How to trade stocks, this is the content of a book. Due to the word limit of the headline, you can only "write the key headline" (a lot of content is basically covered in the published articles)
Stock speculation is a very simple operation, which is the 8 words of "following the trend" and "following the funds".
(It can also be called: "Don't predict, just follow.") Six-word mantra "stock speculation method")
Unfold these 8 words, but "the connotation is extremely rich and complicated"!
1. "Follow the trend"
How to "follow the trend"?
It is to "follow the trend of the market", "follow the trend of the plate (concept)", and "follow the trend of individual stocks".
1. "Follow the trend of the market" is "follow the trend of the market index".
Our ordinary retail investors generally participate in the trend of "stocks starting with 6, stocks starting with 00, and stocks starting with 3", that is, they want to "go with the trend": "Shanghai Composite Index" (the index of stocks starting with 6), "Shenzhen Stock Exchange Component Index" (the index of stocks starting with 00), and "ChiNext Index" (the index of stocks starting with 3).
For example, 2015 --- 2019 were the "three major indexes" correction period, that is, the "bear market". In a bear market, the best operation is to wait for a short position.
Another example: the end of 2019 --- the beginning of 2022 is the period of the "three major indexes", that is, the "bull market". In the bull market, the best operation is to gamble with a full position to gamble on individual stocks that have been falling for a long time, have capital attention, and have just begun to rise. The 2019-2022 bull market is more special, it is the bull market of the "ChiNext Index and the Shenzhen Component Index" that is "very good", but the "bull market" of the "Shanghai Composite Index" is only "after the appropriate rise, the low-level box shocks and shocks" (in the future, whether this situation will be normalized needs to be paid attention to).
Another example: the beginning of 2022 ---- today (January 20, 2024) is the correction period of the "three major indexes", that is, the "bear market". The best operation is to "wait for the fall of the short position". When to start another wave of "bull market", you need to be patient!
2. "Follow the trend of the plate (concept)" is to follow the "peak and trough of the plate (concept)" and carry out the operation of "leaving and entering". The conversion of the peaks and troughs of a certain plate must be caused by the "conversion of peaks and troughs" of individual stocks in this sector. Follow the volatile sectors and look for individual stocks in the volatile sectors, so that it is easier to make money!
3. "Follow the trend of individual stocks" is to follow the "peaks and troughs of individual stocks" and consider whether to "leave and enter". I have talked about it in previous articles on how to choose individual stocks. The main thing is to "look at the stock price on the monthly line, look at the stock price trend on the weekly line, look at the participation opportunity on the daily line, and look at the positions that can be piled up".
4. "The trend of the K-line". "The stock price is always sticking to the 5-day moving average", the stock price rises too fast, just wait for the "5-day moving average", and the stock price pulls back too much, "the 5-day moving average will be close to the stock price, so that the stock price sticks". Therefore, "the 5-day moving average is again a reference moving average for short-term operations".
"The trend of the K-line of the month", "The trend of the K-line of the week", "The trend of the K-line of the sun", all of them. This is one of the "references for adding positions, opening positions, and doing T". The core reference also depends on the "degree of cooperation of the amount of funds". Without the appropriate amount of funds to follow, the stock price is like a "kite with a broken string"!
5. "The Trend of Measuring Energy". The magnitude of the volume of energy is the source of the power of stock price fluctuations by the shadow of the "equal amount of transactions, (i.e., the number of transactions)".
Without the accumulation of moderate incremental accumulation of quantity and energy, individual stocks will not have "stock prices continue to rise". In the same way, the continuous shrinkage of volume and shrinkage is a sign of continued flight of funds and the "root cause" of the continuous correction of stock prices. Through the change of quantity and energy, it is possible to predict the "future fluctuation trend" of "the market, sector" and "a certain stock".
Therefore, "the potential of the monthly K-line", "the potential of the weekly K-line", and "the potential of the daily K-line" are the "key" of stock speculation.
