A grassroots stock god's heartfelt words: How to trade from 50,000 to 1 million?

  • 2024-04-03
  • 33

The stock market hardly makes you rich, but it can make you wealthier! When you are short of money, you are too eager to get rich quickly. It is extremely difficult to profit with this mentality because even if you double your 50,000 yuan, you only make 50,000 yuan, which is far from enough. In fact, doubling your money in two years is already very impressive. Therefore, you should first accumulate your principal.

I don't have a method to turn 50,000 yuan into 1 million yuan, but I have experienced turning 300,000 yuan into tens of millions, so I should have some say on this issue.

I have been trading stocks for 17 years, from a loss of 90% of my initial 300,000 yuan to now making a living from stock trading and achieving long-term stable profits. I always remember when I first entered the market, I thought stock trading was very simple, so I learned a few strategies and a few K-lines, and I couldn't wait to prove my ability in the stock market. However, I ended up paying a heavy price for my arrogance. Later, when my father found out, he scolded me. From childhood to adulthood, that was the first time my father taught me a lesson, and I made up my mind not to let my father down.

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That night, I knelt on the ground, holding my own trading slips and blaming myself over and over again. My father couldn't bear it, so he told me that although there are 360 professions, each profession can produce a top talent, but there is only one top talent in each profession. Those who can become top talents are all those who have studied their own industry to the utmost. Without taking small steps, you cannot reach a thousand miles; without accumulating small streams, you cannot form a river. Everything changes, but the essence remains the same. For example, no matter how skilled the craftsman is, without iron, a sword cannot be made.

People use "sesame blossoms blooming higher and higher" to describe a better and better life. The closing price of a stock also rises step by step like sesame blossoms when it enters the lifting stage, especially the stocks that keep closing at the limit price and rising step by step, which is even more exciting.

The characteristics of the pattern of rising step by step and seeing the limit price include the following aspects.

① The comprehensive score of the moving average is ≥ 50 points, the closing price stands firm on the 60-day moving average, and the closing price of 3 to 5 consecutive trading days firmly stands above the 5-day moving average, and it gets higher day by day.

② Moving average characteristics: The 5-day moving average, 10-day moving average, 20-day moving average, and 60-day moving average are in a bullish arrangement, and the angles of the 5-day and 10-day moving averages are greater than 30 degrees. The two moving averages are smooth and smooth, without a bumpy feeling.

③ Trading volume characteristics: After the 5-day average volume line crosses the 89-day average volume line, the volume column has always been maintained at a high level, and it has not returned below the 89-day average volume line again. The price and volume rise together, and the volume column breaks through the 5-day average volume line again.Buy-in conditions: When the stock price stabilizes above the 5-day moving average again, and the closing price is higher each day for three consecutive trading days, and the volume bar is greater than the 5-day average volume line, then it is an appropriate time to enter the market.

Timely stop loss: Exit the market with a stop loss when the stock price falls below the 20-day moving average.

Classic Case One:

The closing price of Baling Technology began to stabilize above the 5-day moving average, and in the following five trading days, the closing price of its stock price began to rise step by step. Its volume bar was greater than the 5-day average volume line, with both volume and price rising in perfect harmony, and the moving average was smooth and orderly. Subsequently, it closed the first limit-up board, and then it was "like a sesame blossoming, higher and higher" and could not be stopped. In a short time, it went through a doubling trend.

Classic Case Two:

The closing price of Xiongtao Shares began to stabilize above the 5-day moving average, and the volume bar was greater than the 5-day average volume line. In the following seven trading days, the stock price began to rise step by step, and the volume and price were perfectly matched. Subsequently, it closed the first quasi-limit-up board (board explosion), and then the stock price could not be stopped along the 5-day moving average, starting a "not breaking five" stock price carnival, and closed several limit-up boards in a row. In less than a month, the stock price was pulled from 10 yuan to 21 yuan, quickly going through a doubling trend.

Classic Case Three:Yinbaoshan's new closing price began to stabilize above the 5-day moving average, and in the following 5 trading days, the stock price started to rise step by step, with perfect coordination of volume and price, and orderly moving averages. A few days later, the limit-up board was completely pocketed.

Classic Case Four:

The stock price encountered strong support from the 10-day moving average, and in the following 7 trading days, the closing price was higher every day, proving that there was capital entering every day. There is a saying in the stock market: small Yang promotes, and there must be a big Yang. As expected, a limit-up board followed immediately, and then it was unstoppable, with multiple limit-up boards in a row.

The step-by-step rise in the closing price represents that the bulls have capital entering this stock every day to grab shares, advancing layer by layer, advancing step by step, very stable and low-key, until the opportunity is ripe, and then it is astonishing, finally making people pleasantly surprised.

