(this article is compiled by the official account Yuesheng Wealth (YSLC168888)) for reference only and does not constitute operational advice. If you operate on your own, pay attention to position control and risk at your own risk. )
Correct trading concept
★ A trading method that matches your personality and continues to trade consistently.
★ Once a trend is formed, it will not change easily. The in and out of funds can affect the short-term running direction of the stock price, but it cannot change the general trend of the stock price. It can only play a role in accelerating or delaying the trend of the stock price. Stocks will definitely follow their own operating trends, unless the funds change from quantitative change to qualitative change.
★ There is no perfect trading method, each method has fatal psychological disorders and difficult periods.
★ Do not do long in the short market: do three things: do not increase positions, do not increase positions, and do not fill the position." The bull market does not short: do not reduce positions, do not light positions, and do not short positions". In the most dangerous situation, no one can see me; as long as I appear, it is the safest time for the market.
★ The guarantee of transaction quality is whether to implement each transaction link as planned, rather than how much money it makes. If you don’t operate according to the established plan, you will make money, which is also a mistake. If you lose money, you will be even more wrong. Because of not operating according to the plan, failure is destined in the long run. Operating according to the scheduled plan, losing money is also correct, and the money lost is just a planned risky fund. The highest investment level in the stock market is: to make continuous and stable profits while ensuring the safety of funds! If you want to survive and make profits in the stock market for a long time, you can only operate strictly as planned and repeat successful operations continuously.
★ Successful people do not use special trading methods, but the rebirth of their minds, and the high unity of personality and methods.
Signs of the market makers when bottoming out
1. W bottom
W bottom is also called a double bottom. It refers to the stock price falling for the first time during the decline, and then rebounding, but then falling again, but it stopped falling and rebounded when it encountered the last low point. The two low points were roughly the same, and the connection line was called the support line. The highs of the rebound are connected together as the neckline and also become the recent lows. After that, the stock price often fluctuates upward. This shows that the intervention of the main force formed this pattern, and therefore is a sign when the stock price bottoms out.
Figure 10-1 is the daily chart of Pioneer Electronics. Its morphological characteristics can be confirmed from the following three points: Before the bottom of
A.W, the stock price is often in a downward trend and the decline is large.
B.W bottom forms two low points, and the positions should be roughly equivalent and not too large. When the bottom of
C.W appears, the trading volume at two low points often shows a significant shrinkage and stops falling, or the positive volume of shrinkage, and the positive volume gradually increases.
As shown in Figure 1-2: After the sharp drop in late August 2015, the stock price of Pioneer Electronics (002767) has been halfway through the waist, and then fell again after the decline. On September 2, when the trading volume gradually shrinks, it hit a new low of 24.80 yuan and stopped falling, and then it appeared and rebounded. It fell again when it approached the previous decline position. The trading volume shrank again. On September 15, it hit a new low of 24.50 yuan and stopped falling again, and the positive volume gradually increased, and the stock price rebounded, thus forming a W-bottom pattern. This shows that the main force used two lows to absorb chips after a sharp drop, resulting in a rebound in the stock price when it encounters a low. Therefore, it should buy after the pattern is formed and the neckline should be retraceed and confirmed. After the W bottom is formed, the stock price will usually pull back to confirm the previous low point. At this time, the price of pullback will usually not exceed 1/3 of the previous decline. If the pullback falls below the low point connection line (support line) of the previous double bottom, it indicates that the lower support is weak and the stock price will continue to fluctuate, so the pullback is confirmed as the best buying point.
2. When the main force is forming a W bottom, if it is built, it will inevitably show a gradually increasing positive volume after a decline in volume and then rebound to the previous high point and then shrink again. If there is no obvious decline in volume and the rise gradually increases in volume, it is often impossible to confirm the entry of the main force and should continue to wait and see. After the bottom of
3.W is formed, if the main force absorbs funds at a low level during this period, there will often continue to be positive in the future market, and you can hold the stock with peace of mind at this time.
