Once I encounter stocks with the "middle" pattern in stock trading, I will decis

  • 2024-03-08
  • 99

The stock market is unpredictable, and no investor can guarantee eternal success in the market. There are many excellent investors in the market, and their investment strategies and methods can be used for reference, but it is essential to understand that even the essence of others' thoughts always belongs to them. The most important thing is to find the most suitable one among the vast array of theories and transform it into your own investment style. This requires a long-term accumulation of practice. Therefore, after entering the actual combat, investors must focus on the accumulation of knowledge and the integration of it, continuously adjusting their investment strategies according to their preferences. Over time, they will surely develop their own investment style.

Veterans fail in bottom-fishing, novices fail in chasing highs, and some people don't even know how they lose! Many stock investors do not recognize the technology, and they lack a mindset, always holding a playful attitude, thinking that this small loss is nothing, not respecting the market, so in the beginning, the outcome is already predetermined. The market is a game, only when you become stronger can you make money. I have been struggling in the stock market for many years, and I have learned from my losses. I have summarized these points, hoping that everyone can learn from them:

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1. How much money you earn is given by the market, which you often cannot decide, but how much money you lose is determined by yourself.

2. The market is objective, with clear love and hate in good times and bad times. When the market encounters adjustments and the bottom is not clear, it is necessary to follow the trend and wait and see.

3. The logic of the stock market's operation is not quite the same as the logic of the world you are in, and the news you see has a lag and is confusing.

4. Buy when there is disagreement, sell when there is agreement. Buying when there is disagreement means that most people in the market are still in a state of doubt about a new topic, and there is disagreement, which is the time to intervene.

5. Do not find any excuses for your losses. Willing to gamble and accept the loss is the rule here. If you can't afford it, don't play.

6. Only do the leader, not the miscellaneous. Whether it is a short-term or medium-to-long-term, if you want to do it, do the leader stocks, and don't waste time on weak stocks.

7. The strong stocks rise sharply, and the washing is also fierce. As long as the callback range does not exceed 25%, and the main position of the low position is still locked, you can continue to hold or re-enter.8. There is a significant difference between professional and amateur players: professional players constantly adjust their strategies according to market changes, while amateur players lack this skill.

9. Stock trading is neither a rigorous science nor an uncertain gambling, but rather a superb art. The essence of market fluctuations is actually the fluctuation of people's hearts.

10. The biggest difference between the practical school and the theoretical school is that the theoretical school is overly obsessed with the perfection of the theoretical system, while the practical school can adapt to changes in market sentiment at any time, with completely different focuses.

11. Slow is fast, and fast is slow. In the stock market, the accumulation of wealth is such that being fast is actually slow, and being slow is fast. Substantial profits are waiting to be made, not traded!

12. Mindset is more important than skills, but no one will have a good mindset after losing a lot. The main way to maintain a good mindset is to control losses and learn to cut losses.

13. The unity of knowledge and action is more important. Many outstanding people often use various social skills to disguise themselves in life, but this is not the case in trading. Trading is the most true reflection of your inner self.

In the stock market, there is ultimately only one way to make money stably.

Stock trading, the fastest way to profit is to ride the main uptrend, which is also the best way for small capital to grow. Of course, the main uptrend can be roughly divided into two forms. The first is the direct start of the continuous board, also known as "hitting the board"; the second is a combination of a limit-up and a large positive line to form the main uptrend. Hitting the board is difficult and generally not recommended, so we can only choose the second method. When the market forces form a main uptrend, we will find that many of them have a common characteristic. During the continuation of the trend, they usually form a "middle" character-shaped K-line, accompanied by a significant increase in trading volume. This is a sign of the main force of the bulls and bears taking turns and exchanging chips. If the next day can set a new high, it means the relay is successful, and then a new wave of the main uptrend will follow.

Firstly, the "middle character" strategy requires the stock to first form one or more limit-up boards. This means that the stock has experienced a significant increase in a short period of time, which may be due to market sentiment, good news, or other factors. The appearance of such a limit-up board usually indicates a large influx of funds into the stock, which may be the beginning of an upward trend.

Secondly, the "middle character" strategy requires the formation of a red middle character K-line. In the process of the stock price rising, the red middle character K-line on the K-line chart is a specific technical pattern. It usually means that the stock price has experienced a temporary pullback or consolidation during the rise, but then continues to rise. The appearance of this red middle character K-line is usually a buy signal, because it indicates that the stock price has a certain support in the upward trend, and investors can buy here, and make a profit when the price continues to rise after the pullback.Finally, the "Zhong" character battle method also requires the "Zhong" character K-line to be relatively voluminous. This means that when the red "Zhong" character K-line appears, the trading volume also increases. Relative volume implies that the market is active, and investors' demand for the stock increases. This may be a signal that the upward trend is recognized by the market, indicating that investors' confidence in the stock has increased and they are willing to invest more money to buy the stock.

Now let's talk about the conditions and details of the "Zhong" character battle method:

1. First, one or more limit-up boards should be formed, not big Yang lines, because the limit-up board represents popularity and capital.

2. A "Zhong" character K-line with upper and lower shadows should be formed, and it must be red, indicating that the bulls won on that day.

3. The trading volume of the red "Zhong" character K-line should be increased compared to the previous period, indicating that there are new funds entering the short line, and the future is bullish.

