For investment, let's first borrow a small story from "Aesop's Fables":
On a stormy day, a poor man went to a rich man's house to ask for food. "Go away!" said the servant, "Don't disturb us." The poor man said, "Just let me in, and I'll dry my clothes on your stove." The servant thought it wouldn't cost much, so he let him in. This poor man then asked the cook for a small pot so that he could "cook some stone soup to drink."
"Stone soup?" said the cook, "I'd like to see how you can make soup with stones." So she agreed. The poor man picked up a stone from the road, washed it, and put it in the pot to cook. "But you have to add some salt," said the cook, and she gave him some salt, and later gave him peas, mint, and cilantro. In the end, she put all the bits of minced meat she could find into the soup. Of course, you may be able to guess that this poor man later took out the stone and threw it back on the road, and enjoyed a pot of meat soup.
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If this poor man had said to the servant, "Please be kind! Give me a pot of meat soup," what would have happened? The result is very clear, and this is the power of innovative thinking! Therefore, Aesop summarized at the end of the story: "Persist, with the right method, and you will succeed."
After reading this story, it has brought new insights to my stock investment. The key to success is to have the right method. Those side doors and evil ways have a market and have attracted many investors because many people want to take shortcuts and get rich overnight. However, I believe that such a road will only be a dead end. For example, even if you can practice the "Evil-Avoiding Sword Manual" to be invincible in the martial arts world, "if you want to practice this skill, you must first castrate yourself," and in the end, none of the practitioners have a good outcome. The road must be taken step by step, and the foundation must be solid and stable. Nowadays, the stock market is full of teachings on this kind of behavior, but how many people can really win? If you want to achieve financial freedom in the stock market, the first step is very important. It is very important to enter the right door and establish a verified investment philosophy, such as the value investment philosophy advocated by Buffett, and even that super group has made profits with this method. This has been verified and can be learned, but this road has always been a minority road in China and has been greatly criticized.
Having the right method and philosophy is not enough; you also need perseverance, persist, form your own philosophy, be calm and composed, not follow the crowd, learn to think in reverse, apply knowledge flexibly, and form living wisdom. There are too many things around us that have been affecting us, making it easy for us to make wrong judgments and decisions against our own wishes. A person living in such an environment will be greatly influenced without a firm belief. In the stock market, if you choose to go the value investment route, you must focus on being alone.
I very much appreciate a saying: to put the ladder on the right wall. And in the stock market, it is to put the ladder of stock investment on the wall of the correct investment philosophy.
First, find the right wall. This wall is very important, it is the foundation, and it must be solid enough. With more than ten years of stock market experience, continuous learning and thinking, I have finally found the right path for my stock investment. Choose value investment, buy good stocks, and keep buying at the right price, be patient, not follow the crowd, like to think alone, and make independent judgments. I am very clear that my ability to select stocks is not good, and the accuracy of calculating the intrinsic value of stocks is poor. However, life experience can continuously reduce investment mistakes, and when choosing stocks, look for those solid blue-chip stocks with good management, good profit expectations, and good market appeal, with a well-known brand. The intrinsic value is mainly vague, and it is continuously bought in the decline of the stock price, averaging the cost. Although this method is not the best method, in practice, I adhere to it, and the returns are also good.
Second, tailor a ladder for this right wall. Finding a ladder that suits oneself requires careful search, and one must not give up halfway, and must persist to the end. I remember that Buffett believes the conditions for the snowball to grow bigger and bigger are "very wet snow" and "a very long slope." This slope is the ladder, which must be solid enough to bear its own weight, and it must also be long enough to reach the front and achieve the goal.Finally, place this ladder, tailored for oneself, against this wall. With a clear goal and the right method, the road ahead is still tough, and continued effort is needed. Success requires a certain amount of time and soil; good values and methods will be strengthened through trials. During the investment process, always stay alert and not slacken, grasp the unchanging essence in the ever-changing, discern the pros and cons, correct errors, and avoid confusion and chaos.
With a dedicated search and continuous experience, you will surely find the right wall and a ladder tailored for yourself. If both are available, then patiently wait, for achieving financial freedom will no longer be a dream.
Entering the stock market, one must see oneself as a fisherman and hunter, possessing the qualities of an excellent hunter, and choose methods suitable for the habits of different prey when hunting. Just as you want to catch fish, you must learn to think like a fish, and it will only bite the hook when offered bait like earthworms. The round world and interconnected events tell us that the principle is so simple.
Many investors buy stocks very casually. As long as there are recommendations from stock commentators or favorable rumors, there will be people to buy. For these friends, buying stocks is even more casual than buying vegetables, and even when buying vegetables, they still pick and choose. The result of this casualness can be imagined, most are trapped after buying.
