Investing in stocks is like pregnancy; it takes three months to see effects, and ten months to see results! It takes three years to get into the industry, five years to understand it, and ten years to become a king! Alas, too many people give up before two months are up, so please keep doing simple things repeatedly, and persist in doing repeated things. Every day you wait, you will be rewarded many times over at some point in the future. Remember, God loves simple children, and God will not treat you unfairly if you stick to long-term value investment!
However, if after ten years of investment, you are still losing money, or you have not even figured out the so-called laws of the stock market, your investment strategy, or your trading system, then you really should ask yourself, in these ten years, are you learning how to trade stocks, or are you just following others' opinions, or even playing with stock trading?
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Many people seem to have been trading in the stock market for a long time, but they are basically short-term speculators, like to listen to rumors, or even follow others' opinions to trade stocks, rather than practicing themselves. So don't say ten years, even if you are given 20 years, 30 years, or 50 years, you will still be destined to lose money!
Remember, learning to trade stocks is like learning to swim. No matter how many great truths are told, it is not possible without getting into the water. Swimming is learned by choking in the water, not by reasoning. Therefore, investment must also understand the importance of personal practice. Only by trying and making mistakes can you grow into a master bit by bit!
In the stock market, time is very precious!
The first complete bear-bull cycle is the time for you to make mistakes, but you must grow from your mistakes, understand the laws of the stock market, know your own mistakes, and correct them;
The second complete bull-bear cycle is for you to refine your trading system and strategy. In this cycle, you must practice personally and improve a trading model suitable for yourself!
Then the third, fourth, and fifth bear-bull cycles are for you to continue compounding!
So, be sure to establish your own trading. Those who only grow older but not wiser in the stock market will never be able to "cash out" in the stock market! Come on!Whether it is life or the stock market, psychology and philosophy are the two major disciplines to cultivate, because only by understanding psychology can one understand others and see oneself clearly; only by understanding philosophy can one look at the world and improve oneself. Only when one truly achieves a state of mind as calm as water can one hear the crisp sound of dewdrops falling on the lake surface and see the ripples that are stirred. Time will wash away all the dust, even the rolling clouds woven by tens of thousands of years at an altitude of three kilometers, just as the rippling lake surface will eventually return to calm, and the rolling clouds will eventually dissipate.
Emotional fluctuations are often caused by external influences, and even the feelings of excitement and happiness should be moderate, because behind the excitement is loss, and the opposite of beauty is desolation. Only by achieving the greatest extent of not being happy with things and not being sad with oneself can one achieve a harmonious state of mind. Otherwise, in the trading market, fluctuating emotions will be extremely dangerous and even fatal at inopportune moments. The significance of learning from others lies in the fact that even without personal experience, one can have a vivid understanding, because the way of thinking is jumping, not hindered by time and space. Too often, the cost of personal experience is heavy and huge, so those who are good at learning from others can not only gain the same psychological experience but also avoid paying meaningless prices.
Taking the infinite as the finite, taking the unchanging to cope with the ever-changing, gaining by giving up, and advancing by retreating, this is the Taoist thought and one of the essences of the eighty-one chapters of Laozi's Tao Te Ching, which can also be used as a trading principle. Just as making a finite number of trades to achieve relatively infinite and knowable trading results, using unchanging trading principles to cope with the ever-changing price fluctuations, and exchanging a few small losses for a big win, so repeatedly, retreating one step and advancing two steps, persisting and persevering, then great achievements will be made.
Stock trading does not need to be too diligent, always only buy stocks that the main force is building positions in, simple but very profitable.
Based on many years of experience, several common but very practical methods for judging whether the main force's capital is building positions have been summarized. As always, we will share and communicate in a combination of text and pictures. I believe that friends will be able to apply these methods to their own stock buying and selling process after careful study and analysis in the future, and it will also be of great help in grasping the buying and selling points.Here are four common methods of testing the market before a major force lifts the price:
The first method is the test with a long lower shadow line.
