have read it will be inspired.
1. Stay calm when the market falls sharply in the early trading, avoid blindly stopping losses, because it may just be an overreaction to the negative news. Waiting for the market to repair and reverse can avoid wrong operations. When the market rises sharply at the end of the trading, do not blindly chase the rise, recognize the possible trial and inducement of the main force, and the possible low opening and suppression and accumulation strategy the next day, which will help investors make more rational decisions.
- For example, a certain stock opened sharply lower in the early trading due to sudden negative news, but as the market digested the news, the stock price gradually stabilized and rebounded. If you blindly stop losses at this time, it will cause unnecessary losses.
2. Trading volume is indeed a very important technical indicator. The continuous rise in shrinking volume shows that the main force has strong control ability and the chips are relatively concentrated; the decline in shrinking volume indicates that the panic has not yet emerged, the market has not reached the freezing point, and there may be room for further decline.
- For example, if the trading volume of a stock has been maintained at a low level during the rise, it means that the main force is firmly in control of the situation and there may be a large increase in the future.
3. Understanding the top structure of the sector is very helpful for grasping the sector market. Different wave types represent different stages and trends, but it is necessary to pay attention to the complexity and variability of the market. Judging the top by observing the performance of the sector leader is also an effective method.
- For example, after a certain sector has experienced the first wave of following the trend and the second wave of adjustment, it has a huge increase when entering the third wave of the main rising wave, but in the fifth wave, the increase may weaken or even end.
4. Pay attention to the correlation between the top acceleration period of the big cake and the surge of a certain sector, and judge the index trend by the performance of the leader, which can give investors a clearer understanding of the overall market trend.
- When the big cake is in the top acceleration stage, if a certain sector suddenly surges, it may be a signal of market change.
5. The importance of single-minded focus. Newbies should first study a method in depth and expand it after mastering it. Avoid greed and lack of skills.
- For example, novices should first focus on the use of the moving average system, deeply understand its principles and application scenarios, and then learn other technical analysis methods after becoming proficient.
6. The three structures of the trend are clearly explained, allowing investors to choose appropriate tools and strategies according to different stages to improve the effectiveness of operations.
- Using trend indicators in the rising stage may have a higher success rate, while it is more appropriate to use support and pressure levels in the consolidation stage, and some indicators should be used with caution in the downward trend.
In general, these experiences cover many important aspects of trading and are of great reference value for investors to improve their cognition and operation level.
