Two beggars met to find a country strategist, hoping that the country strategist could make some tricks so that they could easily beg for a large amount of money. The country adviser thought about it for a while, then took out two signs, picked up a pen and wrote "The more you get better" and "Only one yuan" on these two signs. After writing
, he said to the two beggars: "You choose, but after choosing, you must do what I said. After getting the 'Do much better', the person who gets the 'Give more, the more', after giving them money, the person who gets the 'Give more, the more'; the person who gets the 'Charge only one yuan' cannot charge others a cent. If others really don't have 1 yuan change, they must find change. We are limited to one year. After a year, the two of you must come back here to see who asks for more money."
Beggar A is big and before the country counselor finishes his words, he snatched in front of beggar B, picked up the sign with the words "Do much better" and ran away, humming, "I'll make you rich this time"; beggar B had no choice but to take the sign with the words "Do only one yuan" and left dejectedly.
A year later, the two beggars came to the home of the country counselor again as agreed. Beggar A still looked like a year ago, poor, sour, smelly, and was beaten to the point of bruising and swollen by others; Beggar B is very different. Not only is she dressed well, but she also drove a car. Beggar A's hand had cracks on the edge of the brand that said "The more you get better". Obviously, when beggar A couldn't get money, he would occasionally take the brand and vent his anger. He would inevitably say a few bad words from country counselors behind his back; Beggar B's hand had a "only one yuan" brand that had been inlaid with gold edges, and he planned to collect this brand as a family heirloom. Beggar A is still a beggar, but Beggar B no longer becomes a beggar. He asked for a lot of money in a year and used it to do business, and the business became more and more prosperous.
The country strategist said to the beggar A: "Do you want to know why he asks for more money than you? Because of the four words - greed will lead to losses."
In fact, when we do stocks, we are very similar to the above story. We enter the stock market with the same purpose, but we have two or even many completely different mentalities, and different mentalities will inevitably lead to different results.
It should be said that most people are like beggar A, who thinks that "the more you get better". However, the amount of money you get in the process of asking for money depends entirely on the preferences of the donor, and they have no initiative at all. The same is true for us to trade stocks. It is normal for us to make more money, but the stock market is impermanent, and there will inevitably be great risks behind big returns. Because we are greedy for too much, we often "take the elevator", which is considered to be a bruised and swollen by the main institutions. When buying a stock that you bought for 10 yuan, you told yourself that you would definitely sell it if it rose to 15 yuan, but when it really reached 15 yuan, you hope that it would rise to 20 yuan, and you even hope that when you wake up tomorrow morning, the stock will rise to 100 yuan. As a result, the next day I found that the stock turned around. The stock turned around and it would be fine if it could correct the mistakes in time, but I was lucky and thought that as long as I had a slight adjustment, I could stand up to 15 yuan again and make a vow to myself that I would definitely sell it if I had another 15 yuan. But there are often only two results. The first case is that the stock plummets down three thousand feet; the second case is that when it really returns to 15 yuan, it is reluctant to sell it. It is under such psychological struggle that retail investors have become the seven people in the sentence "Ten people trade stocks, seven people lose money".
The brand in the hands of beggar B can be said to be the trump card in the stock market and the unbeaten rule for making profits in stock trading. "Only one yuan" does not mean that we should do ultra-short-term trading and run immediately after making money, but that we should follow two principles when we trade stocks. First, be content and happiness. In other words, if a stock worth 10 yuan can rise to 15 yuan, you will be content. Sell it and wait for the next stock like this. Second, abide by discipline. After writing the sign, the country strategist told the person who got the sign "Only One Yuan" that even if the other party gives him more money, he must make change, and this is discipline.We can imagine that if beggar B does not abide by this discipline, it will be no different from the brand "The more you have, the better you have," and maybe it will not be as good as "The more you have, the better you have,"! We should also require ourselves to strictly abide by discipline when trading stocks. When it comes to 15 yuan, we must sell it in time. As the saying goes, there is no grass everywhere in the world. There is more than one good stock, so why hang yourself on a tree? In addition, abiding by discipline requires restraining yourself and endure more when you shouldn’t buy it.
Make profits by trading stocks. Although the method is important, it is not the most important. The most important thing is concepts, discipline and mentality. It is easy to change methods, but it is very difficult to change ideas, discipline and mentality. This requires us to fight against our innate human nature.