2. arc bottom
arc bottom refers to the sudden decline when the stock price fluctuates for a long period of low levels, but the decline is slow, slowly falling, and the trading volume is gradually shrinking. However, as the positive volume of transactions gradually increases, the stock price begins to rebound slowly. At this time, the K-line is mostly a small negative line or a small positive line, and the intraday oscillation amplitude is extremely small, showing a bottom pattern of an arc. This often means that the main force is taking advantage of the slow decline of the stock price and slowly absorbing chips at the low level. It is a bottom pattern and a manifestation of the stock price gradually turning from weak to strong.
Figure 10-5 is the Haitai Development weekly chart. Its morphological characteristics can be confirmed from the following four points:
A. When the arc bottom appears, the stock price is often in the bottom fluctuation.
B. When the arc bottom appears, the trading volume often shows a trend of slowly shrinking and increasing volume.
C. During the formation of the arc bottom, the K-line is mostly a small negative or a small positive line, which is in a slow down and slowly rising pattern, and the oscillation amplitude is small.
D. After the bottom of the arc appears, if the daily lowest points are connected one after another, the shape is like a semicircular arc.
As shown in Figure 10-6: Haitai Development (600082) experienced a low oscillation, from early April to early September 2014, it rose slowly after a slow decline on the weekly line. The K-line is mostly a small negative line or a small positive line, and the trading volume is also in a slow shrinkage and slow incremental state. If the low points of this period are connected together, it will be an arc bottom shape, forming an arc bottom pattern, indicating that the main force is slowly absorbing funds at the low level. Therefore, aggressive people can buy when the stock price slowly leaves the bottom of the arc, while stable people can buy when the stock price breaks through the neckline and shows a significant increase in volume.
1. Arc bottoms are relatively rare, and are more common in the long-term low-level fluctuations in the market. They are a classic pattern of stock price bottom consolidation and a clear signal for investors to take the opportunity to buy at the bottom.
2. The arc bottom often appears in large-cap stocks that some funds have heavily invested in. It is a characteristic of the main intermediary stocks. The longer the period of formation, the more solid the bottom, and the greater the increase in the future market.
3. If the arc bottom appears on the weekly line of the market, it is often a signal that the stock market changes from a long-term bear market to a bull market.
4. After the arc bottom appears, steady investors should buy when the stock price rises when it leaves the arc bottom neckline. At this time, the market has often turned, which is a good time to seize the start of the stock price rise.
5. If the arc bottom accelerates when it falls and rises, it often forms a deformed U-shaped bottom. At this time, the formation period will be shortened, but it is also a bottom shape. The difference is that the main force is rapidly suppressing stock prices and quickly absorbing funds from the bottom.
How to build a position in the dealer
The dealer enters the market silently, but no matter how cunning the dealer is, there will always be clues about the dealer's entry on the market, and some characteristics will be shown on the chart. According to the operating characteristics of the Chinese stock market for many years, the commonly used positions by market makers are:
1. Slow-up position building
Slow-up position building, also known as push-up position building or pull-up position building. The market makers adopt this method mostly because the stock price has been slowly pushed up by the market and left the bottom. The market prospects are promising, and investors are reluctant to sell, so they can only gradually push up for collection. On the chart, there will be phased characteristics, namely, advance, two, retreat one or advance, three, retreat one. First pull out two or three small positive lines, and then a small negative line. Since the dealer cannot attract enough chips at the relative bottom, the cost is higher and the risk is relatively high. Therefore, when selecting stocks, the dealer must cooperate with rich market themes, otherwise he will not be recognized by the market and there is no room for profit distribution. The prerequisite for using this method to build a position is usually to enter the market when the trend has bottomed out in the short term and begins to show signs of turning down to rising. Of course, it sometimes reflects the weak side of the dealer. Main market characteristics:
(1) The trading volume is not large overall, but it can maintain active market popularity.
(2) The daily increase and fall is not very large, and it is in a small yin and small yang pattern on the daily K-line.
(3) Small waves push up, the 30-day moving average is stable and powerful, and rarely forms large-scale technical forms.
Figure 1, Great Wall Motors (601633): After the stock was listed in September 2011, it was favored by a strong market maker. It first stabilized and rebounded at the bottom after a short-term decline and adjusted. At this time, the market maker's position was not enough, and it was obviously unrealistic to pull up quickly. Therefore, the market maker adopted a slow-up approach to build positions, and made progress, two retreats, one, and more rises, and fewer falls on the market, and pulled and absorbed to complete the position building task. The stock price rise continued until August 2013, with a cumulative increase of more than four times.
