Rule 1: In a loser’s game like trading, we play against the crowd and assume we are wrong until proven right (we don’t assume we are right until proven wrong).
Established positions must be reduced and eliminated until the market justifies our trades. It is very important that you understand what we call the unwind rule: we unwind positions when they are not proven right, we don’t have time to wait for the market to prove you wrong. Waiting is wrong, will eventually perish! Your way of thinking should be that you can do nothing when your trades are right, not just stand by and do nothing when your trades are wrong! Mistakes mean Losses rule # 2: Learn to increase! There’s only one way to make a lot of money. Add to your earning positions without exception and correctly. Fry short-term, when deciding correctly, heavy storehouse reduces storehouse according to rule next, or add storehouse according to rule 2 immove. Notice the “right”. A good strategy for winning positions is to double your position, which is the correct way to do it. You also have to keep your position in the winning category larger than your position in the losing category. Overweight a position that has been confirmed to be profitable must be executed correctly so that no new position is created at the top to avoid possible risk. Each increment must take a small step. For example, if your original position had a 6-position contract, add 4 positions on your first increase and 2 positions on your second increase. By adding a total of two positions, you double your original position to a ratio of 3:2:1. When my trades turn out to be correct, I tend to add immediately because my trades are long and small. Trend traders increase their positions when they are sure they are right, while day traders reduce their positions when they are wrong. When a day trader makes a mistake, the position can be heavy; Trend traders, on the other hand, never take big positions when they make mistakes. This is due to the nature of daily trading. By reducing your chips, your exposure to market risk is not high. Rule number one is ongoing. He’s got a big position to start with, and that’s actually rule two. The essence of rule two is that when you trade correctly, you have to build as many positions as you can. The downside to his approach is that when you make a mistake, your position is too big. So, protection with rule one is key. So why would I encourage you to build a half barn when you enter? Because it’s a loser’s game from the start, and you know that from rule one. In rule two, you discover that to trade properly, you should never start a full position. First, you have to design your own trading plan, and then use the market to prove that your position is correct. You don’t have to wait until the market opens to decide what you are going to do during the trading day, the only thing you have to do is execute your trading plan according to rules 1 and 2. When you’re a novice, you don’t know how to trade. You can’t control where the market goes, and you can’t control the money that goes into the market. You can’t be sure when a strong fund is profiting or building a new position, and it’s impossible for anyone else to tell you exactly. All you have to do is set up your own standard or trading plan to include all the possible scenarios. I can provide you with an analytical forecast that correctly shows the price trend. It will give you a good idea of the market trend, but you should know that the trend movement is bound to have the opposite price movement, which can cause you to face a huge setback. If you don’t have enough money to take the risk, the correct analysis I’ve given you will cost you everything. Don’t sell at triple bottoms or buy at triple tops. You may miss a few moves, but in order to survive, we have to be willing to lose a few profits. It also saves you from chasing the market all the time. Markets have peaks, lows and ranges every day. Use them to work for you, but don’t always follow the market. Stay active, even if you temporarily lose a trading opportunity, in exchange for long-term survival in the market.
