Emotional turning point is a word I mentioned many times in my resume article. Because emotions are nihilistic, you can only feel them with your heart, and you can also experience the ups and downs of the market through certain statistical data. So many friends leave messages backstage to show that they don't understand. On Saturday, I took the time to tell you what is the market sentiment cycle and its application. Step 2: Understand emotions
Emotion, first of all, we understand human emotions, which can be understood as a state of physical and mental excitement produced by individuals after being stimulated. Everyone can experience the occurrence of emotions, but it is difficult to control the physiological changes and behaviors caused by emotions. In our trading career, there are roughly two emotions that can affect the success of trading.
1) Positive emotions: enthusiasm, hope, confidence, optimism, perseverance, etc.
2) Negative emotions: such as fear, anger, greed, pessimism, despair, superstition, etc.
Similarly, market sentiment can be roughly divided into depression, recovery, excitement, climax and recession. As a successful trader, in temporary trading, there is often no self-emotion, but objectively feel the market sentiment and make relevant operations. Therefore, the essence of speculation should be to take advantage of the fluctuation of market sentiment, rather than being kidnapped by market sentiment.
Step 3: Emotional cycle
Furthermore, we understand what market sentiment is-the external performance of market operation is the market structure, that is, the daily index rises and falls, the quantity and energy, the number of stocks that rise and fall, which hot sectors lead the rise or fall, and which are in various stages such as start-up, confirmation, fermentation, acceleration and divergence. The law of market fluctuation reflects the market sentiment we want to feel, which makes us feel depressed, revived, excited and even climaxed.
In the past, I expounded my understanding and operation of market cycle and leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading leading. Since the market has a cycle, so does the market sentiment of market segmentation. In a complete emotional cycle, it covers the stages of market sentiment, such as start-up, confirmation, fermentation/acceleration, disagreement/unity, climax and decline. With the beginning and end of the market sentiment cycle, there is always a core leading stock, which is the target that leading tactics should focus on in general. Therefore, today we focus on the understanding and application of the market sentiment cycle from this core leading stock. The fourth step: the start-up stage of the market sentiment cycle.
The start of market sentiment is usually accompanied by the rise of main hot spots and the turn of index direction. The leading stocks in the core of the mainline hotspot sometimes * * * oscillate their same-attribute plates and indexes, and sometimes precede their same-attribute plates and indexes. When the market continues to fall and the mood in the market is depressed, we should focus on the stocks that are unexpectedly linked, pay attention to the linkage effect of the stocks related to their attributes, and start strategy trial and error. To put it simply, when the market sentiment is low to freezing point, we should consider buying some unexpected linked stocks, play an emotional game of trial and error and feeling the funds in the market, and get on the bus as soon as possible when the faucet starts. Rustell
Steyr Step 5: Understand vibration.
In other words, the first board of core stocks is often launched at a very favorable moment in the market, and then brought to the same real estate sector to rise first, to reverse the depressed mood of the market, and the funds are turned to do more consistently, and the same real estate sector is tapped to follow suit and other stocks. There is a simple saying for this kind of stock, that is, to turn a dragon or a dragon, you need to respond quickly and confirm buying on the board. For example, the corresponding trend of Boshen Tools and Shanghai Composite Index on May 20, 200711.
Boshen tool
When 13: 16 plunged again after the market continued to fall, the funds took the lead in igniting Boshen tools to attack. 13:35 after the closure of the board, it will drive the index to turn around and rebound, and also drive the stocks with the same attributes as entrepreneurship and environmental protection to board;
The sixth step of Shanghai Stock Exchange Index: Understanding before.
In other words, the core stocks started before the plate, index and emotional cycle, and their continuous rise led to the inflection point of market sentiment, the upward rebound of index and the rise of stocks with the same attributes. Often at the beginning of the market sentiment cycle, the previous core stocks have been connected. Therefore, when the market is depressed, we should focus on stocks that exceed expectations and try to buy them. For example, from June 20, 2008 to June 20, 2008, Lions Technology and the corresponding Shanghai Stock Exchange Index (similar stocks include Ji Tai shares, which are not listed in detail here, so you can refer to them yourself).
