Chinese stock market: After 15 years of stock trading, 90% of the technical meth

  • 2024-03-09
  • 175

#Seeking You Who Loves to Express Yourself#

The stock market, this profound ocean of the capital market, is far more brutal than any arena, silently testing the wisdom and determination of every participant. In this unpredictable and treacherous waters, rationality is like a compass for navigation, and tranquility is the safe haven for the soul.

The journey of investment is a dialogue with oneself. Have you ever taken the time to read the financial reports of listed companies word by word, delving deeply into their value? Have you ever savored the research reports from securities firms, capturing the pulse of the market from them? Have you ever actively collected the latest news of the company, using information to build your own decision-making framework?

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Similarly, in the leisure time of life, maintaining a peaceful state of mind, whether it is immersing oneself in the melodious tunes of the radio, capturing photographic inspiration while strolling the streets, or spending a quiet fishing time with friends, or even enjoying a moment of quiet daze alone, is nourishment for the soul, allowing you to be more composed in the market's ups and downs.

In the torrent of the stock market, independent thinking is particularly precious. The convenience of the Internet is often accompanied by an influx of information, which can both illuminate the path forward and blur your vision. True investors are those who can stick to themselves in the loneliness of thought, forge armor with faith, and expand territories with wisdom. They understand that the noise of debate is just a superficial phenomenon, and inner determination and deep thinking are the keys to victory.

In the stock market, "the survivor is the king" is not only a contest of survival, but also a test of patience and strategy. Too many people choose to give up in the dark before dawn, not because they cannot see the light, but because they failed to persist until the last moment. Therefore, cultivating a quiet character, enjoying lonely thinking, and facing the market's fluctuations with a calm attitude are essential lessons for every investor.As for the turnover rate, it is like a barometer of the stock market, revealing the level of trading activity and the movements of the main forces. From low to high, each interval contains different market signals. Learning to interpret the turnover rate is like mastering the secret language of the stock market, which can help you more accurately grasp the pulse of the market and formulate more reasonable investment strategies.

In summary, stock market investment is a marathon, not a sprint. On this long and challenging road, maintaining rationality, enjoying tranquility, and persisting in independent thinking will be your most precious wealth. And those seemingly simple turnover rate data, behind which hides the wisdom and rules of the market, are waiting for those who are willing to explore and apply them.

Firstly, let's analyze the turnover rate of stocks in the vast starry sky of the stock market. The turnover rate is like a bright star, guiding us to perceive the pulse and vitality of the market.

Now, let's explore together how to use the turnover rate, this key indicator, to judge the activity level of stocks:1. The Realm of Silence: Turnover Rate Below 1%

When a stock's turnover rate is below 1%, it often indicates that its market activity is extremely low, with poor liquidity, much like a tranquil lake. For such stocks, investors can usually temporarily set aside their attention, as they may lack sufficient trading volume and market attention.

2. Normal Waters: Turnover Rate Between 1% and 3%

When the turnover rate rises to the range of 1% to 3%, this signifies that the stock has entered a relatively normal range of activity. This is the norm in the market, indicating that there is a certain level of trading activity occurring, but it has not reached a particularly eye-catching level.

3. Ripples Begin to Appear: Turnover Rate Between 3% and 7%When the turnover rate further increases to 3% to 7%, the market begins to show signs of increased activity. This means that more investors are participating in the trading of this stock, the market attention is gradually increasing, and stock price fluctuations may become more frequent.

4. Turbulent Waves: Turnover rate between 7% and 10%

If the turnover rate can reach the range of 7% to 10%, it indicates that the stock has become a hot topic in the market with extremely high activity. These stocks are often representatives of strong stocks, attracting a large amount of capital pursuit, and price fluctuations may be more intense, but at the same time, they also contain more investment opportunities.

5. Surging Torrents: Turnover rate between 10% and 15%

When the turnover rate breaks through 10% and climbs to around 15%, the market has shown a very active trend. These stocks often have very strong liquidity, and there is often the shadow of the market maker behind them. While investors enjoy high liquidity, they also need to be alert to the potential risks and fluctuations in the market.6. High Position Warning: Turnover Rate Over 15%

Once the turnover rate exceeds 15%, it enters the category of extremely high turnover rates. Although this indicates that the liquidity of the stock has reached its peak, it may also be a signal that the main capital is selling at a high position. Investors should be highly vigilant, closely monitor market dynamics, and guard against being trapped at high positions.