A purchase that immediately rises is always the highest operational realm that investors pursue. Theoretically speaking, any big bull stock will have a critical point before rising, just like boiling water, before boiling, there will always be some signs, such as steaming first. Although grasping the critical point is very difficult, since the critical point is an objective existence, we can find some clues.
Establish the correct concept of short-term stock trading
First, short-term stock trading is a buy-sell operation that does not participate in adjustments.
This adjustment, whether it is a weak adjustment or a strong adjustment, whether it is a price adjustment, a volume adjustment, or an adjustment to time or capital flow. Short-term operations do not participate in uncertain stock price movements because uncertainty represents risk, and short-term operations do not do uncertain things.
Second, short-term stock trading is based on technical systems for operation.All technical systems below the daily line, whether they are chart systems or indicator systems, can be classified as short-term technical systems. Any stock price analysis or buying and selling operations carried out according to short-term technical systems are classified as short-term operations.
Thirdly, short-term operations pursue refinement, standardization, specialization, and scientification in operation.
Short-term stock trading pursues macroscopic analysis from the perspective of judgment, starting from the big picture to the small, grasping the safety of buying and selling and the operation of individual stock prices from an overall perspective, and then carrying out buying and selling operations.
The key to short-term success:
1. Strict discipline
To do well in short-term trading, the method is secondary, and it is more important to operate according to discipline. Many people turn short-term into long-term, and long-term into contribution, because they did not sell when they should have, and did not strictly follow the discipline.
2. Three-character formula for short-term: fast, accurate, and ruthless
(1) The speed of watching the market should be fast. Look at the top ten stocks in terms of price increase, and it should not exceed three minutes, from determining the target stock to determining the buying and selling plan should not exceed five minutes.
(2) Buying stocks should be accurate. You should be very familiar with the patterns and analysis of most stocks, and quickly form a clear judgment in your mind. You cannot determine a stock with a single system analysis method, and multiple systems must be used to assist in making judgments.When placing orders, one must be decisive. When buying or selling, do not hesitate or be indecisive. Placing an order and then canceling it repeatedly will only cause you to miss the best trading opportunities. When placing an order, buy at a price higher than the seller's asking price, or sell at a price lower than the buyer's bid price, striving to resolve operational issues in one go.
3. Be sensitive to news
Our country's stock market is good at speculating on concepts. Major concepts affect the overall market, such as stamp duty, reserve requirement ratio, and new share issuance. Minor concepts affect sectors and individual stocks, such as mergers and acquisitions, private placements, and internet technology. True short-term experts do not blindly focus on technical analysis but perfectly combine technical and news aspects. They use news to select stocks and technical analysis to screen stocks and determine buying and selling points, so that they can be adept in short-term operations.
4. Guarantee of profit maximization: Identifying leaders with insight
There is an old saying, "Shoot the horse first when shooting a person, capture the king first when capturing thieves," which tells us to focus on key points and major issues. Stock trading is also like this. The leader stock is a weathervane for a sector and even the entire market, and the increase and profit are often the largest. However, capturing the leader is not an easy task. In the following chapters, we will focus on how to capture the leader, and will not elaborate here.
5. Good market sense
A netizen said well, under normal circumstances, it is the brain that decides our actions, but short-term trading is different. Short-term trading is determined by the first feeling of buying and selling. Whether the first feeling is reliable depends on whether we have a good market sense. So, how can we cultivate a good market sense? The author believes that we should adhere to the "three mores": watch more, think more, and summarize more.
Six principles of short-term stock selling
Medium and long-term can slowly decide the buying and selling points, but short-term must be decisive and fast. Many people say that the selling point of short-term is more important than the buying point. Those who know how to buy are apprentices, and those who know how to sell are masters. Generally speaking, there are the following six principles for short-term stock selling.
1. If the stock is suspended during the day, but opened at the end of the day, and if it cannot be suspended the next day, sell it the next day.2. Continuous upward pull, a high-position doji star appears, if it cannot be pulled up again the next day, sell.
3. A high position releases a huge volume, but the stock price does not rise, sell.
4. When the market rises, it does not rise, and when the market falls, it falls faster than the market, sell.
5. When the profit reaches 10%, the alarm is triggered; when the profit reaches 20%, as soon as there is any sign of trouble, sell immediately.
6. For the just-started plate, buying at any price is correct; for the plate that has been heavily speculated, selling at any price is correct.