Mengshi technology
6. 19 Affected by the news of friction, the market opened lower and plunged, closing down by more than 1000, and more than 2,600 fell by 5%. Xiongshi Technology, which oversold+lithium battery, had a daily limit before the index;
Mengshi technology
On the day after the 6.29 plunge, Lions Gate Technology quickly joined the daily limit, driving oversold+stocks to board, and the index began to rebound gradually, driving stocks with the same attributes to rise and opening a new emotional cycle;
Mengshi technology
Core stocks lead the same-attribute stocks and indexes to rise, which opens a market sentiment cycle centered on them, but this is only the beginning and belongs to the trial and error stage. In other words, like many people who fall in love, some people realize that they are holding hands, then they get married and have children, and grow old together. Some people start with understanding, and may end up confessing, getting married or something. Therefore, there needs to be a confirmation stage to confirm whether the new market sentiment cycle lasts and successfully develops to the next stage. Step 7: The confirmation stage of market sentiment cycle.
After the hot spot of the new main line rises, that is, after the opening of the new market sentiment cycle, a confirmation stage is needed. Generally speaking, the second board is the faucet board. In fact, this second board is not just literally two boards, but a joint board, that is, the day after the closing of the board, the leading stocks confirmed, the core leading line and its leading stocks confirmed. Why did the board connect and seal the board the next day?
Mei Lian Xin Cai
Because of the short position, at the moment when the market is extremely hot, there may be hot spots brought out by more than one leading stock, which will continue the next day, but the market will have a screening process, and in the end there is often only one main line and one core stock. In addition, under some special circumstances, when the market is extremely hot, we step out of the dominant and main line and start a new emotional cycle. However, due to some irresistible external factors, all the dragon heads died the next day, and they returned to the depressed period without leading and hot spots and could not continue. Therefore, after the new market sentiment cycle begins, we need a confirmation stage, which is an important opportunity to confirm positions and buy on the temporary board. In other words, after you know that you have confessed, the other party agrees to be together, and the two sides can have further development. For example, 2065438+June 9, 2008, Lion Technology and Ji Tai Co., Ltd.
Ji Tai stock
6. 19 On the day of the market crash, the three stocks that came out of the chip were Cheng Xiao Science and Technology 3 Board, Ji Tai Shares with rights allotment and Warrior Technology 1+ 1 Board with oversold+lithium battery, which were ahead of the index and represented the third line of the market respectively;
Mengshi technology
The 6.20 index rebounded. On the opening day of the new emotional cycle, Cheng Xiao Technology was the first to go out, leaving the competition between Jitai and Xiongshi Technology. Among them, Ji Tai's time-sharing performance is stronger than Xiongshi Technology;
Mengshi technology
6.2 1 On the second day of a new round of market sentiment, Mengshi Technology opened higher and faster, and the second board closed the daily limit to the close, while Ji Tai opening limit changed hands and closed the daily limit, but eventually broke the position and lost in the competition with the leading leading shares of Mengshi Technology;
Ji Tai stock
One thing to note here is overclocking three. Because of its high space and the composite properties of lithium batteries, Lion Technology of lithium batteries and the shares of Ji Tai with power can be regarded as the logic of overclocking three's low-level compensatory growth. Therefore, the strong rise of Lion Technology and Ji Tai in the low position has stimulated the high-level overclocking three family to continue to rise and help it become a demon.
Overclocking three
After the market sentiment begins a new cycle, the main line and its core stocks can only be determined after the confirmation stage, and then the core stocks can be fermented and the compensatory stocks can be tapped, so that it can be extended to the next stage, that is, the fermentation/acceleration stage of market sentiment. In other words, when two people in love are confirmed together, their feelings can quickly heat up and then they can go further. For example, the sky on the floor is super clean on Friday.
In the layout of individual stocks, my consistent style is to ambush potential stocks in advance, and announce three tickets that can increase by more than 25% in a week on time every week. For example, Contemporary Ampere Technology Co., Ltd., which was shared on July 1 1, earned 25% in eight cycles; On July 16, Danbang Technology, which reminds everyone, picks stocks in one minute, with a profit of 39%! Zhao Xin, who used the rising stock picking method on Wednesday to remind everyone, has already gained two daily limit! Next week, the bull market was released in 2007, and the increase is expected to be no less than 25%. Please check it yourself in the circle of friends (kdj0053)! Absolutely free! Zhiqiang summed up three hot spots, so you can pay attention to them!
Tianhua chaojing
Because there are many things to write, it takes a lot of time and energy to finish them in detail. In order to write the logic as clearly and completely as possible, and also to be responsible for the friends I care about, I will write here temporarily and continue next week.