Today, the market first opened significantly higher in the early session. After opening higher, it quickly returned to seal the gap, and for the whole day, it basically fluctuated narrowly around the 20-day line. The trading volume was slightly larger than on Friday, but due to the weak trading volume in the afternoon, the market's upward attack failed. Today's weakness is mainly due to the weakness of blue-chip stocks, including real estate, steel, energy, and non-ferrous metals sectors, which all showed weakness. Even relatively stronger financial stocks also experienced a retreat after rising. In contrast to blue-chip stocks, individual stocks performed more actively, with agricultural stocks and consumer-related stocks performing well, but not enough to allow the market to break through. In the short term, whether the market can technically strengthen depends on whether it can break through and stabilize above the 20-day line with increased volume. As long as it breaks through and stabilizes above the 20-day line with increased volume, it will inevitably move closer to the 60-day line above. Below, the key lies in the support of the six-month line. If the six-month line cannot provide support, then in the short term, it will test the support strength of last Friday's gap. Therefore, the short-term trend depends on these two critical points. In the medium to long term, various factors including fundamentals, capital flow, and policy are all leaning towards the bulls. What is missing now is technical confirmation. Technically speaking, as long as the 5-day line and the 10-day line form a golden cross and break through the 20-day line while forming a bullish alignment with the 30-day line, it can be basically confirmed that the mid-term adjustment of the market is about to end. Once these four lines break through the 60-day line, it can be confirmed that the mid-term adjustment has completely ended and entered the main uptrend. Therefore, what investors need to do recently is to pay attention to the direction of medium to long-term technical indicators, and at the same time, when the market falls low and does not go down further, they should pay attention to buying low, especially those stocks with huge medium to long-term potential. In terms of operations, for stocks with large short-term rebounds, attention should be paid to selling high, and after the rebound, attention should be paid to buying low. Medium to long-term layout is the main work in October, and positions should be gradually increased in batches through selling high and buying low. After the technical confirmation of the trend, the heavy or full position should be basically completed. Meanwhile, the way for investors to avoid risks is to buy low. The opportunity to buy low occurs when the market falls low and does not go down further, i.e., when the decline rapidly contracts in volume or fails to fall further despite increased volume and instead rises.
Note: The publisher informed the editor over the weekend that "The Gold Game III" has already been released and is currently in logistics. Due to an oral agreement with the publisher, the title of the book would not be disclosed to anyone before its official release. Thus, no matter how close a friend asked, no word was revealed, and there was no mention in the blog. Today, after the book has come out, the author can finally share the title with the readers. "The Gold Game - Trading Depends on Yourself" is the title of the third book. The subtitle of the book "Trading Depends on Yourself" actually comes from the emails and feedback of the readers. Too many investors think someone can help them make money in the stock market, believing that relying on a famous expert can earn them profits. This erroneous dependent concept leads to a large amount of losses. After consideration and discussion with the editor, the subtitle was finally set as "Trading Depends on Yourself." The philosophical discussions involved in the book focus on self-awareness, hoping that these seemingly unrelated contents to stocks can give some ideas to the readers. In today's exchange, instead of posting email exchanges, the preface of "The Gold Game - Trading Depends on Yourself" is posted below for the readers to preview.
"The Gold Game" Exchange Platform (Exchange Email: [email protected], Platform Exchange Purpose: Equality, No Threshold, Everyone Together Technical Exchange Platform. Here there are no teachers, only friends and "Warriors". Three types of questions will not be answered: 1. Direct consultation on individual stocks; 2. Overly sensitive issues; 3. Private issues): Preface to "The Gold Game (III) - Trading Depends on Yourself"
The series "The Gold Game" has already launched two books, "Profiting from A-shares" and "Making Money in Bear Markets", which have received widespread recognition and welcome from readers, something unexpected yet reasonable. Unexpected because compared to other business books, "The Gold Game" has remained consistently in the top three bestsellers in financial management books since its publication without much publicity; Reasonable because every chapter, section, paragraph, and word in this set of books are the result of the author's careful thought and hard work, reviewed and polished by the editor, and finally revised and adjusted by the author. As many publishing professionals say: "It's rare to find someone as serious about writing as Zhan Hao," and I believe this statement is deserved.
