The stock market is unpredictable, and no investor can guarantee that they will always be invincible in the stock market. There are many excellent investors in the market, and investment strategies and methods can be used as references, but it is important to understand that even the essence of other people's ideas will always be someone else's, and the most important thing is how to find the most suitable for yourself in the vast sea of theories and transform them into your own investment style, which requires a long time of practice and accumulation. Therefore, after investors enter the actual combat, they must pay attention to the accumulation and integration of knowledge, constantly adjust the investment strategy according to their own preferences, and will definitely form their own investment style over time.
Stock trading seems simple, but when you really do it, there will be countless mistakes waiting for you, which requires us to be good at reflection and summarize the experience of mistakes. If you don't care about it when you encounter a problem, and still do it your own way the next time, then the problem will never be solved, and the trading technology will not improve at all. So, what kind of people are the people who really make money by trading stocks? Do 6 things repeatedly, and use the simplest method to make the most money.
1: Speculate on stocks, only do strong stocks, and only look at stocks in an uptrend. Stocks in a downtrend don't look because we don't have time to spend with the main force. If the stock is always above the trend line, then hold it patiently. For example, artificial intelligence before the year, as long as it does not fall below the 30-day moving average, it will hold below the market.
2: Look at the main line trend method, when the market trend is good, there will be a main line direction, if the main line trend is weak, or there is no main line at all, then it means that the recent market risk is greater than the opportunity, you should be patient and wait for the emergence of the main line, do not operate blindly.
3. The road is simple, from the beginning to learn hundreds of technical knowledge, from the moving average, shape, Dow theory, followed by Gann waves. In the end, I found that they all have a characteristic, that is, they are formed by clinging to the K-line, just like clothes are worn on the body, clothes are things outside the body, I eliminated the excess, and there was only capital and price fluctuations, and then the transaction produced a qualitative leap.
4: Rest after a big loss, and rest even more after a big profit. From a psychological point of view, the mentality will be affected after a big loss, it is flesh and blood, it is difficult to be objective, at this time to gain insight into their retaliatory operation psychology, delusional on the same day to pull back or do back, is the gambler's psychology is not advisable. After making a big profit, the mood comes to a high point, and it is easy to lose a cautious and cautious mentality, so after a big profit, it is often a big loss to spit back.
5: Never fill the warehouse, or you will always have tears in your eyes. Personally, I have always been in awe of the market. I never think that anyone can grasp the market completely correctly, so a full warehouse is no less than a go, Bo is right, the bicycle becomes a motorcycle, Bo is wrong, there are no bicycle tires left. And a full position will also affect my own operation, which is not suitable for my value investment philosophy. At the same time, don't put your eggs in the same basket, the same goes for stock trading, don't take a full position on one stock, even if you are very optimistic, you must learn to divide the position, and don't have more than 4 stocks in your hands.
6. Insist on reviewing every day and look at all the stocks in the self-selected stocks. It is necessary to know whether the stock in your hand has risen or fallen today, and it is necessary to know what is the reason for the stock to rise today, whether it is good news for the company or good news for the sector?
Keep in mind the "foxhole" pattern and make the most money in the easiest way
The stock market is hard to find a ballade when the stock price fluctuates slightly upwards or is in the middle of the rise, the trading volume is accompanied by the continuous expansion of the turnover rate in the process of sudden rapid decline in the stock price, but the decline is maintained for a short time, usually within 10 trading days, and then the stock price rises again, and a ballade pattern will be formed on the graph.
If there is a big hole in a rising market, it is actually the behavior of the main force to shake the position strongly before the sharp rise, discard the pawn in exchange for the victory of the whole war, and use this ferocious operation method to clean up most of the floating chips in the plate. This mode of operation has very high requirements for the operation of the main force, and it also reflects the height control of the main force from the side, because only when the main force is highly controlled, can the overall situation be grasped and the trend can run according to its own operation, as shown in Figure 1-1.
The perfect match of volume and price also determines the rise of the market outlook, and it is not difficult to snipe at such stocks. Because of the high level of control of the main forces and their orderly operation, it is easy for us to discover their purpose, as long as we intervene when it is established that the foxhole has regained its upward momentum. Because at this time, not only is the bulls diverging upwards on the K-line, but also the golden cross will be enlarged on the energy line, as shown in Figure 1-2.
The shape of the foxhole is diverse, there are round-bottomed and pointed-bottomed, Figure 1-2 shows the round-bottomed foxhole. Here's an introduction to the foxholes at the bottom of the culet. In fact, whether it is a round bottom or a pointed bottom, the essence of the content expressed is the same, and it also has the same characteristics. First, the decline is sudden, destroying the original upward pattern, making people unguarded and causing panic; second, the stock price can quickly recover its lost ground after falling, and it is a false alarm from the trend point of view. Don't panic to throw chips because of a sudden fall, combined with the judgment of the time line, you will find that this sudden decline is an opportunity to increase positions; third, after the pit is completed, it will regain the upward trend, as shown in Figure 1-3.
