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.
Making money by trading stocks is actually very simple, just memorize the "five numbers": 10, 20, 50, 60, 721
1. 10 - no more than 10 stocks
It is best for risk-tolerant investors to buy no more than 10 stocks. Because according to expert statistics, a portfolio of more than 10 stocks has a small final return, and investors are simply too busy. There are many new stockholders who like to "rain and dew" when they start to enter the market, believing that the more stocks they hold, the higher their income. In the name of it: risk differentiation and rational allocation of assets. We all know that eggs can't be put in one basket at the same time. In fact, the same applies to the stock market. In addition, the industry sectors in which the shares are held should also be differentiated.
2. 20% - the best take-profit point (bag drop is safe)
The purpose of stock trading is to make real gains in the stock market. At the beginning of holding each stock, you should first set a take profit point to settle in your pocket, rather than a floating profit in your account. There is money to be made in the stock market, but there is money to be lost. Therefore, it is recommended that investors set a take-profit point when buying stocks. According to statistics, at present, 70.8% of shareholders are a "greedy" word in trouble, from profit to loss, from small loss to big loss.
3. 50% - the golden ratio of holdings
The most important thing is to control the proportion of your positions, so that you will not have to worry about being trapped. At the same time, even when attacking, you have enough "bullets", and if you are covered, you have enough "bullets" to cover the position. That is, 50% of the position needs to be reserved, and 50% of the funds need to be set aside for short positions. Although total assets and market capitalization continue to change as the stock price rises and falls, it is important to remember the golden ratio of 50% when you first enter the market.
Fourth, 60% - low price judgment
Retail investors are often prone to dipping when it falls, but they don't know that "there is a basement under the floor". The 60% principle, when individual stocks are adjusted, the decline from the highest price of more than 60% is the low price, and it is advisable to buy the bottom. Hold on patiently and wait for the stock price to rise in a new round. Therefore, shareholders can refer to this "60% ratio" to avoid blindly chasing the rise and falling into the predicament of being trapped. It can also improve the utilization rate of account funds.
V. 7-2-1 – "The Spell"
721 is what shareholders often talk about "seven losses, two draws and one win", and if shareholders want to become profitable, the most important thing is to learn and establish a correct investment concept. It is not only necessary to analyze the fundamentals of listed companies, but also to have macroeconomics, psychology, stock market technology, comprehensive quality, etc.
Of course, this is not a panacea, the above stock market investment rules still have to be different from person to person, and the investment ratio should be adjusted in a timely manner. In addition, in ordinary life, investors should pay more attention to the study of relevant professional investment and financial knowledge, strive to improve their investment and financial management skills, and use various investment and financial channels and tools to maintain and increase their wealth.
After many years of profit, you only buy two kinds of stocks, so that you can make a lot of money
The first case: a gap up and a tie for the yin-yang line to buy
Pattern description: First the stock price is in an uptrend, and then there is a white candle with an upward gap, the white candle is followed by a black candle, the opening price of the black candle is located in the body of the white candle, and the closing price of this black candle is below the body of the white candle, and the closing price of this black candle constitutes the buying point. Normally, the body of both candles is not too long, as shown in Figure 1-1.
Buying point analysis: In an uptrend, the upward gap is a sign of market strength, and sometimes there will be a retry action. When a stock price gap occurs after an upward gap, the black candle that appears after the white candle with an upward gap can be understood as a consolidation of the white candle with a gap or a retest of the gap. After an upward gap occurs, the gap will create support for the stock price. In fact, the black candle after the white candle becomes the gap back buy point.
If, after the black candle, the stock price continues to fall after covering the gap, then this upward gap, the parallel yin and yang candlesticks, fails, which is also the buying and selling of the gap mentioned earlier. In actual trading, it is extremely rare to have a perfect upward gap and a candlestick that is tied to the candlestick, and it is often the case that the lower shadow fills the gap and inserts the body of the previous candle, but as long as the body is above the body of the candle before the gap, it can also be regarded as a gap and a candlestick tied with the candle body. The gap parallel yin and yang line is actually the application of buying and selling with an upward gap. Aggressive investors can buy at the buy point of the gap and break the gap, while conservative investors should buy after the upward bounce to improve accuracy.
The requirements of this pattern are higher, first of all, it must be a gap, on this basis, the white candlestick should not be too short, otherwise there is a suspicion of a star line; the upper and lower shadows should not be too long, otherwise there will be a suspicion of a shooting star line and a hanging neck; the opening price of the next day black candle cannot be higher than the closing price of the white candle, otherwise there is a suspicion of a dark cloud cover or a bearish engulfing pattern; the closing price cannot be inserted into the body of the white line before the gap and the yin and yang line, otherwise there is a suspicion of reversal. In short, the conditions are more harsh, so it is unavoidable, and the following is only one example as a real verification.
Verification: As shown in Figure 1-2, the stock price opens with an upward gap, followed by a black candle whose opening price is within the body of the previous white candle and closes below the opening price of the white candle body, these two candles constitute an upward gap and a parallel yin-yang line. The lower shadow of these two candles fills the gap up, and as we said, the parallel candlestick with the gap is actually testing the support of the gap up, where the black candle is supported by the lower edge of the gap, and its closing price constitutes the buying point. The day after the upward gap tied for the yin-yang line, a bullish belt line pushed the stock price upwards.