Second: Turnover Rate Stock Selection Skills

1. Turnover Rate of Main Long-term and Medium-term Operation Stocks

(Note: The original text seems to be cut off and does not provide further details on the second point.)When assessing the activity of individual stock trading, the turnover rate is undoubtedly an indispensable reference indicator. Some stocks, despite having a relatively low turnover rate, can still continue to rise steadily in price. This unique market feature often implies that there is a carefully planned and stable operation by medium to long-term main forces behind the scenes.

For these types of stocks, the reason they can maintain an upward trend against the backdrop of a low turnover rate is because the main force funds have deeply intervened and controlled a large number of shares. The manifestation of this market control ability allows the stock to show strong resistance and independence when facing market fluctuations, thereby ensuring the continuity and stability of the stock price.

Looking further, these stocks with medium to long-term main force operations have relatively lower risks. The existence of the main force not only provides strong support for the stock price but also reduces the sharp price fluctuations caused by retail investor behavior. At the same time, the main force's long-term holding and stable operation also reduce the speculative risks of the stock, allowing investors to hold more at ease and enjoy the benefits brought by the rise in stock prices.

Interpreting the K-line chart of Wanliyang, we found an interesting phenomenon: although its huge actual circulation plate has reached 627 million shares, the daily turnover rate shows a clear stable trend, with the highest being only 3.39%, and the lowest daily turnover rate is even as low as 0.46%.Against the backdrop of such a relatively low turnover rate, the stock price has continued to maintain a steady upward slope trend. This phenomenon strongly proves that the driving force of the stock's rise does not come from the frequent entry and exit of short-term speculative capital, but is supported by the solid support and stable operation of medium and long-term mainline funds.

For such stocks dominated by medium and long-term mainline funds, we can adopt a more active participation attitude. Because medium and long-term funds usually have stronger patience and a longer-term vision, they pay more attention to the fundamentals of the company and long-term development trends, rather than short-term market fluctuations. Therefore, such stocks often have stronger resistance to falls and potential for continuous appreciation, providing investors with a relatively stable return expectation.

2. Speculative capital manipulation of stock turnover rate

When the stock price starts to rise and seeks to be pulled up, the activity level of the turnover rate becomes the key support for its upward momentum. The positivity and thoroughness of the turnover rate directly determine the lightness and speed of the stock price increase. In this process, as trading becomes more frequent, the chips that made profits early are continuously taken over by new market participants, a process that is vividly called "profit cleaning."

As the cleaning deepens, the average holding cost of the market gradually rises, which means that more investors are buying stocks at higher prices, thereby reducing the selling pressure that may be encountered when the stock price continues to rise. Therefore, the positive performance of the turnover rate not only accelerates the rise of the stock price but also lays a solid foundation for its subsequent continuous climb.The candlestick chart of Tianci Materials presents a picture of fervent trading driven by the prosperity of the lithium battery industry. The stock has attracted funds from all directions due to the significant growth of the lithium battery industry. It is worth noting that, due to the lack of obvious main force funds for long-term layout in the early stage, the trend of Tianci Materials does not follow the typical pattern of medium and long-term capital operation.

Instead, its daily turnover rate remains high, averaging around 20%, and even reaching an astonishing rate of over 40% on some trading days. This data clearly reveals that the stock is experiencing a "hot potato" style of speculation dominated by speculative capital. This high-frequency turnover phenomenon is a direct reflection of speculative capital entering and exiting quickly, pursuing short-term profits, and also marks Tianci Materials as a popular stock with a high degree of speculative capital participation.

For such speculative stocks, a continuous and uniform high turnover rate is the key to maintaining the upward momentum of the stock price. This is because a high turnover rate not only reflects the activity of market trading but also means that there is a continuous flow of funds driving the stock price upward. Once the turnover rate shows a significant decline, it often indicates the withdrawal of speculative capital and the cooling of the market, which will directly lead to a weakening or even reversal of the upward momentum of the stock price.

