◆ The waves of stock price fluctuations are created by the major players; without them, there wouldn't be significant rises or falls. Without these major players, even the best themes, concepts, and reasons would still leave the market as stagnant as a dead pool. The first thought to have when entering the stock market is to understand that no wind means no waves — the waves are made by institutional investors. Without an institutional investor taking the lead, stability isn’t easily achieved. If you want to profit in the stock market, you must dance with the institutional investors and move in tandem with the major players. Is this clear?
◆ Give up a bit at the bottom, give up a bit at the peak, but buy more on the sides. That’s how operations go.
◆ When trading stocks: 1. Tools should be simple; 2. Ideas should be straightforward.
◆ There are two ways to buy: Buy low, and buy strong.
◆ When stocks reach their high points, if you don't know to sell, it will all end up being just wasted effort—merely paper wealth. Knowing how to buy makes you a disciple, but knowing how to sell makes you a master.
◆ Look for support when rising, look for resistance when falling. Don't get this big principle of trend operation wrong. Once your operational skills improve, they can significantly elevate.
◆ How do you lock in profits? When you feel satisfied, it's time to leave. A simple way is: when the reason for your purchase disappears, that's a good time to exit.
◆ Don't overestimate when it's rising, and don't underestimate when it's falling.
◆ Aim for opportunities where the success rate is greater than 70%. Sometimes acting once a month is enough. Hunters don't shoot at every flying bird; they aim carefully with limited ammunition and then hit the target.
◆ Bullish waves or bearish waves? Major players in sync with the general trend are good players. Bullish waves: each high surpasses the previous one, and lows don't break previous lows. Bearish waves: each low dips below the previous one, and highs don't exceed previous highs. After deep falls, there will be rebounds; after large rises, there will be pullbacks. This is the inertia of stock prices, and adjustments take both time and space.
◆ Leading waves come first, following waves arrive later. When looking at the market, look at the overall market first, then sectors, and finally individual stocks.
◆ Knowing how to wait is the secret to winning in the stock market. "Think of losing before winning" is a highly intelligent saying left by our ancestors. When you understand the situation, enter the market; when you don't, observe. Watching is also a strategy.
◆ It's not enough to only know buying points and selling points; mental training is what retail investors lack most. Retail investors lack the killer instinct; they hesitate to buy when they should, delay selling when necessary, and fail to hold when they should.
◆ Stocks don't need to be bought every day, but homework must be done daily. 1. Find the top 30 stocks with the highest increases each day and examine their K-line charts to see why they rose. What were the signs before the rise? Which sectors had the most gains? Electronics? Finance? Or pharmaceuticals? Which price range had the most gains? High-priced? Mid-priced? Or low-priced? Where is the capital concentrated? Electronics? Finance? Or plastics? From this information, you can find out which sector might become mainstream and which technical pattern could cause a significant stock price increase. Then, among possible mainstream groups, find the stock you like.
2. Identify five stocks that meet the conditions for a rising wave or five stocks for a falling wave each day and record them. Check your ability. Mark "○" if they indeed rise within three days; otherwise, mark "". You will review and enhance your stock selection abilities.
◆ Buy after seeing potential, rest after buying while waiting for a selling point, sell and rest again while waiting for a buying point.
◆ Go long during bull markets, short during bear markets, and trade lightly during consolidation.
◆ "The people who don't watch the market make the most money."
◆ The wavehead of the K-line is the starting point of a turn. If it meets the entry criteria, bravely enter. Within three days of entry, you can know whether the institutional investor intends to create a wave and whether there are any points the institutional investor cannot maintain. If they appear, run quickly; if not, continue holding. If it doesn't move at all, don't waste time waiting. Always have prepared stocks ready to replace.
◆ In fact, the moving average line is discussed the most, which is also the control line. An important basis for operations is also the control line. If you want to operate easily in the market, the moving average line is something you must carefully study and research.