The second case: the cross star buys
Pattern Description: As shown in Figure 2-1, the Doji Morning Star appears at the bottom of the market and is a bottom reversal pattern. A black candle is followed by a crosshair that gaps with a black body, followed by a white candle with the body of the white candle inserted into the black candle body.
Buying point analysis: Figure 2-2 shows the reversal process of the cross star. The first black candle looks like the market is lifeless under the shroud of selling, and the buying is still nowhere to be seen, but the appearance of the doji makes the market conjecture: the selling is exhausted or the buying is involved! The doji gives the market a warning that the stock price is going to bottom? If the doji is followed by a white candle and inserts into the body of the white candle in front of the doji, it verifies the warning of the doji, and these three candlesticks constitute the doji morning star pattern, and the bottom buy point is established.
The Morning Star of the Cross is determined on the following grounds:
(1) There was a downward trend before.
(2) It consists of three candles, the first is a long black candle, the second is a doji, and the third is a white candle.
(3) In principle, there is a gap between the high point of the doji and the body of the black candle, and the body of the third white candle needs to enter the body of the first black candle (if there is a gap with the doji, the reversal is more significant).
Verification: As shown in Figure 2-3, the scale of the cross star in the figure is relatively small, although the sparrow is small, especially at the lower price level, it is still of great significance, reflecting the small trading volume, after the cross star, the rise in the stock price has been further verified, and the mid-yang candle continues to move forward and inserts the body of the long yin in front. There is a failed morning star with a short white body, followed by a black candlestick engulfing the small white and doji, announcing the failure of the morning star pattern.
As shown in Figure 2-4, the stock price has experienced a long and large-scale decline from a high of $15.08 to a low of $6.88 of the Doji. There has been a doji for two consecutive days, the lower shadow is longer, indicating that the selling power has been exhausted, the candlestick shows the natural law of one and the other, the white line after the doji represents the new force of buying began to rise, and the yang line is inserted into the previous yin body, constituting a buying point. In this way, the two doji stars and the yin and yang lines before and after constitute a double cross morning star (cross morning star 1), and the later cross morning star 2, morning star 3 and morning star 4 are all formed at the bottom of the pullback, launching a new round of rise.
Summary: Judging the buying point based on the following scenarios will improve the accuracy.
(1) The larger and longer the previous downtrend, the greater the likelihood of a reversal.
(2) There is a gap between the star line and the lowest price of the previous candle.
(3) The next day is a long white candle with a gap, and the larger the gap, the more advantageous.
(4) The next day, the white candle goes deep into the body of the black candle before the inverted hammer.
(5) The next day's white candle is paired with a volume that exceeds that of the previous black candle.
Finally, achievements come from foundation, from accumulation, and from opportunities. It's more up to you to grasp it. And how to grasp it is a word of understanding. What is enlightenment? It is the Tao, it is the law, and it is the true face of things. It is the cause and effect that are deeply hidden under the surface. There is a way to get it, but it is not possible. How can we raise our consciousness? That can only be done by ourselves, by thinking, by experience. But it's not easy to realize these things.
In fact, people who look beyond the surface to see through the essence of things are constantly experiencing the process of awareness and enlightenment. The world is as big as the heart. In the investment market, it is a kind of character that is cultivated. What is gained is the heart that can be obtained.
The stock market is to magnify human nature tenfold to others, to the market, and to yourself. The gains and losses of money in trading may seem important, but in fact, the stock market is not the real holy grail for traders. For the tempering of traders' humanity, shaping a peaceful state of mind, and feeling the true taste of life, is the greatest wealth that the market brings to traders, and these wealths, ordinary people will only have a sense of when they are getting old. There is no golden house in this country, and there are only the words "willing". ！
Trading is like a sword, want to become a first-class trader, when all the energy is focused on the profit goal, stimulated and tempted by the market, emotions often rise and fall with the market, the mentality will gradually lose peace of mind, the result is the opposite. If you turn off the computer monitor, you will find that your mind is blank, is the price number moving, is the screen flickering, everything is just your heart moving. Try to stay away from the market, go a little further, pull out your dusty notebook, write down your trading plan, plan your trade, trade your plan, the stock market is actually that simple.
Don't fall into the trap of chasing win percentage. Every trader has the pursuit of continuous optimization of the trading system, a basic trading system, should indeed have price judgment, capital management, risk control and other elements, but on this basis, many traders are always tirelessly optimizing the price judgment of this element, trying to seek a higher winning rate and better entry and exit points, this is a misguide. Newton said, "I can calculate the movement of the celestial bodies, but I cannot infer the madness of the human mind ". What we need to optimize is not a more accurate judgment of price, but the weakness of human nature itself. Losing money in the volatile market is a fate that even masters cannot escape, it is objective and real, we must understand that it is as natural as breathing, and we must accept it rationally rather than resist. Stop loss when you reach the stop loss level, take profit when you reach the take profit level, and let it go for fluctuations between the two positions.
Plan your trades, trade your plans. Don't be overjoyed when you win, and don't be discouraged when you lose. This is the formation of a habit, and habit determines character, and character determines fate. Look at the period when your bankroll curve has dropped sharply, which time is not the result of not following your trading plan? Only by following discipline can you achieve peace of mind and thus lasting happiness.