Trading is a kind of operation management that strictly controls the loss ratio, closely follows the market trend, and uses continuous small losses to test and capture the big ones.
Any trading system is based on the capture of probability, which naturally determines that there is no system with a 100% win rate, so there is no perfect system suitable for all.
If the trading rules defined for the probability of small losses and large profits are valid, then the trading system summarized on this basis should also be effective, as long as it can be implemented, it will definitely be able to achieve a stable growth of the capital curve.
How to make this leading stock?
1. First of all, if you want to be a leading stock, the most basic condition is to find the most likely to become a leader, like a leading stock is generally the strongest theme in the current stage of the market, often accompanied by the stimulation of the news surface, and there are at least 5-6 ** within a theme There is a continuous price limit, and at the same time, if there is a continuous theme.
At this time, there may be other strong new themes, but the new ones cannot be stronger than the former, which is also how we determine the continuity of the theme.
2. At what stage of the start of this theme we need to know, whether it is at the beginning of the stage or whether it has been out for a while, whether the ** of Long Yi and Long Er is the time when the dragon turns back or the beginning, these aspects are actually what we need to know.
3. After we find out, we need to make a plan to buy and sell, and then confirm it according to the trend of the leading stocks.
There are usually three modes of market profit: overselling**, selling high and buying low, and chasing high.
1) For over-falling**, we need to define what degree is called"Overfalling"will inevitably **?And to what extent will it be again?
2) In the toss high and suck low strategy, we need to determine when it has been reached"Highs", and when"Lows"？In addition, is low suction done one-time or multiple times?
3) For a strong chase, we need to determine when we can and cannotIn the process of chasing high, to what extent can you still chase high?
Different people may have different benchmarks for overselling**, so we can use historical statistics to define the extent of overselling.
For example, when the **from the high** exceeds 60%, and the pattern, volume distribution, etc., also meet the appropriate conditions, we can define this situation as an inevitable overshoot.
Rise trilogy to make money
Generally speaking, the ascending trilogy consists of five poles, the first of which is a medium or long white candle, the next three are small**, and the last is a medium or long white candle. The Rising Trilogy combination appears after the *** of the stock price, which is a portrayal of the strong performance of the market.
The ascent trilogy combination is a more accurate signal, and the following two points need to be paid attention to when using the ascending trilogy to carry out the first operation.
The middle 3 small** candlesticks cannot break through the lowest point of the previous medium or long white candlestick, and the last 1 medium or long white candlestick must make a new high.
The last 1 medium or long white candlestick needs to be amplified by volume.
The stock in mid-June after the creation of a phased ** appeared to consolidate and with a slight downward trend, in the three consecutive negative lines after a few days after the beginning of the rise trilogy, indicating that the market turned strong. The stock has seen a gradual increase in the upward offensive after the rising trilogy, which has formed a good opportunity for operation.
The buying point when there is a low flat bottom
At the bottom of a trend or range. It consists of 3 or more candlesticks, which can be adjacent or spaced apart. These candlesticks have the same or nearly identical lows, which can be either lower shadows or solids.
Flat bottom pattern 1 is composed of separated candlesticks, and the physical part of the two **, that is, the opening price of the front ** and the **price of the rear ** are almost the same, and the rear ** has a verification effect on the front**, forming a buy point.
However, it should be noted that there are usually two flat bottoms** that are not as supportive as 3 or more**.
The flat-head bottom pattern 2 is at the bottom of ***, which is composed of two ** separated by each other, ** is supported in the same position, the support effect is obvious, and it is a valuable buying point.
Horizontal line movement
A horizontal line means that the overall trend of the stock price is a horizontal line. Generally, a sideways trend indicates that the dealer is distributing or collecting.
If a horizontal line is formed in the low price area, then it is likely that the dealer is quietly collecting chips. When the dealer collects chips, he definitely does not want to increase the cost, so when the stock price is going to be the best, he will suppress the stock price and prevent the stock price from rising, so that a horizontal line will be formed in the low price area.
Be sure to pay more attention, because generally after the horizontal line is broken, the increase will be very amazing;
The horizontal line is broken upwards is a very strong ** signal, the earlier *** the lower it is, the greater the profit margin. On the contrary, it is a very strong shipment signal, and the later the shipment, the more the stock price will be
Generally, the longer the flats last, the greater the rise and fall;On the contrary, the rise and fall is smaller;
After the horizontal line is broken, whether it is up or down, the magnitude of the change in volume represents the size of the driving force.
This kind of gap breakthrough is tempting to be long?
First of all, we must make a careful distinction between support and pressure, because if the support is relatively strong and the pressure is relatively weak, then after this kind of gap breakthrough, it has the potential to continue to be the first in the later stage, or the probability of continuing is relatively large.
If the pressure is relatively large, and the support below is weak, then this trend of getting out of the gap cannot be blindly chased, otherwise it is easy to enter the market that is the high point, enter the market on the same day, and hedge on the same day.
If the time of the flat above is relatively long, and the amount is still relatively large, here is a comparison with the flat ** below, if it is obvious that the amount of chips hedged above can be much larger than the amount of flat ** below, then it means that there are more hedged disks above.
In the process of sideways trading below, there is no obvious volume, and if the amount can be compared with the above position, it is obviously reduced, which means that such a position, in the ** process, the above hedge chips, there is no large number of stop losses out, but all in the high position.
This kind of trend in the process of the following **, is to come out of the gap ** trend, and can not be close to the position of the stock price to chase the rise;
In the case that there is a large number of hedge disks above without stop loss, it is difficult for the stock price to directly get out of the trend of breakthrough, even if it can break through, it will be the first breakthrough, and in most cases, in the case of a large number of hedge disks above, the probability of the later occurrence is much greater than the probability of continuing to **, we can not blindly chase.
In the above ** process is a large amount, but after the break, the amount released in the following ** process is similar to the amount released in the above ** process, and there is also an obvious volume, so when the stock price gaps directly on the lower sideways ** position, this ** has sustainability, and the success rate of chasing up will be high.
Ignorance, impetuousness, and egotism are probably three of the most dangerous weaknesses in investing. But what is more troublesome than these three items is the compound danger, such as ignorance + conceit will escalate to stupidity, ignorance + impetuousness will become a gambler, and the middle of all three is a typical "stupid gambler".
It can be seen that continuous learning Xi, guarding against arrogance and rashness, having self-knowledge and being honest with oneself are necessary prerequisites to avoid becoming a foolish gambler.
The root that drives people to do addition (efficiency optimization) and even multiplication (efficiency optimization of leverage) is actually a greedy and impetuous heart.
Of course, there are geniuses in the world, but it is not wise to bet on the small probability that you will be a genius. However, people would rather chase unclear dreams than bother to think about the most essential laws and the most simple methods of investment.
Survival comes first in **. Investing is like adding water to a bucket, if the bucket is in good condition, even if you only add a little bit at a time, it won't take long to fill it upIf there is a bowl-sized hole under the bucket that leaks while adding water, it is impossible to fill the tube no matter how quickly you fill it up;If your bucket leaks faster than it can be refilled, the water in the bucket will leak out sooner or later.
If you want to fill up the bucket, the first thing to do is not to make the tube bigger, but to fill the leaky barrel. This is the leaky barrel theory. To put it simply, the first is to learn to stop losses, and the second is to learn to control your desires. The advice of almost all connoisseurs is to try to keep your principal, and survival is the first priority.