In the process of real operation, ordinary investors must pay attention to the following problems for the form of foxholes.
First, it is better for the stock price to be relatively low, and the moving average bulls diverge upwards, which is a sign that the trend is established.
Second, the process of a sudden drop in stock prices is a process of decreasing quantity and energy, and if the decline process is disordered, it is necessary to pay attention to it.
Third, the stock price should not fall more than 30% of the increase, otherwise the upward attack will weaken.
Fourth, the process of falling back to the rebound should not be too long, it is best to complete it within 10~15 trading days, once the time drags on for too long, the upward attack will weaken.
Fifth, the choice of buying point must be safe when regaining the upward trend, while ensuring the safety of funds, the choice of buying point must also be safe.
But we also need to note: trading so far to find a tool with a more than 100% accuracy almost does not exist, and even if there is, it can only be done for a time or a certain period of time, but if we summarize all the trading signals, we will find that if the probability is calculated according to the number of times the signal is sent, the correct rate of the perfect instrument in our hands or the number of times it can be profitable is basically about 50%, or even 60%.
That is, the beautiful tools we have made through hard work still have not escaped the fate of conservation, and we are still swaying around with a 50% probability, but why do some people make a profit? The reason is that they can abide by the rules and do the right thing under this 50% probability, that is, they only respond to the changes in the market correctly at these possible points of change, rather than blindly testing with feelings in the ups and downs of the market.
So what a trader should do is to be good at waiting for these points to be generated, and to enter or exit the market under the signals of these points. The accumulation of market segments rather than the accumulation of the ratio of right and wrong without blindly entering and exiting. In other words, if the trader can follow the tool's prompts and adhere to the principle of entry and exit correctly, you can still make a profit even if you survive in a 50% probability.
Because even if your instrument is correct only five times out of ten, if you can stop the loss in time when you are wrong and hold it tightly at the right time, you will be able to accumulate five market segments, and the sum of these five market segments is enough to offset your previous losses due to stop loss.
But if you don't stick to the principle of entering and exiting trading instruments, you will inevitably enter and exit at the right time due to a lack of confidence and evidence. In a state of mutual cancellation, the end fails.
So we must know that tools are the compass of traders, rules are the soul of traders, and if a trader has no tools to rely on, he will be like a ship without a compass, trading in speculation and nervously entering and exiting, canceling out his own results in the results of half right and half wrong, and finally letting the commission eliminate itself.
Similarly, if a trader fails to enforce the rules, it will be like a man entering a dense forest and shooting aimlessly with a submachine gun. Eventually, he will be killed. So traders want to win in the stock market. You have to cherish the 50% probability of winning in your tool and be careful with the other 50% probability of losing.
That is: hold the profitable chips, cut off the wrong chips, and let the sum of the correct results be greater than the sum of the wrong results, so as to achieve the purpose of profit. For most people, it's easier said than done, and that's why it's hard to make money.
In the end, no matter how good a system is, it won't work without good execution. People tend to think they're smarter than the market and don't want to regret their decisions, and trading on instinct can often get out of hand. Traders should keep in mind that the system is smarter than themselves, and the system is the perfect one. If we want to resolutely enforce the system, we must start by subduing their hearts. When developing good trading habits, traders should pay attention to the following:
(1) Establish a system concept. Embrace systematic thinking and probabilistic thinking from the heart. Understanding the system is the best way to guarantee profitability.
(2) Accept losses. There are no 100% right people in the world, and even a master trader will have a large number of losing orders. The loss in the system is the cost of making a profit. There is no shame in small losses, but it is shame to lose control of the transaction.
(3) Probabilistic role. This is a point that we often make. Our entire system, from the buying point to the selling point, from adding to decreasing positions, is based on the results of historical statistics. The countermeasures of the trading system are optimal, as long as you follow it, profits will inevitably come.
(4) Reward correct execution. In order to develop good habits, we should reward correct execution. Traders can reward themselves with a portion of their profits for a month or a period of time, cementing their trading habits with positive incentives. For bad execution, traders can also impose some small punishments on themselves, such as using running as a physical punishment and correcting their habits with negative incentives.
For an operator, the operation when there is a position in the hand, and the prediction are completely different things, the purpose of judgment is to let the position get the maximum profit in the way of the least risk, and the judgment of the future must be integrated into the profit or loss that has occurred in your position, so it will be more complicated. When the position appears to be profitable, let the profit develop on its own, as long as you set a time to make a profit, decide under what circumstances to make a profit, then the transaction is considered successful, and does not need to be such as the short position at the lowest point to be right, more and less profit are earned; 。
From hearing the Tao, to enlightenment, to execution, this is the process of "suffering his mind and working his muscles and bones" that every successful trader has to go through. You can only experience the taste for yourself. With a systematic trading mindset, you're on the right track. The desired trading system, coupled with strict operational discipline, allows probability to play a role in most trades, which can ensure that you achieve long-term stable profits.