◆ Simply apply the "Market Energy Philosophy" rules, wait for the price to break through the previous day's high under such favorable circumstances to place orders, because this is the most time-saving order placement method and the most likely way to buy at the launch point.
◆ Opening prices breaking through yesterday's high may indicate the direction of the day's or the next few days' trades, especially after bullish or bearish news reports.
◆ Remember, if your stock has already shown, or has long shown bearish waves, cut losses decisively and leave first. Preserve capital, and there will always be opportunities.
◆ Most of the big money earned in the stock market comes from technical analysis-based swing trading.
◆ Once the wavehead is caught, quickly detach from the cost area, followed by easy control of the lines.
◆ Money is the force pushing upwards; stocks are the force pressing downwards.
◆ Red K-lines are drawn with silver; black K-lines are struck down with stocks.
◆ Generally speaking, there are two opportune moments to participate: one is when selling pressure is exhausted — buying low, and the other is when buying power shows — chasing higher.
◆ The source of the wave is a red K-line. The high point of the red K-line should be higher than the previous day, and the low point lower than the previous day. This is the basic skill for catching the wavehead.
◆ Volume, price, indicators, patterns, sector strength, and intraday trends are all factors I consider when selecting stocks.
◆ As the stock saying goes: Don't chase after three consecutive rises. For a stock that has risen for four days, how much room and momentum is left? Have plans, but don't expect too much. This is the operating principle.
◆ To be bullish, show me recent highs. If the wave turns bullish, I will definitely ride it without opposing the institutional investors. You can predict a bullish turn, but I need to see it "truly" turn bullish. Missing the first wave won't kill anyone because where there's a first wave, there will be many more, and the waves will get stronger and fiercer, allowing you to truly enjoy the thrill of riding the waves.
◆ Each moving average line represents a horse. If more horses are running upwards, the horsepower naturally becomes stronger, faster, and more stable.
◆ The market speaks, using various ways to tell you what it intends to do. These languages include K-lines, patterns, moving averages, and indicators.
◆ The three treasures of stock market operations: mindset, technique, and capital management.
◆ During the start of a fall, don't buy strong stocks; at the end of a fall, don't sell weak stocks. During the start of a rise, rush to buy strong stocks; at the end of a rise, rush to sell weak stocks.
◆ Engulfing (opening high and closing low, swallowing the previous bullish candlestick) at higher levels forms an engulfing top, a sell signal. However, if it occurs at lower levels, it forms an engulfing bottom, signaling a buying opportunity. An engulfing bottom in a downtrend (especially with a broken bottom) is a type of washout K-line. This final engulfing bottom represents the exhaustion of selling pressure, and a small upward force can trigger a significant rebound. This is categorized as a bearish deception line in K-line warfare and is a buy signal!
◆ K-lines reveal reversal signals at critical moments continuously.
◆ A declining volume at a broken bottom often indicates nearing the bottom, while a large volume suggests an unfathomable bottom.
◆ The force of moving averages is greater than that of K-lines. K-lines are suitable for identifying turning points, while moving averages point out trends. Combining both provides clearer insights. Achieving harmony between turning points and trends, avoiding divergence in turning points, and spotting turning points within trends is an artful skill and our goal.
◆ With peace of mind, established methods, and adherence to them, natural operation becomes effortless. Establishing methods simply means synthesizing various learned methods into a simple formula that suits your operational cycle. This includes: how to enter, how to hold steady, stop-loss points, and profit-taking points. Peace of mind, simply put, means focusing solely on whether your stock has a trading point, then executing accordingly without distractions. The key skill for traders is adaptability during trading, not predicting the market.
◆ Utilize time and invest some effort in learning an operational method, which will be a lifelong useful skill. Once you have an operational mode that suits you, you'll discover you own a well that produces water automatically, making life more enjoyable.
◆ Until a long red K-line appears, don't look back; until a long black K-line appears, don't stop falling.