A word from a veteran stock trader who has been trading for 20 years: Can only "

  • 2024-03-23
  • 198

Stocks can make you feel very extreme; when you win, you feel like a genius, but when you lose, you feel like a fool. When there are no trades, it's boring, but when there are trades, you become even more anxious.

In the stock market, there are often myths, and many "immortals" emerge. Don't envy others for how much money they make; grasping your own situation is the most important thing.

What we have is our own money, and we should cherish it even more.

Don't blindly bottom-fish, and don't blindly try to catch the bottom. You know, the bottom and the top are where you can lose a lot of money.

A person is valuable for self-awareness; those who are self-aware are wise.

Short-term traders who can refrain from trading in a weak market will soon be among the top traders. No matter how high the level of a short-term trader, if they cannot do this, they cannot escape the fate of losses.

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There are many short-term trading masters in the market who excel in skills, experience, and market sense. Most of the profit reversals are due to not doing this well; otherwise, the returns would be over 60%.

In an uptrend, do not underestimate unpopular stocks. Problem stocks may also be a big dark horse. But this kind of horse is not suitable for those who are not bold enough and have poor psychological quality.

Short-term stock trading should set a stop-loss position. Different people have different situations, but generally, it is good to set the stop-loss point within a 10% drop. In short-term stock trading, if the stock breaks through the stop-loss point, you must admit defeat.A 20-year veteran stock trader's words: Can only "fools" make money in the stock market?

Why is it said that "fools" in the stock market are more likely to succeed?

In the stock market, those who believe and persist foolishly have essentially become the best and most successful in the stock market.

If Jack Ma now offers you a deal for 100 million yuan, as long as you read two books every week, get up at 5 o'clock every day, run for an hour, and then work on the job you like from 7 o'clock to 21 o'clock and take it seriously, and persist for three years! If you persist for three years, this 100 million yuan will be yours, can you do it?

Needless to say, most people must be able to do it!

But if no one makes this 100 million yuan agreement with you, and tells you that the same persistence will also make a lot of money one day, can you still persist?

The result is also very obvious, 90% of people can't do it!

Because most people do not believe in things that cannot be promised, but later gradually find out that this story is actually something most people have encountered in reality! Because that contract is called ideals and goals!

Why is it said that "fools" in the stock market are more likely to succeed? Because they are easy to believe in things that others can't believe, and persist in things that others dare not persist in.If Buffet tells you to buy near the major support levels of 325 points, 998 points, 1664 points, and 1849 points, and hold on until the bull market, promising you a profit of 3-5 times, can you do it?

 

I believe most people can do it!

But without this promise, if we tell everyone to start buying low near the 2440 point area and hold on until the bull market, where you can also expect a return of 3-5 times, how many people can do it?

I believe most people cannot do it!

This is also because most people are very prone to judge the future based on the current situation, rather than judging the present based on the future situation.

It is important to understand that a longer time cycle can often overlook many risks and accidents caused in the short term. However, if you shorten this cycle, you will find that these issues can cause great harm to you.

Just like now, it is a bear market, and many people are filled with panic, fear, and worry. We always overestimate the impact of the short term and underestimate the long-term growth and the power of time. This is the reason why retail investors are prone to failure.

Tell yourself: The road to success will never be crowded, because there are not many people who can believe and persist.

To succeed in the stock market, you either have to be a "madman" or a "fool", and never be the "smart person" that everyone thinks you are.Outstanding enterprises with sustained high growth in high-growth industries are the best investment targets. The best investment method is to buy high-growth outstanding enterprises in high-growth industries when the market is desperate, and let time take care of the rest! In the stock market, strategic vision + good mentality + persistence = success!

Major force selling techniques:

1. Limit up and limit down selling:

The manipulator quickly drives the stock price to the upper limit in a short period, and since the cost of the urgent pull is relatively low, then seals a large order on the upper limit. At this time, retail investors will follow the trend and enter. Subsequently, the main force withdraws the previous large buy orders and secretly sells on the upper limit. When the buy orders decrease, it seals a large order again, and the cycle continues. The retail investors who follow the trend are trapped one by one. Therefore, a large volume limit up is highly likely to be the manipulator selling. When the buy orders below gradually decrease, the main force seals a few hundred thousand buy orders again, attracting the last batch of retail investors to chase the rise, and then withdraws the order again, and distributes again. Therefore, a large volume limit up, nine times out of ten, is selling.