Accurate ultra-short line profit buying and selling points
At present, short-term speculation or the ultra-short line we are operating is often to buy today and ask to be limited to the upper board in the afternoon. After this period of training, most stock investors can do it in the morning, and the stock will be limited to the upper board in the afternoon, and it can be limited to the upper board today if it was bought yesterday. The key is how to sell correctly, which is the big problem.
Many stock investors do not know how to accurately find the buying point and selling point, let me talk about it:
The first point, I think scientific calculation is a very important issue for short-term buying, you need to have a scientific buying plan in advance, and scientifically calculate how much the buying price is. There is a saying in society now: the hand is the gun, the gun is the hand, buy where the finger points. This is nonsense, it is a blind talk without thinking, we all think about it before we fry, rather than "the hand is the gun, the gun is the hand", how can this work! At point a in the figure, 2.67 yuan is the bottom strictly calculated according to the scientific calculation, so we can boldly absorb in the area of 2.62 yuan and 2.67 yuan, the amount that can be bought is large, and the price is also low.
The second point, I think to determine the stock price buying point, it is necessary to strictly follow the 2+3 technology on the 15-minute K-line chart. Point b in the figure is a buying point when the stock price enters the 2&3 interval, and it is possible to add a certain amount at this time. This buying point is not calculated according to the formula, but the stock price has started to rebound from the bottom interval calculated by the formula. If the stock price can rebound, it indicates that this calculation formula is correct, and it should be bought if it is correct.When the stock price enters the 2+3 zone, it is imperative to buy, because once it reaches the 2+3 zone, the entire strategy of the market manipulator is exposed. The stock price has become more visibly afloat, hence the manipulator will make the stock price rise faster and hit higher levels. At this time, not only will the manipulator chase the high, but we will chase it too!
With so many students across the country, if each person buys 10,000 shares, 1,000 investors would have 10 million shares, which is quite significant. Therefore, the manipulator will pull the price up more quickly to grab low-priced shares; when the price rises to a certain point, it will start to rest and begin to wash the market, wanting to wash out all of you who bought at points a, b, and c. The manipulator pretends to stop and not do it anymore.
Many retail investors with poor technical skills and unaware of the truth will think that the manipulator really stops, and since they have made a profit of 10% to 20%, they will leave. In this way, they will throw away very precious shares. After throwing away, the stock price will go through a process of volume shrinkage, shrinking to almost no volume, and the area around point d in the chart is the volumeless area. The manipulator's patience in washing the market is quite good, which is to wash out the floating shares inside.
At this time, what does he compete with the retail investors? First, retail investors do not know the inside story, but I, the manipulator, know, so you can't compete with me; second, you are half doing and half not doing, but I, the manipulator, must do it, unswervingly; third, the funds in the hands of retail investors are limited, seeing that this stock does not rise, other stocks are rising, he will chase other stocks, but the manipulator is motionless, he is as stable as Mount Tai, as long as he does his own stock well, it is a profit of ten thousand times. Therefore, Zhuangzi has advantages to deal with you, and must wash the retail investors' shares clean. The so-called washing the market is to wash all the "rice grains", "rice grains" and other soups in the plate, and then go up all at once.
Where should we intervene? We should enter when it is the most volumeless during the washing process, when it is the cleanest, we can enter, this time is a weak link for it. Although the manipulator is very powerful and has a strong strength, it also has a weak link, for example, it can wash the "bowl" very clean, and can drive out all the retail investors inside, which seems to be very capable. But after you know its technical characteristics, you go to make a little food, it can only watch you helplessly, without any way. So, the throat of the manipulator is here, we can draw a line here, from the most volumeless to it, passing through this line and the previous high point, it is the best time to buy, that is, points d and e are two very good buying points, one is the volumeless area, the second is the breakthrough of the high point connection. There are five buying points a, b, c, d, and e, which will not be wrong, all of which are regular, not only to strictly follow the 2+3 technology on the 15-minute K-line chart, but also to follow this principle in the 30-minute, 60-minute, daily K-line, weekly K-line, and monthly K-line.
Well, I think I have explained the issue of buying, that's how to buy.
There are also several points for selling. The first point is that after the stock price rises from point e, it appears for the first time at point f, a small pressure. This pressure should be alert, and the trend often starts to deteriorate from here, because after the stock price rises from point e, this pressure is the only one.
In addition, there is its wavelength - the stock price jump wave, the wave of the stock price from point e, jumped so long, and the wave near point f is very weak, indicating that its jumping ability is not enough. Of course, after the stock price has soared, it has already risen by three limit-up boards, and the driving force to continue moving forward is poor. You must be very careful, once the pressure appears on the 15-minute K-line chart, it is likely to have a setback.