The intention of the dealer to take the market: through the slow rise of the stock price, the purpose of building positions, washing the market and changing hands, gradually lifting the bottom, laying the foundation for future rises. At the same time, it also shows that the dealer is unwilling to cooperate with short-term radical speculators, and the tepid slow-up trend makes speculators unprofitable. Moreover, it also keeps the dealer low-key trend and does not want to expose it too much in front of retail investors , which is conducive to the development of the dealer.
Retail investors' method of winning the banker: Holders have firm confidence in holding shares, and those holding coins buy yin but not yang, that is, buy when the stock price falls and closes the negative line, and do not intervene when the stock price rises and the positive line. After intervening, hold on to the stocks, mainly operate in medium and long term, and exit when the market releases a huge amount and enters a rapid pull-up. In terms of technical indicators, the 30-day moving average is used as an important reference basis. Once the support of the 30-day moving average is effectively broken, sell it immediately.
2. Tug-of-warming position building
This method of building a position has a relatively large amplitude, and the market makers' methods are extremely fierce. The stock price has risen and fallen rapidly, and it has quickly risen, allowing investors to truly appreciate the feeling of "taking the elevator". The market makers are generally relatively strong, and they pull the stock price up in a very short time. When retail investors secretly calculate profits, the stock price has returned to their original position, and the hope of making a profit is shattered again. The dealer repeatedly pushed the stock price up quickly and quickly suppressed it. Combined with the push up and suppression, many retail investors could not withstand the dealer's several struggles, so they took it as a blessing to leave the market and gave the cheap chips to the dealer. This phenomenon is more active in stocks and has a mild trading volume, basically running in an irregular box.
Figure 2, Baoti Co., Ltd. (601166): After the stock price bottomed, the dealer began to build positions on a large scale, using the tug-of-warming method of ups and downs to build positions at the bottom. There was no trace to follow on the market, which disrupted the operating thinking of retail investors. At the same time, the dealer also made a price difference between selling high and buying low in the fluctuation. After the position building task is completed, a large upward trend emerges.
The intention of the dealer to take the market: through the rapid rise and fall of the stock price, no opportunities for retail investors to make profits, and shake the confidence of retail investors in holding shares, thereby gaining chips in the hands of retail investors.
Retail investors' method of winning the market: When encountering this kind of market, do not chase the rise and sell the fall. Short-term technical experts can sell high and buy low. The upper and lower limits of the previous highs and lows are used as buying and selling points. Generally, retail investors do not participate. You can make a buying and selling decision after the stock price effectively leaves the consolidation area.
3. Counter-trend position building
As the name suggests, it is a way to build a position against the general trend. When the general trend rises, the dealer hovers at the bottom or rises slightly (or falls), giving people a feeling of "no dealer". Retail investors saw other stocks rise sharply, but the stocks they were holding remained motionless. Because they were very anxious and anxious, they wavered their confidence in stocks and sold out their stocks to chase popular stocks. When the trend fell, the dealer tried his best to support the price or fall slightly (or rise). Retail investors thought that the stocks they held would also have a rebound trend, so they moved first to avoid being trapped. They took the small favors given by the dealer and left the market to watch. The dealer was happy to take over the fund. This way of entering the dealer often does not operate according to the rules and makes strange moves frequently, which makes investors unpredictable and has better position building effects. However, the dealer's operation is risky. Once he fails, he will be trapped in a cocoon and eventually he will not be able to cash in profits.
Figure 3, Qinling Cement (600217): When the market trend was very weak from the end of August to the beginning of December 2012, the market trend was very weak, and the decline repeatedly hit a new low. However, the stock increased moderately at the bottom during the same period, climbing steadily, and the trend was very strong. However, retail investors were worried that the stock price would fall and consolidate, so they "sell high and buy low" and sold stocks, resulting in the loss of chips, which enabled the dealer to quickly complete the position building task.Since then, at the end of November 2012, the market ended its adjustment early and entered an upward trend, resulting in a wave of more than 150%.