MACD indicator The importance of is reflected in:
(1) The MACD indicator is the default preferred indicator in major stocks and futures market software.
(2) MACD indicator is of course the most used indicator, and it is the most effective and practical indicator that has been tested by history.
(3) The MACD indicator is an oscillating indicator calculated from the trend-type moving average indicator EMA, and has good application effects on trends and oscillating markets.
(4) The divergence of MACD indicators is considered to be one of the best technical analysis methods for "buying the bottom and escaping the top".
(5) MACD indicator is the first choice introductory indicator, and it is the beginning of many investors entering the index research. It is also the ultimate indicator that many people have come into contact with other indicators, even created their own indicators or used indicator combinations, and finally returned to the original and still used. The so-called "I searched for her in the crowd for thousands of times, but when I looked back, the person was in the dim light."
(6) The MACD indicator is one of the most commonly used basis for entry and exit for systematic traders, and is widely used to judge buying points and selling points and market bulls and short conditions.
MACD index is a trend-type index that is based on the construction principle of moving average, smoothes the closing price of the trend price, calculates the arithmetic average value, and then calculates it. In theory, it can be operated based on the position where DIF and MACD are located, the crossover situation, the scaling situation of the red and green columns, and the deviation from the K-line.
top divergence :
When the stock price K-line chart moves one peak and one peak, the stock price keeps rising, and the trend of the graph composed of red columns on the MACD indicator graph is one peak and one peak, that is, when the high point of the stock price is higher than the previous high point, and the high point of the MACD indicator is lower than the previous high point, this is called the top divergence phenomenon. The top divergence phenomenon is generally a signal that the stock price is about to reverse and turn around at a high level, indicating that the stock price is about to fall in the short term, which is a signal of selling stocks.
top divergence case explanation:
stock price has risen for a period of time, and the top divergence of MACD refers to the stock price being flat or high with the previous high stock price (look at macroscopic, roughly, look at the stock price trend). The DIFF in the MACD indicator does not sync upward with the price but is lower or flat (look at closely, it is more operable than the numerical size). In the cdl indicator, DIFF turns from red to green. The price depends on the trend, not necessarily the highest or lowest, or the closing price, but the rough look. The DIFF below should be compared with the previous peak, so it should be accurate. The usage method is to not look at the above price, but only look at the highest point of the DIFF of MACD. As long as this new peak does not have the previous high, it will be considered a divergence, and generally there will be at least 15% drop.
What I want to explain here is that the MACD divergence mentioned in the textbook is the MACD ratio between the stock price and the MACD indicator, and what I am here is the DIFF ratio between the stock price and the MACD indicator.
MACD top divergence refers to the index hitting a new high, while the MACD high point is moving downward. [Note: The second wave of attack has become weak, the selling pressure at the high level is gradually increasing, and the short side is slowly taking the initiative]
MACD top bottom divergence key points of tactics:
1. The MACD top divergence in the upward trend and the MACD bottom divergence in the downward trend have a great reference value in actual combat, while the top and bottom divergence in the platform oscillation is actually not very meaningful!
2. The second high point of MACD top divergence is the selling time; the second low point of MACD bottom divergence is the buying time.
MACD top divergence:
1. After multiple consecutive top divergences, it means that the probability of a decline in the future is greater, and the decline will be greater;
2. After the first top divergence is formed, you should reduce your position or leave the market. The oscillation and rise after the top divergence is formed has a strong inducement and multi-population nature;
However, there is a little hope to pay attention to it. After the top and bottom divergence occurs, it does not mean that a reversal market will appear immediately. The market may still undergo inertia for a short period of time, and then the market will repair
2. Bottom divergence
Bottom divergence generally occurs in the low area of the stock price. When the stock trend on the stock price K-line chart is still falling, the trend of the graph composed of green columns on the MACD indicator graph is one bottom to one bottom, that is, when the low point of the stock price is lower than the previous low point, while the low point of the indicator is higher than the previous low point, this is called the bottom divergence phenomenon. The bottom divergence phenomenon is generally a signal that indicates that the stock price may reverse upward at a low level, indicating that the stock price may rebound upward in the short term, and is a signal of buying stocks in the short term.
bottom divergence case practical explanation:
On the other hand, it is the MACD bottom divergence. The stock price hits a new low, and DIFF no longer hits a new low (there should be a lowest point in the front). The day after this low point is the bottom divergence point. Note: this low point is formed by the rise in the next day, and the bottom divergence point is a reference point for purchases.
usage is to not look at the stock price above, only look at DIFF, no longer hit a low, which caused the low point to be the bottom divergence point.