Next, the stock price has entered the 2&3 zone, it is even more necessary to reduce the position (point g), because after the stock price breaks through the 60-unit average line, it is inherently weak, and it is correct to reduce a bit first; then it will enter the 2-3 zone under the 120-line small platform (point f), this is a diving platform, we all know this. Even if the stock price does not dive here, it will also be tossed around here, and it will be tossed until the pressure is transferred to the support, which is a toss, and the time of tossing is the same as the previous rise time, it is very likely to stay here for ten days and a half a month, what are you doing staying under the 120-line at risk? It's better to withdraw first, and besides, we are introducing new stocks and new dark horses every day, just change to another stock?
In this way, we have analyzed three selling points, which are point f - small pressure, point g - entering the 2&3 zone, and point h - 2-3 zone under the 120-line small platform. Of course, we have not subdivided these three selling points, if subdivided, there are still some small movements inside, such as in the 2&3 zone, there is a last glow, and the head grows hair (and this hair has not grown out), etc., which is very detailed, generally rough is enough, because this is a 15-minute K-line chart, which is relatively fine, you say it rough, it doesn't matter, on a very precise and sensitive K-line, the line is a bit rough, which is conducive to buying and selling.Alright, now that we understand the concept of buying at five points and selling at three, we should control our buying and selling accordingly in actual operations, otherwise your ultra-short-term trading will yield no results.
Summary: Precise ultra-short-term profit buying and selling points are based on the proficient use of various single technologies in Guangtong. As long as you learn various single technologies well and understand the applicable positions of each single technology, you can use the 2+3 moving average system technology on the 15-minute K-line chart.
It should be noted that this is an ultra-short-term operation, which is based on the premise of the safety of the daily K-line. If the daily K-line is just in a downtrend at this time, then such operation will be risky.
As a trader, you must develop such a habit: you must act only when you have a clear and clear understanding of the direction and rhythm of the market, just like feeling the breath and heartbeat of the trading variety, and when you have a feeling of "absolute certainty"! Never regret for those missed "opportunities", insist on only making high-win trading, and never easily bow to the market to compromise... As long as you persist in doing this for a long time, and stay out of the market for the rest of the time, watching from the sidelines, your trading performance will be greatly improved! Of course, doing this all the time is boring, and you will lose a lot of trading "fun". But in the long run, the change in the account value will prove that this is worthwhile. The certainty law is not only useful for beginners, but also greatly helps to reduce the number of transactions of those "trading mania" type of veterans, and to suppress their frequent trading impulse.
There are many detailed issues that determine the success or failure of trading. You may have done everything right, but even if there is only one aspect that is not done well, it will lead to failure, which is why some people sigh the importance of luck. It should be known: there is always a mistake waiting for you ahead! We cannot avoid making mistakes, we can only try to make as few mistakes as possible, and try to limit the losses to a bearable range when mistakes occur. Adhering to entering the market only when the market conditions meet your own entry conditions is a crucial part of becoming a trading winner, which truly tests a person's self-discipline.
Think about it, if you are determined not to act unless there is an absolute certainty, how much willpower does this require? It can also be seen from this that financial trading is actually a boring job. But in order to succeed, you must be willing to pay. Insist on making the money that belongs to you, making the money that you can understand, and learn to give up the opportunities that you can't see clearly and have no absolute certainty, perhaps you can live longer in this market that doesn't spit out bones. Earning wealth depends on personal ability, and resisting temptation and giving up the "opportunities" that seem right but are not depends on personal cultivation. In my view, trading is an art about "timing". No matter how optimistic or fond you are of a variety, if the timing is not mature and the fire is not there, you must resolutely resist the temptation to "act"... Hehe, it's easy to say, but in fact, I can't do it completely.
After staring at the target variety for too long, you will unconsciously lower your standards, accommodate the market, abandon principles, and muddle through a "fight first, win later" poor trade. People can't control their itchy hands because they can't be idle and are afraid of loneliness. At any time, anyone's trading quality must be inversely proportional to the number of transactions. The increase in the number of transactions will inevitably lead to a decline in trading quality. In my view, there are only certain and uncertain trades, not the difference between investment and speculation. Certainty is relative, it exists both in short-term trading and in medium to long-term trading.
To put it bluntly, its essence is the "one hit must hit" technique in short-term trading and the "nine out of ten wins" skill in medium to long-term trading. These certain profit opportunities exist in large numbers in the market operation process, and experienced traders will not deny this. But what exactly is the case for having the certainty of profit, even the real market winners can't say a reason. It's not out of the need to keep the technical secrets, but as the Buddhists say: everything is unspeakable, unspeakable; because the limitations of language make it impossible to express the true meaning, what is said is all secondary, it is the image of the truth rather than the truth itself! Everything can only be understood by oneself. I believe that the truly great trading skills cannot be taught.
