The stock market has been very volatile for more than a month. To the point where the vast majority of people panicked.
Whether it is the unfairness of the rules, or other reasons for the market itself, its existence has to be adapted.
Stocks are trading above and below expectations.
If the market isn't moving as well as you expected, there's definitely a reason for it.
If the market continues to fall short of your expectations, then risk control is very important at this time.
We don't do trading to be gamblers, and if so, it makes no difference to go to Macau.
How not to be a gambler is to build a system that suits you.
That is, the three systems of buying and selling, and risk control.
It is divided into position management that exceeds expectations, exceeds expectations and generally expects. There are also risk control management that is less than expected and seriously less than expected.
If these are slowly perfected, it will be difficult to have a liquidation or even a large drawdown.
You can reminisce about the past, isn't that the case?
In the early and middle of January, especially after January 8, it has been emphasized that there should be no bottom-buying and not full positions.
At that time, out of such a suggestion, the main reason was that the market did not stand on the 20-year line at 2920 points. The small- and mid-cap indices did not form a bottom and kept falling.
Before these two conditions are formed, the bottom is difficult to predict, and the resumption of the rally will take longer, so the position of individual stocks that fall with the index is a huge risk.
It is also a trading system. It is what kind of environment should be used to deal with most individual stocks. Some people don't know about liquidation, but they don't implement this trading system. With a subjective state of mind, it is almost the end.
What I mentioned above is actually a kind of general direction, it is the helmsman, the general direction is right, and there will be no serious mistakes in small details. That is, the selection of warehouse control and individual stocks, as well as the treatment of expectations and expectations after selection, and so on.
Let's go back to the present:
At present, the short-term funds in the market are scared, why? It is mainly caused by heavy positions playing against the trend. If it is a very small position, then it is not affected in any way in terms of mentality.
Returning to the fundamentals, there are many methods of short-term operation at present, but from the perspective of ultra-short, it is divided into two aspects:
One is the flow of funds. The second is the flow of emotions.
In this market, the most widespread at the moment is the flow of emotions. Many people play with the rumours, especially the new generation, but this part is actually very difficult.
In many cases, if the node is wrong, then the inflection point of the emotional cycle is wrong, and then it will fall into a situation of how to do what to do in a short period of time.
Different nodes and environments are different ways to play.
The game of capital flow is the game of strong strength funds, not the combined force of a single few funds. This kind of move is not a continuous board, but a strong trend move.
Back to examples:
Recently, the gameplay of emotional flow is mainly Deep China A, which is mainly an emotional gameplay that begins to break the game on the 5th board. Later, after the formation of uniqueness, a joint force behavior of all kinds of funds, when the joint force reaches the extreme, this stock will become a demon stock.
When long sentiment starts to run out, it starts to peak. When this resultant force ends, it needs to be observed synchronously through the change of time and the change of K-line every day.
When the market sentiment is at the extreme, it is generally difficult to appear demon stocks, because the long funds are also holding a mentality to run at any time, and the idea of the natural pattern will be reduced, so that the strength of the joint force will be reduced. So when doing other stocks at this time, it is generally done in a very light way, which is relative to the vast majority of people. Except for a very small number of people.
This has been the case recently, for example. Because even the weakening after the board is an A kill. At this time, the combined force of the market will become weaker and weaker.
At the same time, it will pass from the high to the low, and even the most classic low long sentiment pattern is relatively weak. So in such a state, after entering, you must first exit, and then wait until you are strong before following. And you can't die in it. This is the practice of not performing as expected, rather than blaming the market.
The sentiment here is stronger again, and the next step is to start with a strong reversal of the worst fall, and then slowly form a situation of the weakest strength and the linkage strengthening. In this way, a new bullish sentiment is formed. For example, whether the Hasen shares here are out of the expectations, or whether the next low-level reversal stock is out of the expectations. Observe the appearance of this signal.
At the same time, observe the resonance separation of the index at the time of the confirmation of the bottom of the index in the next step, and the emergence of super-strong stocks that are upward.
Then combine the present: before the above two signals do not appear, do not gamble casually. Follow when it appears.
As a capital flow, this is a practice of inverting sectors and inverse inbounds. At the same time, it is also a practice that when the market is good, it is easy to form big bull stocks.
For example, Pudong Jinqiao in recent days, it belongs to the play of capital flow, after the broken board on January 30, it stands to reason that according to the way of Shanghai local stocks, it should continue to kill, but this stock began to stop falling after January 31 and continued to rise, especially in the case of a very weak market on Thursday and Friday, it is an impact on the price limit, and in the case of a market crash on Friday afternoon, the stock has not changed in the slightest on the price limit, which is a manifestation of strong strength funds, and it is also a classic performance of capital flow play. In the following performance, you can observe whether it continues to exceed expectations, and then what to do if it exceeds expectations, and what to do if it is not as expected.
The following chart is also a way to play the capital flow, and the specific individual stocks should be clear.
Therefore, when playing with capital flow stocks, you should pay more attention to the contrarian trend of the time, the strength of the sealing board, and whether it seriously exceeds expectations (that is, it should be to fall to the limit, but to go against the trend).
It shares a simple way to play emotions and money flow, which is intended to be how to cross from one point to another. Because good stocks are anti-human at critical times. It's eternal.
To do business, we must have an artistic spirit, but also have the original intention and ingenuity.
After the beginning of spring, spring blossoms.
If the super-reversal comes, we will follow, come on!
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