MACD bottom divergence refers to the index hitting a new low, while the low point of MACD is rising. [Note: The momentum of the second wave of sell-off has been exhausted, and the low-level acceptance strength is gradually strengthening, and the multi-party begins to take the initiative]
MACD bottom divergence:
1. After multiple consecutive bottom divergences, it means that the future market rebound is greater, and the increase will also be large;
2. You can buy appropriately after the first bottom divergence. If a second bottom divergence occurs, add positions to enter the market;
has a divergence function in almost all technical indicators, which means that the market trend is about to reach a peak or bottom, among which MACD has this prompt effect. Investors can use the divergence function of these indicators to predict the risk of the head and the buying opportunity at the bottom, but should be appropriately extended in the selected time parameters. There are often many divergence phenomena in the financial market, which may seem incredible at first glance. Although there are many indicators that have lag, we can use MACD skillfully to maximize our returns
MACD 5 buying patterns
1. After the golden cross, the upward and downward, then rebound
As shown in the figure, after the golden cross between DIF and DEA, it rises with the upward trend of the stock price, and then goes downward with the pullback of the stock price. When the main force washes the market, the stock price pulls back, and when the DIF line pulls back near the MACD line 0 value, the DIF line reverses upward, causing a golden cross to rise and then rebound pattern. This is an opportunity to buy.
2. After the golden fork below the zero axis, the dead cross is over and the golden cross is over again
DIF After the golden cross DEA line below the zero axis, it does not penetrate the zero axis or passes a little up and then returns to the zero axis, and then passes the dead cross DEA line downward, and then crosses the golden cross DEA line again after a few days. This pattern is the bottom pattern that appears when the stock price falls and hits the bottom of , and the sell-off is exhausted. It should be understood as a bottoming rebound signal and can enter the market at the right time.
3. The dead fork passes through the zero axis rebounds, and the golden fork
dead fork passes through the zero axis rebound becomes a golden fork refers to the DIF line that is dead fork DEA line above the zero axis, and then the golden fork DEA line above the zero axis or the zero axis. This pattern is formed by the stock price consolidation on the way to bottom out and rebound. Some are also bottoming out patterns, showing an upward attack. It should be understood as a signal of active intervention and should enter the market decisively.
4. No dead fork callback under the golden fork zero axis
No dead fork callback under the golden fork zero axis refers to the DIF line of the golden fork DEA below the zero axis. Then, it will call back without crossing the zero axis and move closer to the DEA. The MACD red column shortens, but if there is no dead fork DEA, it will turn upward again, and at the same time, it will be lengthened with the MACD red column.The formation of this pattern is mostly a bottom pattern, which is the bottom pattern that appears when the stock price falls and bottoms out and sells out. It should be understood as the main position building area and can be intervened at the right time.
5. After the golden fork cross axis callback, the two lines are bonded and separated
Golden fork cross axis callback, the two lines are bonded and separated after the two lines are bonded and separated refer to the DIF in the MACD indicator before the golden fork DEA line below the zero axis, and then run on the zero axis for a period of time, and then as the stock price pulls back, the DIF also begins to call downward. When DIF is adjusted to the DEA line, the two lines are glued into one line. When they separate again and the bulls diverge, a buying opportunity is formed and a new rise begins. The appearance of this pattern is mostly caused by upper-level consolidation and main washing. After a brief consolidation on the way upward, the stock price shows a strong upward pattern. It should be understood as a signal of active intervention and decisive buying.
MACD Selling Simple Tips
macd Best Selling Point: Diff Line Dead Cross Dea Line One Dead Cross Day Sell
Selling Points;
(1) If the dead cross pattern of the macd indicator appears below the 0 axis or near the 0 axis, it is a very strong selling signal. If the dead cross of the macd indicator appears at a very high position above the 0 axis, it means that the ancient exchange is still in the rising market. Although the short side temporarily gains an advantage, the long-term upward trend of the stock price is difficult to change in the short term.