Five years ago, I met a short-term bull who has been insisting on reviewing the market for more than 4 hours every day for ten years, and summarized a "three Yin gives birth to Yang" short-term stock selection method. His method is amazing, simple and practical, and it is simply "wonderful".

In fact, stock traders should have encountered such a situation, that is, looking at the trend, technical indicators, fundamentals, and news, there is no problem, either dare not enter, watching the stock price rise; once you feel that you have entered, it starts to retest, making people at a loss; in fact, in this process, the main force has given us many opportunities to enter at a low position, mainly because we dare not grasp it, because there is no confidence to support us to enter, learning this method is a support of confidence, that is, when there are three big Yin lines, if the following trend appears in the next few situations, it is a very good opportunity to enter, this old stockholder calls it "three Yin gives birth to Yang stock selection method"! Read it carefully, and learn it is your own.

1. What are the characteristics of this pattern? Generally, we can summarize it from three aspects.

Firstly, this pattern appears when the stock price is in an upward stage, or when the stock price is running in a horizontal box; one thing to remember is that this method is not suitable when the stock price is in a downtrend.

Secondly, there is a premise before the appearance of this pattern, that is, there must be a big Yang line with an increase of more than 7% in the previous 3-5 trading days to support it, and if it is a limit-up board, it is the best, which also explains the attention of the main force and the market. Without the market's popularity and the main force's attention, it is difficult for the stock to rise by more than 7%.In the final form of this pattern, the volume of the three bearish candles can be either high or low, but if the volume is high, it should be significantly large or extremely large; there are no special requirements for the low volume, but it should be reduced by more than half compared to the previous period. This is mainly because a high volume may indicate that the main force is shaking the market and trading against each other, while a low volume decline indicates that the main force is accumulating shares and waiting for an opportunity to lift the price. We can judge this by combining the specific shape of the chart.

Secondly, after encountering this pattern of "three bears and a bull," the entry opportunities can be summarized from three aspects.

Firstly, find the last of the three bearish candles; as long as it appears, we can consider entering at the end of the third bearish candle or consider entering at the beginning of the next day; this entry at the end of the day and the beginning of the day should be combined with the current market environment. If the market environment is hot, we can enter at the end of the day; if the market is sluggish, we can consider entering at the beginning of the next day. If the next day opens low or the market is sluggish, then we should not consider entering.

Secondly, if this pattern of three bears appears in the rising channel of the stock price, and the third bearish candle just happens to be at the golden section or the moving average support, such as the 5-day, 10-day, or 30-day moving average support, or the previous high support and the upward trend line support, we can consider entering in combination with the market environment.

The last aspect is when the three bearish candles show a gap down and close bearish, which has an enhancing effect on the probability of a bullish candle appearing later, and the probability of an increase in the price will increase. At this time, we must remember to seize the opportunity to enter at any time.

After reading the characteristics of "three bears and a bull" and the key points of entry, I think everyone basically understands. I have also shared graphic case studies, which you can collect and study by yourself. In fact, if we extend this, we will find that the seemingly simple skills contain the behavior and direction of the main force. Things will reverse when they reach the extreme, and things will not go beyond three times; so these key points are indispensable. When investing in stocks, be patient, be less impatient, study more, complain less, and summarize more, and wealth will naturally increase over time.If you do not plan to leave the stock market in the future and are determined to make stock trading your primary career, then the following content is worth your in-depth reading. These are experiences I bought at a cost of 500,000, and understanding them can save you from taking a detour for five years!

1. Volume and price indicators are the first to be considered; trading volume is the soul of the stock market. Pay attention when the stock price breaks through with increased volume at a low consolidation level, and exit decisively when it shows increased volume but no rise at a high level.

2. Do not try to bottom-fish just because a stock has fallen too much, nor should you go short just because the stock price has risen too high. There is no bottom for junk stocks, and there is no top for strong stocks! 80% of people get it reversed!

3. Persist in reviewing the market every week to see if the logic of your holdings has changed. Technically, check whether the weekly K-line trend is consistent with your judgment, and whether the direction has changed, and make adjustments in a timely manner according to the actual review!

4. Do not transfer money to securities accounts every day, but often transfer securities to money accounts. Feel the temperature and joy of money more, wealth is meant to be enjoyed. Otherwise, seeing too many numbers will make you numb. The former will often become a gambler, while the latter is the key to continuous profit!

5. Do not touch stocks that have had a sharp rise in the past four years. If the rise in the past year has not exceeded 35%, it is often a mess after that, the price enters a downtrend, and every rebound is a last gasp. It is difficult to recover in a few years.

6. Only trade stocks in an upward trend, as this has the highest probability of success. When the 3-day line turns up, it is a short-term rise; when the 30-day line turns up, it is a medium-term rise; when the 84-day line turns up, it is the main wave of the rise; when the 120-day moving average turns up, it is a long-term rise!

