The fixed rules of stock trading in the stock market for more than ten years summarized by stock trading experts
First: Understand yourself
Personal habits, hobbies, and life experiences will be reflected in his In terms of trading mentality and trading style, it is very important to understand yourself, so we put it first. The following description will return to this point. Like technical analysis, a person's personality can also be summarized through his history. Different personalities and experiences will have different trading strategies suitable for him. Only a trading system that suits him can help him succeed
Second: Choose the market
Many people do not have this concept. But today I want to tell you that choosing the market is a more important factor than choosing the timing. An active market can help you succeed as soon as possible, but operating in a depressed market will make heroes short of breath. For example, the metal futures market has been booming since last year. Even those who don't know much about fundamental or technical analysis may make huge profits by investing at this time. I heard that someone made a thousand times profit last year, and that's not a lie. Market activity is the basis for profit. Why do investors feel pitiful? Just because investors have entered a money-making market, there are few generals who will win, let alone masters. It is the market that causes your success or failure.
For many people, it is impossible for them to choose the market. Their capital and time limit their investment in other market areas, so they can only struggle in the sea of ??stocks, but they do not know that although they cannot turn In other markets, you can just wait and see, which dooms most people to failure. If you have no way to choose the market, then please read on.
Third: Choose the time to distinguish between bulls and bears
No matter how good the market is, you must choose the right time to intervene. Misreading the time is a crime against money. Being trapped as soon as you buy affects your mentality and is directly related to future success or failure. The first thing is to distinguish between a bull market and a bear market. The bull market has the characteristics of the bull market, and the bear market has the characteristics of the bear market. These characteristics are primitive and long-lasting, just like the "Tao" the Chinese call it. It is a principle and unchanging. What changes is only the form. Once you grasp it, The spirit can be easily distinguished.
Bull market and bear market are two outlines. Operation in the bull market and rest in the bear market should not be thought of as just a slogan, but a principle that must be resolutely implemented. If you disobey it, one day the building you have worked hard to build for several years will be razed to the ground. It continues to be subdivided into 6 states: a bear market within a bull market, a bull market within a bull market, a bull market within a bear market, a bear market within a bear market, a bull market within a balanced market, and a bear market within a balanced market. The proportion of funds invested are 30-50%, 80-100%, 20-30%, 0-10%, 20-30%, and 10-20% respectively.
The result of such segmentation is for fund management. Most people disdain money management, but it is very important. Many successful people succeed because they follow the right pace of the times, that is, they follow the right trend. Some people even consciously follow the trend.
These are the summaries of successful people. The main profits from trading are all obtained in the middle of the bull market, and more time is wasted in the bear market and the balanced market. I make a little here and lose a little there. I always feel that my technology is good but I make less money. In fact, I ignore the timing. So after understanding this, apply fund management to the boring bull and bear divisions. Use discipline to discipline yourself and avoid falling into traps. There are many high-level friends who did not escape this four-year bear market. They did not fall in the stormy year of 2001, nor did they die in the drizzly wind and drizzle in 2002, but they died in the slogans of 2003 and 2004. I am deeply moved. . The market is cruel, and new people will always be welcomed after you leave, and no one will remember your past glory. Losers are always associated with contempt and sympathy. So everyone is competing to see who lives longer and who lives a higher quality life.
Shrinking shock - small-cap stocks
When the market is stable but lacks energy, it is the active period for small-cap stocks. Because the energy of the market cannot satisfy large-scale hot spots, individual stock prices "Stars ignite", among which small-cap stocks are even more beautiful with small energy. Since small energy cannot satisfy the sustainability of the market, small-cap stocks tend to rise more quickly and have a shorter duration, making them suitable for short-term operations.
Sudden good news - sub-new stocks
No matter what state the market is in, if a sudden major good news is announced, it is often an active period for low-priced sub-new stocks. Because there are often old funds stationed or trapped in old stocks, new funds are unwilling to support the old funds, let alone relieve the old funds. Therefore, after major positive news is announced, sub-new stock groups that have not been listed for a long time often become the "preemptive" target of new funds.
Adjustment period - market makers
When the market adjusts, it is an active cycle for market makers. Since market hot spots have long been extinguished, market makers are either trying to save themselves due to the main force being trapped, or potential themes are taking advantage of the weak market conditions to build positions ahead of time... Market makers in weak market conditions are like "soy oil lamps" in the night, although they cannot illuminate. The entire market can also prevent the investing public from despair. At the same time, it can also tempt the "investor minority" to join in "adding fuel to the soybean oil lamp", or attract "moths to the flame".
Sudden drop in the band - indicator stocks
After the sharp drop in the market band, there is an active period for the large market indicator stocks. What can make the market recover quickly after a sharp drop must be the indicator stocks that can affect the overall situation.
Because the effect of "four or two moves a thousand pounds" is great, and also because the cost of protecting the market for low-priced stocks is low.
End of adjustment - oversold low-price stocks
After the large-band adjustment comes to an end, it is an active period for oversold low-price stocks. This is because oversold low-priced stocks with the largest previous declines have the clearest risk exposure and have the strongest technical rebound requirements. Since the general trend has entered the end of the adjustment and has not yet reversed, it is difficult for new hot spots to form, giving oversold low-priced stocks an opportunity to perform.
The establishment of the bull market - high-priced stocks
The establishment of the bull market is an active period for high-priced stocks. High-priced stocks are the "aristocratic class" of the market, ranking at the top of the market. After the market enters the bull market stage, they need to open up space, create bull market space for the market, and play a "pass, help, and lead" role for mid- to low-priced stocks. role.
Rest period - Theme stocks
The market's rest period is an active period for theme stocks. Because market hot spots are scattered during the rest period, individual stock prices begin to rise and fall disorderly, and incremental funds are discouraged. All we can do is use themes or concepts to gather the market's attention, gather limited funds, and attract the momentum that the market has begun to disperse.
Reporting period - "double high" stocks
The annual (interim report) announcement period and the eve are active cycles for high provident fund and high net asset value stocks. This is because such listed companies have the needs and conditions for capital expansion and the need to reduce the net asset value per share through high dividends. After the stock market began to advocate capital gains and low-risk and stable returns, high dividends have also become the favorite of large funds that maintain value in the market.
In a word——————In the battle of the stock market, those who calculate more will win, and those who calculate less will lose. In today's era dominated by institutions, only by listening more, seeing more, thinking more, making decisions before taking action can we finally defeat the market and become the final winner.