(2) When macd appears near the 0 axis, it means that the bulls surpass the shorts while the market trend changes from an upward trend to a downward trend. The bearish signal strength of this position must exceed the dead cross pattern of the 0 axis. The dead cross pattern of the 0 axis is
macd Best selling point: Dea line and the stock price appear to diverge from the top when the stock price falls.
selling point details: When the bar line and the stock price diverges from the top, see the selling signal. When the two diverge three times in a row, the pattern has been completed. At this time, investors can clear some of their positions. When the stock price peaks and falls below the previous pullback low point, it means that the downward trend has been formed. Investors should sell the stocks in their hands and wait for the next buying opportunity
2. When the macd bar and the stock price diverge, the dea line is often still in the process of rising, but its rise is getting slower and slower. That is to say, the selling signal sent by the contraction when the macd bar diverges from the top is earlier than the dea line. Operation according to this pattern, investing can effectively avoid the decline, which causes losses on the one hand. If the trading volume continues to sluggish when the macd bar and the stock price diverges, the bulls' subsequent strength will be more reliable in this case.
Understanding knowledge and action, perseverance, and dripping water will eventually lead to good returns
Not to hide, I firmly respect the management of funds in transactions; I believe that if you want to maintain an invincible position in the long run, scientific fund management is essential! The problems solved by fund management are related to our survival and death in the futures loan market. As a successful trader, whoever laughs the most beautifully! The increase in capital management is precisely the so-called winning in the last chance!
Many traders always try to find the so-called master key that is once and for all at the beginning of trading, but even if they lose everything, they don’t understand it. It is his whimsical thinking that leads him into the maze of no return! Of course, research and grasp of the market is essential. If your trading signal success rate is very low, then no matter how good the capital management is, it is difficult to change your speculation fate. Fund management only changes the amplitude of the trajectory of equity, but it must not change the direction of its operation! But this is not the key to the problem. Many traders do not understand that the market is a combination of randomness and laws. Any idea of completely, thoroughly and accurately grasping trading is a manifestation of arrogance, ignorance and stupidity. Being able to perfectly grasp every opportunity is just an unattainable dream! In fact, true success is to strictly manage funds, control risks, expand profits, and achieve compound interest on the basis of grasping the market rhythm!
again emphasizes here that the winning rate is only one factor, and the winning rate does not determine your overall winning or loss. It only indicates the proportion of your profits in and out, and does not fully consider the size of your profit margin.In fact, when the trading signal has a positive expectation value, then capital management will make your overall equity more prominent, but without reasonable capital management, even your high winning trading system may bring you not benefits, but losses. The difficulty of stock investment is not the market strategy of stock investment, because there is not much difference in how to enter and exit the market. The real change lies in the importance of capital management. Although capital management is full of dilemma and contradictory dilemma for stock investment, it has a very special significance to successful people, and we must fully recognize this. Only by mastering scientific principles, learning from other people's experiences, and then combining your own style to form a set of fund management methods that suit you can survive for a long time in the stock market and then progress to success.
adheres to capital management, achieves big wins and small losses, and makes steady profits. Start from small things. As time goes by, small streams will also gather into a sea of compound interest. The market performance of a trading expert should be that he can obtain stable and continuous compound interest returns for many years, and make money over the years instead of getting rich. The high profits in the capital market should come from the result of continuous profits under long-term accumulation of low risks. Professional traders only pursue the most reliable ones, and only amateur low-key players only focus on profit maximization and satisfy in short-term glory. Time is the terrible power to truly achieve compound interest! Without this principle basis, our transactions will be worthless! Nothing will make no sense if you lose your firm execution on it! It is easy for a person to abide by trading principles at the moment, but the difficulty lies in sticking to principles throughout his life. He must have the belief of sticking to principles even until the end of his life. In fact, trading is very simple. Life is important in persistence, and trading is even more important in persistence!
Success must come from adhering to the correct habits and methods and constantly improving character cultivation. Perseverance, patience, confidence and tenacious and persistent accumulation is the professional trading attitude. Profits are the product of risk rather than desires. Risks are always the first priority. Under any circumstances, the fund management plan must be strictly formulated and implemented to prevent abnormal declines in account rights. Whether you can clearly, quantitatively and systematically limit your single and total operational risks is the dividing point that distinguishes winners and losers, followed by talent, diligence and luck to achieve greater results.