The longer you crawl and roll in this market, the more deeply you realize that financial trading is the most difficult, most delicate, and most dangerous industry in the world. If you catch a "good time", making a lot of money is easy; but in the long run, why do most people lose money? Why do veterans and even masters die (of course, newcomers die more ugly)? In fact, the answer is very simple, but few people can do it: people can't be idle, and they make a lot of meaningless poor trades! It is this "diligence", these poor trades, not only lose all the profits, but also lose the old capital; those who owe debts and finance overdrafts will even fall into an abyss that will never recover.Always engage only in trades that you are familiar with, excel at, and are most confident in. At other times, restrain your impulses, endure the loneliness, and filter out those meaningless and inferior trades.
For anyone, high-quality trades are only a minority; for anyone, as the number of your trades increases, meaningless or even self-destructive inferior trades will quickly occupy a considerable proportion. Any single inferior trade among them can plunge you into trouble, regardless of whether you are an experienced trader or not. The more trades you make, the more likely you are to lose vigilance, especially when you are profitable. This is human nature.
This market sometimes appears to be hazy, seemingly falling but rising, seemingly weak but strong, tender, lovely, and sexy, and seems to be manipulable. This is the reason why I, including the vast majority of people, lose money so easily. In this market, there is no such thing as "superb wisdom" or "incredible luck" that can break free from the constraints of trading rules. The market is cunning; it is not only the most terrifying opponent but also the most ruthless judge. Sometimes it seems clumsy, so you think it is a cricket in a bamboo basket for you to tease; but when you lose vigilance, it will suddenly bite your finger and not let go; at this time, you realize that it is actually a highly venomous cobra, and not at all a small, lovely, and weak cricket. In this market, "limited contact" can make you a great fortune; while "greedy players" will eventually lose everything! This is the conclusion.
Trading is the art of competition. Its method is valuable in being rigorous and strict. Those who enter the field should be cautious and fearful, with a demeanor as if walking on frost or ice, and may be able to compete.
In terms of skills, one should understand that the way and the technique are in harmony, observing the market and practicing together; integrating the concept into the heart, and the skills into the body; using them to the point of mastery, and being familiar with the rules in the chest; the heart should not be tired of being refined, and the body should not forget to be proficient.
A good trader, when right, holds on; when wrong, corrects immediately. Show great skill as if it were clumsy, show the way as if it were dim, and contain the ordinary in the magical; there is no wisdom to boast of, no bravery to show off; winning without arrogance, losing without despair.
In terms of character, those who are silent and have few desires, and are focused and consistent, are the best; those who talk incessantly and like to teach others are the worst. In terms of the way, one should draw on the strengths of various schools, start with a thick accumulation, and finally, with a thin release, one can enter the rules, but also go beyond the rules, integrate knowledge and action, unify the subjective and objective, be flexible and unobstructed, and be good at adapting to changes in time. In terms of the technique, the essence lies in knowing the form and using the momentum. The form is the essence of the spirit, and the momentum is the accumulation of energy. Those who are good at using the form and the momentum can achieve twice the effect; however, the form cannot be fully used, and the momentum cannot be fully utilized. It is better to have a surplus, and one can observe the trees in the wind, which often sway to transform the great force of destruction, and ultimately, there is no damage.
Before trading, one should be knowledgeable and determined, ask questions and think deeply to gain more, but without burden or bondage; it is appropriate to be broad, and to practice well by returning to simplicity. After trading, one should appear calm and composed, with a deep and courageous appearance, showing a state of collecting vision and listening back, and eliminating worries and concentrating; those who are good at correcting their body, clarifying their mind, concentrating their spirit, and gathering their strength can reach the mysterious. The mysterious, when urgent, respond urgently; when slow, follow slowly; there is no self or market, do not let the heart of gain and loss disturb the calm and clear state of mind like an ancient pond and a quiet moon. Do not be greedy for huge profits, and do not abandon small profits. Those who are good at accumulating can go far.
Entering the market should not be too much, too much is greedy, which may be an ominous omen; it should not be too little, too little is timid and fearful, to use the military as a metaphor, if there is a lack of courage and bravery, there will be no chance of victory. The way can be said, but it is not the eternal way; the law can be followed, but it is not the ultimate law; those who want to obtain it can learn from a teacher, can be self-enlightened, and can imitate nature.
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