The intention of the dealer to take the market: When the trend operation cannot work, the dealer forces retail investors to hand over their chips through anti-mass psychological operations. This is a special way to build positions and can achieve rapid position building.
Retail investors' method of winning the banker: If the market has started a round of market, if the stock is in the bottom area, it should hold the stock without moving. If it is a high-level area, beware of the market makers' shipments. Once the shipment starts, it will usher in a "diving" trend; if the market has peaked and fallen, no matter whether the stock is at the bottom or at the high level, the market makers should be prevented from shipping.
Operation mode of the dealer sorting
The basic operation mode of the dealer sorting is roughly similar to the method of building a position. According to the operating characteristics of the Chinese stock market for many years, the commonly used sorting methods of dealers are:
1. Quick sorting
Through the trial market, the dealer found that the number of intraday selling orders was not large, and the stock price rose slightly. Or the market maker knows about some favorable benefits of the stock in advance, and is afraid that the consolidation time will be delayed, so after a short period of consolidation (usually about 10 days), it will move to the next stage or directly enter the main upward market. Generally, the market conditions have warmed up, or hot sectors have appeared, or there may be major positive themes, or the dealer has absorbed enough chips.
Figure 4, Southern Huitong (000920): The sideways trend of the stock price at the bottom for half a year, finally chose the downward trend, the trading volume increased significantly, and a large number of selling markets surged out. At this time, the dealer targeted this stock and immediately intervened in the establishment of positions, which stabilized and rebounded. When the stock price hits near the previous sideways consolidation zone, it fell back. At this time, the majority of investors mistakenly thought that the resistance was heavy and the rebound was over, and they sold their stocks one after another, falling into the market maker's stock position, allowing the market maker to quickly complete the position building task and the market turned into a rising trend.
The intention of the dealer to take the market: After the dealer completes the position building and trial trading, according to the information reflected on the market, the chips are stable and the market is well controlled. Quickly sort out some unfavorable factors and enter the pull-up stage.
Retail investors' method of winning the banker: Holders can choose to sell at a high level when the stock price fluctuates upward; when it falls downward, buy at a low level. However, the time for quick sorting will not last long, and it is difficult to operate, so it is better to operate as little as possible. When the stock price increases and increases, the price will be effective in breaking through the stock price (lasts for more than 3 days), buy and go long.
2. Push-up sorting
This method is usually organized by pulling and sorting, usually the general trend has bottomed out in the medium and short term, and begins to show signs of turning down to rising. The market prospects are generally optimistic. At this time, investors have a good mentality, are full of confidence in the future market, and have a strong mentality of selling. The stock price is slowly pushed up and is easily accepted by the market. When sorting in this way, it usually occurs when the dealer controls the market with a high degree of control, the market is relaxed and relaxed in an orderly manner, and the yin and yang are intersecting, and the amount is moderate.
Figure 5, Zhonghe Shares (002070): After the dealer absorbed a large number of low-priced chips at the bottom, he successfully tried to find the bottom down, and the stock price turned from then on to fall to rise. After the dealer completed the organization task through pushing up, the stock price surged in August 2012.
The intention of the dealer to be a dealer: During the process of sorting, the dealer will relax and relax the market, constantly clearing out the profitable market, and at the same time let the coin holders intervene decisively. In this way, the chips will be completed in and out, which is equivalent to locking the chips, and the dealer will easily pull up in the future.
Retail investors' method of winning the banker: This sorting method does not take long, and the fluctuation range is not large. It is generally at a 10% to 15%. Once the stock price rises weakly, you should leave the market in time. Coin holders can buy and go long when the stock price falls near the previous low.
3. Wave-style organization
stock price runs rhythmically in a wavy shape, achieving the intention of taking the market by exchanging time for space. After the stock price has completed a wave of rising trend, it will fall back and consolidate, and then pull up again to consolidate. The peaks and valleys on the market are very clear, the operation context of the market makers is obvious, and the rules of stock price fluctuations are easy to master (but in the end it will break this pattern). Generally, the decline rate is 1/2~2/3 of the increase, and even falls to near the previous low.Generally, it occurs in stocks with better growth potential and the external environment is relatively stable. This phenomenon is mostly caused by strong market investors and long market investors and long market investors and control.