7. Do not look at stocks with a poor fundamental and bad news like rain. Watching for one more second is a waste of time. Stock trading cannot only focus on technical analysis, thus ignoring the risks of the company itself. Once encountering major bad news such as delisting, ST, etc., a lifetime of hard work may be in vain.8. It's unknown who invented the term "averaging down," but many retail investors have suffered losses from it! Many people keep buying more as their losses increase, leading to more losses, which is the most taboo in stock trading, putting oneself in a desperate situation. Remember, never average down when you are at a loss, but instead, add to your position when you are making a profit.

Ten years ago, I met a senior who achieved financial freedom in the A-share market 10 years ago with his unique skill, the "bottom code"!

I have observed all the stock trading masters, and they all have one characteristic, which is obsession. This senior is an obsessionist, very persistent in doing things. He has a habit of swimming, and he insists on it even in the cold winter. His approach to stock trading is the same, sticking to principles, seizing opportunities when the market comes, and immediately clearing his position when the market goes! He is decisive and cool;

The senior's stock trading strategy is very simple, which is to first find hot topics, then find the strongest stock from them, and buy on dips to the 5 or 10-day moving average. This method has been repeatedly tried and often catches the main uptrend. Under his influence, I gradually understand that the A-share market is not difficult, sometimes we think too complicated about it. We just need to find the most correct and practical method, learn it thoroughly, and do it repeatedly. Even retail investors can open the door to victory!Let's talk about how trading experts are honed.

A survivor in the trading field has summarized several trading rules that perfectly match the aforementioned recruitment requirements. They are listed here, hoping that investors can increase profits and stay away from pain.

Whether it's a newcomer or an old hand, the psychological elements of successful trading are often overlooked. Trading is undoubtedly one of the most stressful jobs in the world, similar to fire swallowing or bomb defusing.Trading performance can sometimes be likened to a roller coaster, climbing high at times and plummeting at others, always interspersed with joy and sorrow. A moment of inattention, and the market may collapse the investor's psychology and ravage the investor's soul. As long as you enter the market, such experiences are inevitable, but investors can learn how to deal with these situations and even learn to profit from them.

1. Focus on long-term goals. Avoid adjusting trading methods based on short-term performance. In the short term, any trading method may shine for a while, but the long-term cumulative results may be terrible. On the other hand, the best trading methods are also inevitably subject to losses from time to time. Therefore, judging the good and bad of trading methods based on short-term performance may eliminate the best trading methods, ultimately leading to losses.

2. Don't be self-centered. Being self-centered is the fatal flaw of top traders. This kind of example is not uncommon, and don't become a victim because of it. Self-centered traders cannot face losses. They can hardly stand a few consecutive losses. This leads them to often judge the good and bad of trading methods based on very short-term performance. If the market does not immediately follow their trading trend, they will rush to exit, which is a big taboo for investment.

3. Rely only on yourself. When trading, never think about relying on others to achieve yourself. The person the investor wants to rely on may not be a successful trader at all. Of course, there are exceptions, but the chances are few. Only by believing in yourself can you do better. It is extremely important to never blame others for your failures. No matter how bad the situation, you must take full responsibility for your own decisions. Only by taking responsibility can you correct mistakes and avoid repeating them.

4. Don't be emotional whether you make a profit or a loss. Trading is like playing golf. Each golfer has their own strengths and weaknesses, and the results are good or bad. When the results are good, they feel like Tiger Woods, thinking they have found the knack for playing, and will no longer hit the bunker or water hazard. Unfortunately! Next time he finds himself in the bunker, shouting that he will never play again. In fact, the key to making a profit in these markets is the trading psychology. Only those investors who have a precise understanding of these rules, as well as the psychology of the market and investors, especially their own psychology, can have more opportunities to make a profit while still maintaining rationality.

5. Trade within your capabilities. Trading should not affect normal life. If investors are always emotionally tense whether they make a profit or a loss, they should not enter the market, because a moment of emotion can easily lead to disastrous strategies and erroneous judgments. One of the most serious mistakes of investors is to increase their positions after making a profit. This is the worst thing, because after joy, what comes next is often a loss. Increasing positions before a loss will make the loss twice as fast as the profit. The trading amount should be constant, after all, those who walk steadily and steadily will be the ultimate winners.

The above is some sincere words summarized over 17 years, hoping to inspire friends who are predestined to see the article and let everyone take fewer detours. Don't think that stock trading is a difficult thing, I can clearly tell everyone that I have never felt difficult, nor have I felt tired, on the contrary, I enjoy the happiness that stock trading brings to me, just like those people who play games all night, do you think they will be tired?

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