To judge the market attention of a stock, the main force will deliberately smash the stock down during the trading day, creating a technical support point for the stock price. After that, the sell orders are withdrawn to observe the changes in the buy orders of large funds and retail investors at the relevant positions.
This method can not only judge the popularity of the stock in the market but also achieve the purpose of washing the market at a low level, causing some investors to panic and sell low-priced chips for stop loss, thereby continuing to absorb shares.
In the process of downward testing, as long as the key support point is recovered, it means the test is over.
The second method is the test with a long upper shadow line.
A long upper shadow line is formed when the stock price is impacted by large orders during the trading day, and the stock price is quickly raised by large funds. After the stock price rises to a certain extent, the buying funds withdraw and hang out a sell order, forming a pressure to sell, causing the stock price to fall back after rising on the same day, forming a long upper shadow line.
The end of the test is characterized by a period of adjustment, followed by a breakthrough of the highest price during the test with increased volume, which is the upper pressure point of the horizontal consolidation box, and the market will start to lift the price in the future.
The third method is the test with a suppression and digging pit style.The main force's pit-digging trial, mainly has two purposes: one is to test the strength of the buying orders below, and the other is to wash out the unsteady chips, so as to absorb the chips at a low position, so there will be such a fierce smashing action.
From the above figure, we can see that the stock price was smashed below the 60-day moving average in one day, and then fell continuously for five days, and the trading volume was compressed to the minimum, and then the stock price began to rebound, and the trading volume also showed a gradual increase in volume.
In this process, the main force has completed the action of washing the plate to absorbing the chips at a low position, and then stood on the 60-day moving average with a volume limit-up board, and started the main rise mode.
The fourth type, the limit-up board trial method.
The main force will observe the situation of the plate and the amount of funds of the following plate through the limit-up board, and then further analyze the stability of the chips.
Generally, the main manifestation of this trial method is that on the third day or three days after the limit-up board, the stock price will start to fall; if it does not fall, the stock price will also show a horizontal consolidation state.
The above four methods are the four major classic trial methods commonly used by the main force, we must learn to distinguish, so that we can grasp the opportunity to get on the right position and follow the main force to eat the big meat.
In the stock market, you always hear who has made a lot of money, but rarely hear who has lost a lot of money. In my memory, there are many winners of stock trading competitions every year, and there are very few who can create good results in the second and third years. Often after a success, there is no more news of the individual.
Short-term success is like a meteor in the sky, emitting such dazzling and bright light, but it is fleeting; for example, a rainbow always appears under specific weather conditions, startling you and then disappearing, leaving people feeling sad and sighing!
Excellent traders are not only experts in attacking, but also experts in risk control.To be perfectly honest, if you have not yet embarked on the path of stock trading, I would advise against it. The ruthlessness of the market and my own experiences of ups and downs have taught me that whether it's stocks or other forms of trading, it is an industry with extremely high risks. Therefore, I never encourage people to get involved. If the market's "seven losses, two breaks even, one win" data has not deterred you, then at least listen to the following advice I have for you.
The best advice about stock trading is to stop before you start. Every potential participant must have a clear understanding of this. The stock market, as "The Art of War" by Sun Tzu says, is a place of life and death, a way of survival and extinction, which must be carefully observed.
However, once you step into the trading market, my advice is:
First, understand the market and the nature of trading.
Second, understand human nature and yourself.
Third, cultivate yourself and continuously improve your execution ability.
Buddha helps those with a predestined affinity, and I wish to help those with a sincere heart. I believe that everything is just right. On the road of investment, in the process of making a profit, in the wind and rain, if you are still confused or losing money, you can come to Evolution Island for exchange. As the saying goes: Initiative leads to stories, and stories lead to gains!
A successful trader is the unity of skills, mentality, and virtue, and the three cannot be separated. The highest state of trading is to be selfless, without desire, joy, worry, or fear.Successful traders always have two eyes, one looking at the market and the other always looking at themselves. At any time, the biggest enemy is yourself. Correcting yourself is always more important than observing the market.
The challenge traders face is to understand what kind of person they are and then consciously and firmly cultivate those qualities that are conducive to their trading success.