Figure 6, Kangdexin (002450): After listing, it was spotted by a strong dealer. After absorbing a large number of chips, it began to push up the stock price. During the rise of the stock price, the dealer regularly pushed the stock price upward and consolidated wave by wave, forming a wave-consolidation trend. The stock price trend was very strong, and the bull market continued for more than three years. As of the end of August 2013, the cumulative increase had exceeded 6 times.
The intention of the dealer to take the market: After several rounds and turns, the stock price will form obvious highs and lows, which will prompt retail investors to grasp the operating rules of the stock price and form their own operating patterns. But in the end, when retail investors operate according to this thinking pattern, the dealer completely changes the old methods according to the market situation. When retail investors sell their stocks, the stock price rises straight and no longer falls, which makes the sell-off retail investors feel deeply regretful; when retail investors buy stocks, the stock price plummets and falls deeply, and the rebound is powerless, causing the intervening to lose a lot of losses.
Retail investors' method of winning the banker: When encountering a wave-like consolidation trend, you can perform band operations appropriately based on the high and low points, but the position should not be too heavy. Generally, the rise and fall of the latter wave is equal to that of the previous wave, and the difference is generally not greater than 10%, so it can be referenced from each other. According to observation experience, the wave shapes of the first three waves are more regular and have a high accuracy rate. The wave shapes after 4 waves are not very accurate, and there may be changes in the disk, so you should operate with caution. It should be noted that the wave shape here is not the wave shape in Elliott's wave theory, and should be strictly distinguished.
When will the dealer shake the position
shake the position for the dealer , who doesn't want to spend time on pulling up stocks?
However, the low-cost stocks of a large number of investors also force the dealer to perform shock positions. To know how the dealer shakes the position, you must first understand where the dealer often shakes the position. There is no need for the top dealer to shake the position, because at this time what the dealer needs to do is to sell stocks as much as possible. Shocking the position will only waste time and will not achieve the purpose of shipment. The market maker's shock position is often found in three ranges: before building a position, before pulling up the stock price, and during the rise. Only by shaking the position in the long range of the market maker can the goal of the market maker achieve the goal. There is no need for shaking the position other than this.
Paiqujiu (600702) Trend chart from November 2008 to March 2009 (Figure 5-1) After the stock price of
fell to the bottom, it can be seen that the trading volume formed a state of several times amplification, and the volume amplified in the low range shows the intervention of the market makers' funds.
The trading volume has been continuously amplified before January 2009, and the signs of market makers building positions and increasing positions are very obvious. During the range of the market maker's position building, the stock price showed multiple fluctuations. The slight rise in the stock price corresponds to the amplification of trading volume, and the decline in the stock price corresponds to the shrinking of trading volume.
The shrinking volume of the stock price is a shock behavior of the market makers when building positions. The purpose of shaking positions in the position building range is to expand the space for building positions and to make the cost of building positions as uniform as possible. After the stock price falls, the market makers will have the opportunity to buy on dips again.
Pu Development Bank (6000000) from November to December 2008 (Figure 5-2)
The trading volume began to increase in the last stage of the decline of the stock price, which shows that the dealer may start to build positions in advance during the decline. The funds that dare to build positions during the decline must be the most powerful funds in the market. In their eyes, although the stock price has temporarily fallen, the current price is still very low compared to the later increase.
The stock price fell to the real lowest point and began to rise, while the trading volume continued to increase. It seems that the market maker's position building operation is indeed very continuous. After the first wave of rising market ended, the stock price fell rapidly in the short term, and the trading volume shrank, but soon the stock price rebounded again, and the overall pattern formed a wide range of fluctuations.
The increase in volume is caused by the intervention of the market makers' funds, while the shrinking volume is the shock behavior of the market makers. After the stock price falls, the cost of building a position of the market makers will be reduced. At the same time, the decline range corresponds to future rises, and the entire range can be used to buy stocks.
Jiabao Group (600622) December 2008 trend chart (Figure 5-3)
After the stock price fell, the trading volume continued to increase, and a short-term upward trend followed, but soon the decline trend appeared again. The trading volume shrank significantly during the decline, which shows that the market makers did not sell stocks in large quantities when the stock price fell. The decline of the stock price at this time was just the market makers' shock behavior.