Therefore, for investors, when participating in speculative stocks, it is necessary to remain highly vigilant and closely monitor the changes in the turnover rate. Only by ensuring that the turnover rate can continue to be maintained at a high level can confidence in the upward trend of the stock price be maintained. At the same time, attention should also be paid to controlling risks to avoid blindly chasing highs or holding positions for too long when the turnover rate drops sharply.3. Analysis of High and Low Turnover Rates for Stock Price Forecasting

Among the many strategies to explore whether a stock has reached the bottom area, observing the turnover rate provides an intuitive and relatively simple method. When a stock operates in a continuous downtrend, if its turnover rate drops to an extremely low level, this is often a signal worth closely monitoring. A low turnover rate means that market trading activity is almost at a standstill, as if the stock has been forgotten by the market, especially for those stocks that have experienced main force capital building and subsequent washing before, this phenomenon is more significant.

When such a stock appears with an extremely low turnover rate, it may indicate that the stock price has approached or is in the bottom area. This is because, in the process of a long-term decline in stock prices accompanied by a high turnover rate, a large number of investors may have chosen to leave, and the remaining shareholders may choose to temporarily watch due to serious losses, resulting in a significant decrease in trading activity. At this time, if the turnover rate further decreases to an extremely low level, it may indicate that the market's selling pressure has been relatively fully released, and the space for the stock price to fall further may be relatively limited.

Therefore, for investors, when discovering such stocks with extremely low turnover rates, they should regard them as potential investment opportunities and make comprehensive judgments in combination with other technical indicators and fundamental analysis. Of course, it also needs to be noted that a low turnover rate does not necessarily mean that the stock price will rebound immediately, and investors still need to maintain a cautious attitude, waiting for clearer buy signals to appear.Observing the K-line chart of Jinke Entertainment, we can notice a key technical pattern: when the stock price retraces to the vicinity of the 60-day moving average, the trading volume significantly decreases, and the turnover rate also drops to an extremely low level. This phenomenon indicates that within this area, the buying and selling activities of the stock are unusually inactive, almost reaching a freezing point. The low turnover rate at a low position often indicates the exhaustion of the previous short-selling force, that is, the downward pressure of the chips has been basically consumed.

Although the upward buying force seems to be insufficient, it is precisely this temporary balance of the forces of buying and selling that provides the possibility for the stock price to stop falling and stabilize. Because, in a downward trend, once the short-selling momentum weakens, and the buyers have not yet formed a clear counterattack force, the stock price is easy to form support in this area, thus sending a signal to stop falling.

Regarding the relationship between turnover rate and stock price increase, we need a more in-depth and comprehensive understanding. When the stock price is at a relatively low level and is still in the early stage of lifting, a high turnover rate indeed often accompanies a strong rise in stock prices. This is because a high turnover rate means that the market is active, capital flows frequently, and provides sufficient momentum for the rise of stock prices.

However, when the stock price has risen significantly and is far away from the cost line of the dealer or the main force, the situation changes. At this time, a high turnover rate may no longer be a boost for the rise in stock prices, but has become a signal for the main force to sell. Because, in the high position area, the main force may use the enthusiasm of the market, through the way of high turnover rate, gradually distribute the chips in their hands to the retail investors who chase high, thus realizing the high position cashing. This is what we often say "the sky sees the sky price", that is, under the background of high trading volume and high turnover rate, the stock price often also reaches a phased high point.Therefore, during the process of rising stock prices, we need to closely monitor the changes in turnover rate. At the beginning of the rise, a high turnover rate may be a good thing; but in the later stages of the rise, especially when the stock price has already deviated significantly from the cost line, a high turnover rate should alert us.

We also need to note that the rise in stock prices must be accompanied by a sustained and uniform high turnover rate. Once the turnover rate begins to decrease, it means that the funds for high-altitude relay are decreasing, and the driving force for the rise in stock prices will also weaken accordingly. At this time, we need to be alert to the potential adjustment or reversal risks of the stock price.

Ten sentences that retail investors must remember to make money in stocks:

1. The courage to cut losses is fundamental: To become a qualified securities investor, the core is not the level of intelligence or experience, but whether you can show the courage and determination to cut losses at critical moments. This is the first line of defense on the road to investment.

2. Beware of the trap after making a profit: The stock market is like the tide, rising and falling in an instant. The complacency after making a profit often becomes the breeding ground for losses. Remember, safety is always the premise of profit, setting a stop loss is like driving with a brake, indispensable.