1. The theme of the stock is to tell a story, whether the story is true or false, as long as the good story on the line. 2. Trading volume has been very small for a long time, as long as the volume does not magnify to the sideways decline, can come out first, even if the rebound is so small if the height is limited. Wait for the volume to go in again, so as not to suffer in the inside. 3. Do not buy too many too cheap stocks, less than 5 yuan of stocks are very rubbish, do not think cheap will not fall, often such a stock rebound is very slow, focus on 10 yuan of stocks, relatively high activity. 4. Choose familiar stocks to invest in. We already know the “temper” of familiar stocks and know when to buy and when to sell. 5. Buy stocks must be calm, must have more than 80% grasp, would rather step empty also do not quilt. Made money to sell a few can optional, just earn more earn less problem. We must exercise our psychology to overcome blindly chasing high. 6. The chart is very good and has formed a bottom, and continued to increase volume relying on the 5-day line rising steadily, in line with my stock selection criteria. 7. Stocks are not active, stupid than China Petroleum and INDUSTRIAL and Commercial Bank, rising very slowly, is such a stock set on the very troublesome. This stock won’t go up much even if the market hits a new high. 8. Do not suffer message influence, go buying alleged copy bottom, you are not banker, know impossibly what buys right now is stock lowest price certainly, when choosing a stock so, want to choose trend to be strong, rise the stock with best momentum. 9. Buying is very important, no matter what the market, unless particularly strong stocks, it is best to intervene on dips. 10. Rational investment, restraint of emotion, investment in stocks to have good psychological quality. Investors are often emotional about the ups and downs of stocks, which can affect operations. Do not be emotional, be sure to learn self-control, rational investment. Sometimes Stockholders can build storehouse hastily as a result of impulse, also sometimes can and some stock “compete”, cut storehouse is in “floor price” on. Opportunities will arise at any time, so there’s no need to lose money on impulse. 11. Buy a stock no matter which board buys bibcock fast, the bibcock that I say is not famous big dish big however go up much, go up fast stock. Similarly, the leading stocks rose much more than other followers, but also resist the fall. Buy to buy bibcock stock, cannot because of rise much dare not buy. For example, recent letv network, Quantong education and so on. 12. Stocks that break new highs on weakness deserve focus. 13 short-term operation with the following conditions 1, to have a principle do not care about a day’s gains and losses to dare to stop loss. Like hot spots to have the courage not afraid to chase high. 3. I buy stocks 15 minutes before the market opens and 30 minutes before the market closes. In addition to the index, you should also look at the number of stocks in Shanghai that have risen by more than 6%. If there are too few stocks, don’t participate. 15. Stop loss and position control is the first step in the stock market, the second step is to exercise their psychological quality. Keep your participation to a minimum during bad times. Even if you buy once a week and earn 3% each time, you can make a lot of money a year. 16. Not only should you have good stocks, but more importantly, you should buy and sell them. The latter is more important. 17 to buy the stock is mainly the following three categories 1. Breakthrough box shock new high 2. Hot theme stocks 3. Having a large bottom, especially one now forming a head and shoulders bottom or double bottom. 18. Don’t have more than 3 stocks if you don’t have a lot of money. When the market is good, it’s usually 2 and when the market is bad, it’s 1. 19. The market must avoid frequent operation when it rises sharply. It is good to operate frequently when the market shocks or falls. 20. Everyone must learn to buy stocks later, no matter how good the stock is, it can not make money to buy high, and no matter how bad the stock is, it can also make money to buy low position. Buying and selling points matter even more than stocks. This needs their own observation and summary of experience, at least to learn to look at the average, short – term 5, 10 day line. Below the circumstance with good market, strong stock adjustment won’t break 5 days line commonly, 10 days line is very good intervening opportunity to 10 days line at most when the market is poor. If you spend most of your time in a short position waiting for strong stocks to fall to the 10-day line, you’ll make multiple times that amount a year, assuming you do this three times a month and earn 8% each time. 21 do short-term to learn to sell, regardless of the hands of the stock is up or down. In the case of a bad market as long as the hands of the stock to pull up, sell in batches to avoid risk is right. 22. Focus on volume, quantity before price. See a stock basically sees turnover, see turnover need not see K line chart, can know the trend of a stock basically. 23. I like to handle stocks that make new highs. Generally speaking, stocks that make new highs will not fall below previous highs. Such stock did not catch dish, rise more relaxed, mostly have more aggressive main operation. It is safer to buy such stocks. 24. Hold a full position in a stock, make T+0 difference 0.5% every day, it is not difficult, a month down also have a good return. T+0 price difference must not be greedy or it will be easy to step on the empty. If buy to do difference, earned a bit to sell a bit, go up while selling, prevent a lot of falls. 