Since buying in positions is bound to increase, this will push up the stock price. If the market maker ignores it, the cost of building a position will increase. Therefore, after the stock price rises to a certain extent, it is very necessary for the market maker to turn the stock price back and then continue to increase the position at the low level to buy stocks. The greater the fluctuation of the stock price in the position building range, the easier it is to destroy the firm holding mentality of investors. As long as investors hand over the stocks in their hands, the dealer will achieve the purpose of building a position.
The shock of the position in the building range can help the market makers extend the time of building positions, reduce the cost of building positions, and keep the total cost of building positions within a small range. Therefore, the market makers must perform shock operations when building positions, because this operation will only benefit the market makers but not harm them.
Stop loss awareness and technology that retail investors must have
Although Buffett said, "You must have 50% loss preparation when entering the market." Soros said, "You must have the courage to be a pig." But in order to protect your funds and maintain a happy mood, you must still resolutely stop loss without wavering.
When the trend is not good, the thirty-six strategies are the best, and it is correct to sell whenever you sell it. After the downward trend is formed, it is irresistible. The defeat is like a mountain falling, and the stocks are like a sky swelling. It cannot be aided, and it can be avoided.
shares proverb says that it is the master who can buy it, and it is the master who can sell it. It is better to sell it than to buy it. If you buy the right one, you don’t have to consider stop loss. If you buy the wrong one, you must firmly stop loss.
stop loss line is the lifeline of retail investors. You cannot have fantasies. You often suffer losses due to lack of enforcement discipline. If you are trapped, don’t wait passively. You must have the courage to admit your mistakes and stop the loss and sell immediately. If you buy the wrong one, stop loss, stop loss if you break the right one, and stop loss if you lose a lot, especially if you read the wrong one at a high one, you will firmly stop loss if you read it wrongly. Stop loss is an active and advanced stop loss, not a passive stop loss. It is necessary to turn risks at the beginning of the signs and risks invisibly. When
falls, the hero cuts his arm and is brave enough to stop losses to avoid greater losses. He breaks early and gets free early. The earlier he admits the compensation, the smaller the loss. You are not afraid of mistakes, you are afraid of not admitting mistakes or procrastinating. If you make mistakes and delays, you will suffer greater losses. It is difficult to know the mistakes, and it is even more difficult to correct them. If you keep it to the end, it will inevitably be a deep trap.
The shallow set is to embrace the fantasy, the middle set is not enough to put the hand, the deep set is let go. This will miss the best selling point, and the result will be torture of long-term traps or the pain of cutting off the flesh. It’s better to sell the wrong ones than to leave the wrong ones. Stop loss is like a brake device. Do you dare to drive a car without a brake device?
stop loss cannot be waited and waited. Sometimes the technical indicators have clearly indicated changes in the upward trend, and you have to wait for a blind rebound and wait for good news. Instead of waiting passively to get rid of the condom, it is better to cut your losses in time to catch up with the hot spots. The loss part has already come out.
stop loss cannot be compared with the highest price. If you don’t sell when it rises, you still want to rise again; if you don’t sell when it rises, you can’t sell even if it falls. If you want to sell, you have to sell again; if you don’t sell small losses, how can you sell big losses?
stop loss cannot be hesitated. Only the courage to catch up, but not the determination to fight, you cannot make up your mind, you cannot stop loss in time, and you cannot resolutely stop loss in the first time. The more hesitant, the deeper you get, so you can't get rid of yourself.
Stop loss cannot have fantasies. If you don’t care, you will be lucky, and you will have miracles if you fantasize about it. Other stocks have risen, and it’s my turn to rise, but my fantasy is always shattered in anticipation.
Stop loss cannot be stubborn. The deeper I trap, the more I persisted, and resisted stubbornly, and the more I trapped, the less I didn’t sell. I believe that one day it will rise. Anyway, I don’t wait for money to use it, so let’s go. I don't care about it anymore. I don't want this money anymore. I can do whatever I want. Isn’t this exactly what the dealer expects to see, and inadvertently helps the dealer with it.
stop loss cannot be considered cost.When it is a sharp drop and a plunge, you cannot think that you cannot sell without reaching the cost price. This is not a reason to not stop loss. To see if there is still a possibility of a decline, it is better to lose less and never lose more. We must forget the cost, which is to preserve the only capital and be able to recover the original cost as soon as possible.