Entry position: After the red "Zhong" character is formed, enter the next day when the previous upper shadow line position is broken through.

Short-term operations focus on three words "fast, accurate, and ruthless". In practice, when the signal appears, act decisively without considering news, valuation, performance, etc. As long as there are new main funds entering the short line, there will be a series of continuous limit-up boards in the future.Of course, we can also confirm whether the main force will lift the stock price in the near future by carefully observing the trading situation in the plate, because a considerable part of the stocks have some omens before the market rises. What are the omens before the stock price starts?

1. Pulse-like upward trend appears in the plate

The so-called pulse-like market refers to the stock price suddenly breaking away from the overall market trend and rising in a short period of time, and then quickly falling back to the original position. In this rapid market, there is no enlarged trading volume such as reverse trading.

The light trading in the plate has already told us that the main force did not participate in the market operation during this period (but it does not mean that the main force did not pay attention to this stock), so the main force's market feeling is not very good. In other words, the main force does not know how many sell orders will come out in the market if the stock price is hit up, and how many follow-up orders will come out. Therefore, the main force must try to pull up before officially lifting the stock price to see the market's reaction, which is called "trial plate" in the industry, so the pulse-like upward trend appears.

There is also a possibility that the main force wants to eliminate more sell orders. In order to reduce some pressure in the future lifting, the main force hopes that the sell orders that come out as much as possible before the stock price is lifted, so that the selling pressure will be smaller in the process of lifting the stock price in the future. If the stock price rises, and there are more follow-up orders in the market, then the main force can also act as the seller to pour the chips into the market. So the main force wants to draw out the market's sell orders by hitting up, and then choose the appropriate time to lift. This situation indicates that the main force has sufficient funds and is also confident in the height of the stock price rise.

2. Oppressive downward trend appears in the plate, but the tail market is often stable

This trend is quite tortuous. There is a large selling pressure in the plate, and the stock price is falling step by step, but the tail market often rises again.

Everyone knows that the result of such a trend is to attract more meat-cutting plates. But in order to make this trend come true, the main force generally needs to add some strength, otherwise, relying solely on the power of placing orders is definitely not enough. The power mentioned here is nothing more than chips, the chips sold. Therefore, there will be some large sell orders in the plate, and even to deepen the market's influence, some downward reverse plates will also be made.

We can carefully observe the naturalness of its trading, generally speaking, there will be many abnormal acceptance and rejection phenomena.The main force's intention in creating this posture is to increase the effort to establish short-term positions, which is to say, they hope to buy more low-priced chips, which is a method of inducing a false sense of security. Let the market cut a large amount of meat here to the main force, and then the main force will make a wave of the market. If it goes smoothly, the main force will sell the chips bought before to the market in the process of the stock price rising.

The above analysis has two unusual signs before the stock price rises. In fact, there will be other signs, and stock friends can put forward their own opinions along this line of thinking. Market research has never had a fixed rule, as long as it is reasonable, it is good.

Finally, if investors really want to make money in the stock market, then they also need to pay attention to the following issues:

(1) Always hold full shares: Stocks are not money, they may make you money, but they are more likely to make you lose a lot of money. Therefore, it is actually a speculative tool to make money, and it cannot be equated with bank savings. The less investment in bank savings, the less interest, while the timing of buying stocks is very important, and it is not possible to buy stocks every day. Sometimes, a certain stage is the time to buy stocks - generally when the stock market is about to start rising after being low; sometimes, a certain stage is only the time to sell stocks - generally when the stock market is about to fall after being hot. The correct approach is to focus on holding stocks during the rise of stocks and holding cash during the fall of stocks. Always holding full shares is not a good investment method.

(2) Misuse of living funds: Stock trading is mainly based on idle money, and it is not appropriate to use funds that are necessary for life and production to invest in the stock market. The risk of the stock market may be very large, and once it is completely wiped out, it will bring great psychological pressure to investors.

(3) Blind buying and selling of stocks: Thrift and economy are the virtues of the Chinese people, and this spirit of thrift should also be used when trading stocks. It is specifically reflected in that when buying, one should consider it again and again, and choose to buy low when panic selling; when selling, one should also be patient and choose to sell high when soaring. Because the value of winning and losing stocks is far greater than the value of traditional thrift and waste.

Investment should at least protect the principal first, and then pursue the attitude of profit-making, which is a major characteristic of successful investors. Investors must adhere to the investment philosophy of "do not do what you are not familiar with, do not do what you do not understand" and focus on investing in industries that are easy to understand.

Taking the protection of capital as the first principle does not mean not investing, because profit and loss are related, and never taking risks also determines that investors will never make money. Big investors usually pay attention to long-term benefits. They do not regard each of their investments as discrete and individual events. They focus on the investment process, and protecting capital is the foundation of this process. Protecting capital has been internalized into their investment methods and is the basis for everything they do.

Investors should invest in "high-probability events" rather than anything else. If they invest in "high-probability events," investors are almost certain to make a profit, and the risk of loss is negligible, sometimes even non-existent. Although the risk of the stock market is objectively present, it can be avoided.

In the investment market, perhaps investors think they are very smart, can compete with the market, can make any investment, and make a lot of profit, but when investors suffer heavy losses, they will understand that their understanding of the investment market is so little. To be a successful investor, one must always remember this investment rule: never lose money.

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