The market is not a casino, and investing is not gambling!
The difference between a market and a casino is that the market has a master called Mr. Market, who is capricious, and he and his opponents are sometimes greedy and sometimes fearful. And the bookmakers and opponents of the casino have only greed.
All that enters the casino sees in the eyes of the eye and can only make money from the operation is the opponent's money; In the market, speculators make money from their opponents, and investors earn money from their opponents or the growth of the company's value; So, making an investment is not gambling.
There are only three scenarios in the market, left, right, and sideways.
I'm an advocate of investing, so I'm talking about how to do the right side and make money from the return and growth of the company's value.
1. What is the right side?
This chart represents the right side, and the so-called right side is the situation that has returned to the long-term after a long-term downward trend and a sideways consolidation.
2. What are the characteristics of the right side?
The characteristic on the right side is that with the return of **value, **in the continuous**, the low point formed in the process is getting higher and higher (the low point of the bottom parting structure is constantly moving upward), and the main ** indicators such as the annual line are constantly moving up with **.
3. What is the current **?
Now the market belongs to the process of moving from the left low to the sideways. Specifically, it can be seen from the chart that although the market has hit a new low of 2635, it is not much different from the situation of the previous two new lows.
The three times the index fell below the annual line, hit a new low on the daily line, and then began a more violent ** to the top of the annual line, and then began to fall, sideways in a certain range, until it returned to the top of the annual line, out of the right side of the pattern, and opened a new round of **.
4. How to do the right side?
The most important thing to do on the right side is to identify whether it is the right side, if you can't confirm that it is the right side, then it is likely to be trapped in a high position.
If you can't confirm that it's the right side for the time being, or if you don't have enough eyesight to see it's the right side, an easy way is to stare at the year line. After a sideways ** consolidation, the re-run above the annual line has generally entered the right side. Of course, it is not excluded that it may fall below the annual line again, and at this time it is necessary to determine whether to open a position in combination with fundamentals.
For example, this **, after sideways consolidation, returned to the top of the annual line, after **, even fell below the annual line, and then a wave of ** returned to the top of the annual line and began to hit a new high. If the fundamentals are very good, and it is an industry supported by the state, and the dividend yield is good, it is still okay. Of course, if the research is not enough, it is not recommended, after all, there are many right sides that can be seen at a glance on the market, and there is no need to dwell on this.
Some are very simple, as shown in the figure, after breaking through the annual line, there is a wave of violent pull-up, using a positive pyramid to build a bottom position, set a stop-loss price and the protection of the trading position**, do this wave of pull-up.
5. How to prevent dish washing?
The biggest problem on the right side is that when you can't judge the washing or the main shipment, it is likely that a wave will be washed out by the main force.
There is a criterion for judging dish washing: the washed place will not be washed again!
This sentence is literal, and the advice that you don't understand is to strengthen the connection with the Chinese teacher.
6. How to sell on the right side?
At any time the stock price will not rise to the sky, because a trading model or a ** is making money all the time, and other traders will rush in and finally become unprofitable. The purpose of the main capital is also to make money rather than do charity, and the main force will be shipped to a certain extent.
So, sell resolutely before an unprofitable situation arises.
There are two key points to sell, the trading position should be sold after the stock price hits a new high, but the structure appears after the 2B structure.
The bottom position can be sold along with the trading position, or it can be sold at the annual position. This saves a lot of profits.
As for what to do if you sell flying, in a word, chasing high ** will lose the principal, and you won't buy it. In the market, investing is all about living as long as you can.