After more than ten years of playing the stock market game and reading countless related stock books, ranging from technical aspects, psychological aspects, insider information, to policy aspects... Among these numerous books, the technically proficient ones are mostly based on the U.S. stock market, and many of their contents are unsuitable for the A-share market; Policy discussions by experts who lack technical knowledge cannot clearly analyze how policy directions will affect the market; Psychological books usually focus more on psychological analysis, far from the practical realities of stock trading; Those revealing insider information resemble martial arts novels... Such books can easily mislead investors, causing them to take many detours and pay a high price to return to the right track. Of course, this refers to those investors who constantly learn from mistakes and accumulate experience; more investors are often swallowed up by the market before understanding how it works.
Through extensive reading and long-term practical trading, I gradually formed a system of analysis based on technical, fundamental, policy, capital, and psychological aspects, and on this analytical system, established my own practical trading model. Turning years of accumulation into words and writing a set of theories suitable for China's capital market with practical significance for investors is something I've always hoped to do. To let a series of trading analysis books with Chinese characteristics for the capital market stay long-term on the shelves of Chinese investors' financial books is a dream I've had for a long time. In ancient times, there were three immortalities: establishing virtue, achieving merit, and leaving behind words. Establishing virtue is the foundation of being human, something everyone should strive to achieve; Achieving merit is not something everyone dares to hope for, even if they have aspirations, not everyone has such opportunities; Leaving behind words, however, can be independently accomplished through one's own efforts. "The Gold Game" will continue, and the value of the "The Gold Game" series needs to be verified over time. Regardless, in my heart, this is a sacred process. For me, whether it's "The Gold Game" or the "Zhan Hao Blog," their actual significance lies in their role as platforms for me to express myself. They record the trajectory and insights of my investment process, and I hope to share them with people who have a connection through this platform.
"The Gold Game - Trading Depends on Yourself" still adheres to the guidelines of accessibility, value, systematicness, reality, and practicality. The reason I chose "Trading Depends on Yourself" as the subtitle of this book is to tell readers: "Trading is personal, of course it must rely on one's own wisdom. The gains and losses of trading are unrelated to others, but directly related to one's own pocket." Therefore, for a speculator to succeed, the premise is independent thinking, independent responsibility for account gains and losses. Since choosing this game of speculation, one must bear the wins and losses. Winning, knowing why you win; losing, clearly understanding why you lose. Being able to withstand wins and losses, seeing gains and losses as normal, and discovering values beyond money itself, this is the true "Gold Game."
"The Gold Game - Trading Depends on Yourself" adds philosophical reflections on the basis of the previous two books, which may not be found in other stock books, and is also the result of my repeated organization of my thoughts. The reason for adding philosophical reflections is that all things, including the stock market, contain the same philosophy. As a speculator, standing high allows one to see far, only reaching a certain level of thought can lead to better achievements. At the same time, "The Gold Game - Trading Depends on Yourself" also increases logical reasoning content, which should be an innovation in stock books, and is also the experience I have summarized over the years. The reason for incorporating logical reasoning is that stock market judgments are based on comprehensive judgments from multiple aspects, only by analyzing and judging more important elements together can the results be closer to the future real trends. "The Gold Game - Trading Depends on Yourself" also adds some operation modules similar to "project processes," which are difficult to see in other stock books, inspired by project operation modes. These modules similar to "project processes" are more conducive to readers clearing their heads and referencing operations. In the already published "The Gold Game," the first book "The Gold Game - Profiting from A-shares" focuses on establishing a broad investment framework, mainly including mindset, concepts, and the logical relationship of technology, the fundamental principles of stock technology, and some practical technologies. The second book "The Gold Game - Making Money in Bear Markets" focuses more on the application of practical technologies, especially trend technologies and bear market practical technologies. And the third book "The Gold Game - Trading Depends on Yourself" extends the operating system based on philosophical reflection, logical reasoning, and process operation judgment, while paying more attention to grasping buying opportunities. These three books have strong coherence, and each book's practical technology is a continuation of the "Gold Game Operating System."
Finally, special thanks to Mr. Huang Lei, Vice President of Shanghai University of Finance and Economics Press, and Ms. Wen Yong, responsible for the editing of this book, for their seriousness and support. Finally, heartfelt gratitude to the editor for everything done for "The Gold Game." It can be said that without the editor's understanding and dedication, "The Gold Game" would not have been so wonderful to reach this point.
Zhan Hao
September 2009
"The Gold Game (II) - Making Money in Bear Markets," "The Gold Game (I) - Profiting from A-shares"
Dangdang purchase link address: http://search.book.dangdang.com/search.aspx?category=01&key2=%u5360%u8C6A Related thematic articles: Southern People Weekly: "Cao's" Sina Weibo Movie Edition Killing Game