Stop loss cannot be respectful. No one can win every battle in the stock market, it is impossible to make mistakes without making any mistakes at once, people will always be confused. Some retail investors are unwilling to stop losses, afraid of proving that they are wrong in choosing stocks, afraid of proving that their IQ is low, or that they are not the only one who loses. Anyway, everyone loses.
Some people say that insisting on not selling is not considered a loss, and persevering in the end is victory. This is essentially a dead cover, and it will not stop loss if you are trapped. I heard that some retail investors rose after selling at a low level; some could not tolerate huge losses and took extreme actions in the bottom area. This means that they did not persevere to the end and gave up when they were about to win.
The stock market is falling. What point is at the end and how long it will take is not predictable by ordinary retail investors, nor is it that most retail investors can stick to it. They don’t know when they can rise after stopping the decline. Your prediction is often inaccurate, and patience will definitely not be able to withstand the dealer. The dealer will break your psychological limit, and you have to swing your knife to stop the loss and get out of the game. It is in line with the saying "Retail investors are weird. If you make money, you won't sell and lose."
As long as the long-term upward trend has become a downward trend, instead of being trapped by 30%-40% or even 50%-60% (this range is too large and not something that retail investors can bear), why not stop the loss if they are around 5%, and the maximum limit does not exceed 10%, then they will resolutely stop the loss?
instead of holding a burden on the head that is trapped in the mountains, it is better to stop the loss and get out. It can clear your mind, reduce your psychological burden, and relax. When you see the tragic situation of falling to the bottom, you will be glad that you cut your losses correctly.
When you encounter difficulties in your work, perseverance is success. When the stock market is in a low tide, you will insist on dying and stop losing money but will lose a lot of money until you get trapped and completely lose your combat effectiveness.
Before you think about advancement, think about retreating first. Stop loss should vary according to the trend and adapt to stock conditions. If you are short-term, you should set a stop loss and take profit position immediately after buying stocks. When a bull market or upward trend or bottom starts, the loss is about 5%; when a bear market or downward trend, the loss is about 3%-5%, and you will firmly stop the loss without asking reasons.
If you are doing long-term, you don’t have to care about small fluctuations. As long as the trend does not change, you can hold shares, and the stop loss and take-profit levels can be appropriately relaxed. If you buy a quilt on the same day, and do not ask the reason the next day, you can sell it or choose a high price at the opening. Even if it opens low, it has increased its losses compared to yesterday, so we must sell it resolutely and in a timely manner. Be extra careful with heavily held stocks, because they account for a large amount of capital weight, so the losses will be greater.
not only needs to stop loss, but also take profit. The first line of defense at the stop-profit point is to stop profit by falling by about 3% from a high level. If you do not stop profit in time at this time, the second line of defense, and the last line of defense, are to resolutely stop profit above the profit and loss point, and you cannot make profits turn into losses. This is just a matter of more profits and less profits. You cannot think that I have already made a profit anyway, and I am not afraid of falling. With this idea, I will make concessions step by step, and see that profits turn into losses.
Strong stocks or hot stocks in the upward trend can generally not stop loss, and weak stocks or unpopular stocks in the downward trend should be resolutely stopped loss.
If you cannot stop loss in time, you will always hesitate and cannot make trouble. After buying stocks, you must resolutely place a sell order at a stop loss amount of about 3%-5% (including handling fees), let the software force itself to stop loss, and let the software complete the responsibility of protecting itself.
Traditional Chinese medicine says: "The best doctors will cure the disease before the disease is cured." Sun Tzu's Art of War says: "If you have not fought and you have to win, you will have to count as many people." It is better to be clever than to be uncontaminated by buying stocks, and it is better to be clever to not stop loss than to be stopped loss. Stop loss is to make money, not to stop loss simply for the sake of being beautiful. Stop loss is not the purpose. Stop loss is only a last resort when there are sudden negative news, when you cannot watch the market in time for some reason, when you miss a good opportunity to sell, or when you make a mistake in your analysis, or when you are hot-headed and stubborn, causing losses. This is the final emergency self-protection measure.
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