6. "Go with the flow of emotions". "Emotions are the ideological trends and actual operation signs of buying and selling among investors (including institutions, floating capital, and retail investors) who are participating in the stock market game in the entire stock market."
The collective or majority of the shareholders participating in the game in the intraday are bullish and rush to buy, which is the sentiment of bullishness together. Some "teachers of the leading strategy" call the situation of "looking long together and grabbing chips" as the "main emotional rise period", that is, "the period when the trough fluctuates to the peak", that is, the "pulling up period". In such a period, following the "hot stocks in the hot plate", the probability of making money is very large!
The collective or majority of the shareholders participating in the game in the intraday are bearish and rush to sell, which is a bearish sentiment together. Some "teachers of leading tactics" call this situation a "period of emotional ebb and flow", and it is also a "period of fluctuations from the peak to the trough", that is, the "correction period". In such a period, the probability of losing money is very high when you participate in the game again.
The collective or majority of the shareholders participating in the game in the intraday are mainly wait-and-see, which is a "short wait-and-see or light wait-and-see" sentiment. Some "teachers of leading tactics" call it the "emotional chaos period", which is also the "index shock period", that is, the "shock period". In such a period, profit and loss are very difficult to control.
In addition, due to the "default in the village" and "the consensus of market participants", there will be a consensus sentiment of "the number of boards" in the market. For example, we recognize the emotion of "5 even board heights", the emotion of "one into two" or "two into three", the emotion of "continuous falling limit", the emotion of "earth and skyboard", the emotion of "sky floor", and so on.
7. Follow the mood of "leading the trend". There is a high-standard leader in the intraday, indicating that "the height of individual stocks in the intraday can rise in the near future". With "example" and "leadership", the funds will be "bold", the sentiment of the funds will be high, the sentiment of the funds will be aggressive, and the market index, the hot plate index, the leading benchmark, and the leading brothers and sisters will take turns to "attack". The emotion of taking turns to attack is the "main emotional upswing period", which is the easiest period to participate in the game to make money.
Second, follow the funds
How to "follow the funds"?
1. Where are the funds found?
a, review every day to see which sector (concept) the funds are concentrated into?
b, review every day, to see the continuous leadership of the high-standard leader in the market, this is the flow of funds vane.
c, review every day to see the situation of the board.
d, call auction every day to see the high opening rate of the next day
2. How to "follow the funds"?
a, in the "plate (concept)" with a large number of "price limits", find individual stocks.
In a certain sector (concept), if the number of "up-limit boards" is the largest for many consecutive days, this is a "symbol" of concentrated capital inflow.
In the "sector (concept)" where funds flow into the market, finding individual stocks is the best operation.
b, in the "up limit" of individual stocks, find individual stocks. The "price limit" will not be the behavior of retail investors, but generally the behavior of the main funds. Stocks with the main capital behavior entering, no matter how tossed, will not "only rise to the height of a price limit", as long as there is a continuous amount of energy to cooperate, it will continue to attack. (No one knows that individual stocks without a price limit can still get the attention of the main funds.) ）
c, in the "quantity and energy is moderately piled up" plate (concept), look for individual stocks. The accumulation of energy in a sector (concept) and the continuous moderate amplification of the volume energy are caused by the combination of "the volume and energy of individual stocks within it".
d, in the "amount of energy is moderately piled up" stocks, look for stocks. The amount of energy is moderately piled up, which is caused by the continuous inflow of funds into the "knock-on" transaction. Once a main fund or several groups of group funds or drumming and passing flowers, identify a certain stock, it will not easily "stop rising". This is also the main reason why "demon stocks" continue to be "demon stocks" and "demon stocks" are more "demonic".
e, in the plate (concept) of "moderate accumulation of energy + trough", find individual stocks. Any sector also has a cycle, and it will also take turns in waves.
f, in the "volume can be moderately piled up + small cap + low monthly line + weekly line has just begun to trend upward + daily trough" stocks, look for stocks. The purpose of any capital entering the stock market is the same: "buy low and sell high, and make money with ideas"! Big funds prefer to "game" in individual stocks that are "easy to pull up"!