2. High position consolidation with a large volume breakthrough:

When the manipulator breaks through at a high position, it releases a large volume (generally exceeding a turnover rate of 10%). At this time, we need to calm down and think about it. The manipulator has already made a lot of profits at this time, why would the breakthrough release a large volume? It is very obvious that the large volume is the result of short-term trend-following orders and the manipulator's distribution while pulling. This is a clear manipulator selling technique. At this time, the manipulator has started to sell, can we still play?

3. Knocking out

The characteristics of knocking out:

1) A large buy order suddenly attacks, the stock price soars straight up, and then quickly falls back, repeating this process many times. The whole process is very sudden (generally completed in a few seconds of lifting and falling back), and retail investors have no response (the high stock price is made by the main force).

2) At a certain price, there is a large order pressing on the top, and there are continuous large buy orders below, creating a false impression of absorbing goods. At this time, retail investors are most likely to rush in.3) After a stock price convulsion, it returns to calm, or continues to move sideways (appearing at the beginning of the distribution phase), or falls sharply (appearing at the end of the distribution phase).

4) Knocking out of the market generally cannot be completed in one day and will continue for 3 to 5 trading days or even longer.

5) The trading volume accumulates in a short term in large amounts, but the stock price increase is very small, or even does not rise. (Volume rises, price is flat, volume increases, price stagnates)

"Red Apricot Out of the Wall" Bottom Pattern

Pattern Characteristics:

The 13-day moving average line tends to flatten from a downward trend. The stock price breaks through the 13-day moving average line from below and stabilizes above it. The positive line standing on the 13-day moving average line is called "Red Apricot Out of the Wall". Red Apricot Out of the Wall is the first entry point and also the initial starting point of the market.

Red Apricot Out of the Wall is one of the bottom patterns of the 135 battle method, is the first entry point in the 135 operating system, and is a pattern with relatively lower price and higher safety factor;

Entering from this point is equivalent to grasping the initial starting point of a wave of the market. It has the characteristics of easy recognition and fast profit, and has a strong practical significance.

Generally speaking, the individual stocks with the Red Apricot Out of the Wall pattern have the following characteristics:1. Long period of horizontal consolidation.

These types of stocks typically go through a long period of horizontal consolidation, ranging from 2 to 3 months to half a year, or even more than a year.

During the period of horizontal consolidation, these stocks basically do not offer opportunities for short-term price differences. Even patient investors may be tortured out, and the manipulator is silently completing the position building with this method of grinding people.

2. A big bullish candlestick breaking through the moving average.

After the moving averages of these stocks begin to diverge, a decisive limit-up board or big bullish candlestick suddenly appears without any signs, and the closing price of the limit-up board or big bullish candlestick is generally above the previous platform high point.

This limit-up board or big bullish candlestick is like a red apricot tree that suddenly sticks out, hence the name "Red Apricot Out of the Wall."

Short-term operation skills:

1. Hammer pattern at a low level

A hammer pattern at a low level appears in a falling trend, and the K-line looks like a hammer. This kind of pattern is called a hammer pattern at a low level. The hammer pattern at a low level is the best buying point if it crosses the body of the hammer pattern the next day.2. Low-Position Doji

A low-position doji appears in a downtrend as a candlestick resembling a doji. This pattern is called a low-position doji. The optimal buying opportunity occurs when the price crosses the doji's body on the following day after it appears.

3. Bullish Belt Hold

The bullish belt hold, also known as a marubozu with a long body, typically appears in a downtrend or consolidation trend. It features an opening price that is almost at the lowest price of the day, with no wicks or very short wicks, and a relatively long body. If the bullish belt hold appears and the stock price does not set a new low on the following day, it is the best buying opportunity.

Investment Insights

Risks arise from increases, while opportunities come from declines. A sharp market drop provides you with the chance to pick up cheap shares, which is not a bad thing, but a real opportunity. However, many people have not understood this principle after years in the stock market.

When the market crashes, many individual stocks will also fall, with most falling more and deeper than the market. The most direct reaction of some people is to cut their losses quickly and re-enter after the market stabilizes.

The stock market has patterns and trend changes. As long as you follow the laws of the stock market, you can generate income, make profits, and enjoy the process.Stock trading is a form of self-cultivation; only those who can endure loneliness can achieve enlightenment. The successful ones are often those who are willing to stand alone and be independent.

They are also the ones with a very positive mindset towards success. They regard success, wealth, and successful people as goals worth pursuing or as role models that inspire them internally.

These methods and steps are essentially very simple in nature. If you keep doing them continuously, they will prove to be highly effective.

This article is based on data and logical analysis and does not constitute buying or selling advice. Investing involves risks, and entering the market should be done with caution!

Writing is hard work, if you agree with the viewpoint, you can like it, support with a like, thank you.

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