3. Resist temptation and choose opportunities carefully: The stock market is a place where opportunities and risks coexist. The wise move is to learn to give up in order to gain more certain returns. Pursuing maximum profit often comes with the expansion of losses.4. Recognize the nature of the stock market and respond flexibly: The stock market does not directly create value; our gains come from the mistakes of others. Therefore, different expectations should be held for each stock and each phase, responding promptly to market signals to lock in profits.

5. Self-examination and overcoming weaknesses: Fear and greed are the bane of human nature and are weaknesses exploited by the main forces. Retail investors need to face and overcome these emotions, using reason to combat the emotional fluctuations of the market.

6. Emphasize mindset and strategy: In the stock market, a good mindset is a prerequisite for the effective execution of strategies, and strategies are superior to mere technical operations. News may be tempting, but it often contains many pitfalls, so independent judgment should be maintained.

7. Follow the market trend: The overall market trend often exceeds expectations, as it is reborn in despair, moves forward in hesitation, and ends in madness. Policies and news are only short-term disturbances and cannot change the long-term direction of the market.

8. Manage risks and seize opportunities: The stock market is full of risks, but the wise are brave in facing and managing them. The greatest risk is not giving the opportunity to correct mistakes, so every successful transaction is worth cherishing.9. Struggling with human weaknesses: Fear, greed, and hesitation are the stumbling blocks on the road to investment. We need to continuously self-cultivate and fight against them, maintaining calmness and rationality.

10. Mindset determines success or failure: Even a master of the ninth degree may occasionally make mistakes, and the key lies in how to face them. Maintain a peaceful mindset, do not be impulsive, restless, greedy, or fantasizing, and be brave enough to accept failure, because failure is the necessary path to success. Only by daring to lose can we ultimately win the market.

The stock market, as a relatively fair arena, is far more equitable than we might imagine in our daily lives. The following points will reveal why the stock market can be such a unique existence:

1. A haven from worldly affairs: In the complex modern society, the deceit and social interactions in the workplace often make people exhausted. The stock market, on the other hand, is a place where there is no need for pretense and everything is straightforward. Here, you can close the door, stay away from those hypocritical smiles and complex social interactions, and sail freely in the ocean of numbers with only your wisdom and judgment, focusing on every buying and selling decision.2. The area where origin and background fade: For many people in the workplace who find it difficult to break through bottlenecks due to family background and resource limitations, the stock market provides a brand new starting point. Here, no matter what your origin is, no matter what your past is, it doesn't matter. The stock market only looks at your vision, your judgment, and your actions. It doesn't ask about the past, only about the present, providing everyone with an equal opportunity to compete.

3. Simple and direct rules of victory and defeat: Although some people may question the lack of transparency and manipulation in the stock market, we must admit that in any industry, there will inevitably be such problems.

In the vast market of the stock market, the large funds that can truly control the long-term trend of a certain stock are only a minority. For most investors, whether it is 100,000, 1 million, or 10 million, as long as you can correctly grasp the pulse of the market and formulate a reasonable investment strategy, it is possible to get the due return on this battlefield. The victory or defeat of the stock market depends more on your wisdom and effort, rather than the amount of money you have.

The journey of the stock market is full of thorns, and behind every success is the accumulation of countless challenges and persistence. The dream of financial freedom, although the road is long and difficult, it is precisely this relentless pursuit that makes every step forward shine with the light of hope. As an old hand in the stock market, I have been sailing for fifteen years, and I am willing to turn my experience into nectar, nourishing the hearts of every dream chaser - "The cultivation of the stock market begins with the cultivation of the heart.

Only by crossing oneself can one cross others, and only when the heart is calm can one see through the market trends. Cultivate the spirit in the quiet body, and cultivate the heart under the quiet spirit. In the face of fluctuations, patience shows magnanimity; in the face of choices, calmness is the mark of a wise person. May this saying be like a lighthouse, illuminating your investment path.If you find these words beneficial, feel free to pass them on, so that more fellow travelers can feel the strength and warmth. Thank you for your attention and likes, may every friend ride the wind and waves in the vast ocean of the stock market, with stocks ever rising and dreams coming true!

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