j, in the category of "moderate accumulation of volume + small and medium-sized caps + monthly low + weekly line has just begun to trend upward + daily box upper edge breakthrough", look for individual stocks. There are a lot of main funds, before the completion of the low absorption of chips, often in a stock price box "repeated shocks", once full, will "break through the upper edge of the box", quickly pull up!
h, when the "hot plate" is in the "main emotional rise period", among the younger brothers and sisters of the leading boss, grab one into two, grab two into three, and grab three into four. Emotions are high, the market is recognized, the drum is beating, the main funds and retail investors "help each other", and there will often be a crazy attack on the "leading boss" in the "hot plate", and the younger brothers and sisters in the plate will also "learn from the appearance of the leading boss".
3. How to "follow the mainstream hot spots" of funds?
The "mainstream hot spot" is the "plate" or "concept" with the largest number of "up-limit boards" for many consecutive days. Once a "mainstream hot spot" is formed, it will not end in a week or two, nor will it end in a month or two months. The formation of "mainstream hot spots" or concepts is often "very large, very deep, and very broad in capital involvement".
4. How to "follow the funds" of the tributary hot spots?
In a certain period, when a "mainstream hot spot" plate or concept "continues to ferment", there will always be one or several "tributary hot spots". The life span of the "tributary hotspot" is short, and the "tributary hotspot" will be "abnormally active" during the short rest period of the "mainstream hotspot" (three or five days or a week, due to position adjustment and stock exchange or due to market shocks).
The method of chasing is the same, chasing the leading boss and the younger siblings of the leading boss in the "tributary hot spot" section.
5. How to "take profit and short positions in the period when emotions are just ebbing and how to stop losses in short positions in the period of emotional chaos"?
There is no market, sector, and individual stocks that only rise and fall, and it is very important to close when you see a good situation.
The best "reference standard" for taking profit out is "amount of energy". When the equivalent can be effectively cooperated, it is a "peak sign", that is, the time of "take profit out"!
6, 10 musts, must adhere to:
We must adhere to the principle of "short positions at the peak and waiting for them to fall, and full positions at the trough waiting to rise".
It is necessary to "first focus on individual stocks, and then on individual stocks", and do not play "heavy stocks, light on the large market".
It is necessary to "resolutely buy stocks at the low end of the monthly line", and preventing being trapped is the premise of buying stocks.
We must "don't listen to anyone's fools and individual stock recommendations".
It is necessary to "do not listen to any news to speculate in stocks".
It is necessary to "do not believe that stocks with good performance of listed companies are value investment".
It is necessary to "believe that capital (money) also likes to give preference to small-cap stocks that are easy to pull up".
It must be "understood that the rise in stock prices is brought about by the continuous purchase of funds, and has nothing to do with the performance of listed companies, has nothing to do with the deception of experts, professors and deans, has nothing to do with favorable information policies, and is only related to whether funds like or dislike continuous rush purchases."
We must "never buy the bottom of the market, the bottom of the plate, and the bottom of individual stocks, because we don't know when the funds will start to buy, buy, buy, buy."
We must "insist on following the funds, the funds buy and buy, and we follow the buy, buy, buy, and buy, just do it"
7. How to follow the funds to buy, buy, buy?
a, following the "sentiment of the hot plate", the radicals grabbed the price limit:
For example, in the recent hot plates, the high-standard faucet has more than 7 boards, and continues to seal the board, and the probability of its younger brothers and sisters is 99% that they will enter two and two into three, and three into four. 9:15--9:25 call auction period and within 10 minutes of opening, rush to grab
b, follow the "accumulation of funds", when breaking through the upper edge of the box, safe buying
c, follow the "indicator parameters set in the three major indexes".
The above "common sense of stock speculation", everyone "understands it and draws inferences from one another", which is enough!
For more "common sense of stock trading", you need to "pass the real example" and decompose it specifically (such as: how to buy and sell on the "time-sharing chart", etc.)!
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Comment on the trend of individual stocks!