25. Act decisively, don’t hesitate. Hesitating is easy to miss the investment opportunity, in the critical period of worry about gains and losses, can not grasp the best time, indicating that they have not accurate judgment of the market. Want to see turnover when trading, if index drops sharply and turnover falls below half of average amount, right now buy risk is very low, it is the optimal opportunity of investment, people should seize this opportunity, decisive move, must not be hesitant. From a psychological point of view, the more we think the policy bottom is, the more we fall below the policy bottom. Moreover, the fund does not talk about politics, and the government can not introduce substantive policies, so the bottom of the policy is often unguarded. 27 the market above the average dense, without a certain volume is impossible to break through, even if the breakthrough will fall down, the so-called quantity in price is the truth. 28. The gold fork above the central axis of KDJ is not a bad thing, indicating strong strength, which is also the result of horizontal disk arrangement, BOLL line narrowed to choose the direction. 29 times the best new shares do not touch these shares are highly overvalued after listing to make up for the fall. 30. The longer the gap is filled, the longer the market sideways, the more adverse the development of the future market. 31. You can’t trade with the trend, and you can’t do it with your will. Always good place to think, always want to buy their own stock must rise. Think they are full market will certainly not fall tomorrow. It is bad to be always under the illusion in the stock market. 32. In simple terms, the wave theory mainly consists of five big waves rising and three small waves falling, and each big wave is composed of several small waves. Although there is a suspicion of hindsight, but in the long run there is a great sense of reference. 33. I analyze a stock the most important index is a trading volume, generally speaking, the stock should continue to rise must want trading volume amplification, especially stock technology horizontal dish collation or up breakthrough important point must mix volume amplification. In the continuous rise of stocks, as long as the trading volume of the day is higher than the trading volume of the previous day, if the market is not too big a problem stocks will be high. In addition to the volume of the first to learn to look at the average arrangement and K line shape. That’s all you need to know. There are some MACD, KDJ, BOLL and other indicators are also more commonly used, the general master looked at the front of the average, K line shape will know the trend of these indicators. Of course, the more comprehensive the analysis is, the more a lot of indicators are used to hold the stock at the same time. 34. Generally speaking, can continuously pull up the stock, in the later period of the general opening price cannot exceed 2, if the explanation banker opened high to put goods, generally low 1-2 between the best. 35. Don’t sell at the opening. It’s a big no-no. There will be opportunities to go high in the middle. 36 the day to pull up the stock, generally high degree of control, the market does not fall it. For stocks that don’t rise much in the short term, there’s very little room to move up or down more than 2. Occasionally appear banker to pour to explain stock to have different move. Short – term big stocks tend to dip to the 5 – day line. The stock should pull up turnover to want magnification, a look at the first time to intervene than late intervention is good. 37 short term not into large-cap stocks, short term not into the institution of heavy positions, short term not into the size of non-stocks. 38. Stock market masters are not technical but psychological. You have to be mentally mature to navigate this market. The person’s psychology, disposition, ambition is in stock operation burst leak without discharge. 39. Generally speaking, don’t buy stocks that fall by the daily limit. 40. Do not be affected by the news, to buy the so-called bottom copy, you are not a banker, it is impossible to know that what is bought at this time must be the lowest price of the stock, so when choosing the stock, to choose strong trend, the best stock. 41. Never trust the “teachers” of TV stock reviews. If they could really tell which stock would rise by the daily limit tomorrow, would they need to be in the “promising profession” of commenting on stocks? 42. You look at the K-chart of a stock, look at it again and again, and eventually you see a pattern. 43. Do not frequently change shares in the general market, the general market is easy to buy stocks to buy 2 minutes before the closing, because good stocks are trading, poor stocks you buy is easy to fall back. 44. If strong stocks fall while the market, it is a good opportunity to intervene. 45. More people may have such an idea: if they buy the stock, they always think about the good side of the stock, rather than the bad side, and even don’t listen to others saying that he is not good. This situation is known as selective distortion in psychology. 46. A good stock may not be bought at any time. Buying and selling a stock is more important than picking a stock. You can’t make money if you don’t buy a good stock. So if you miss the opportunity to buy, do not see others make money their psychological imbalance rushed in, the result of buying at the highest point this is a big no-no. Overcome this one problem can become a stock market master. 47. Buy stocks and buy taps. 48. If the stock of a fund is difficult to rise, it will be sold once it rises. 49. A large overcast breakdown of all averages should also be a signal to leave. 50. Don’t rush to sell stocks and wait for them to rebound to sell a wave of highs. And you can’t sell a stock when it’s plummeting because it’s easy to sell at the bottom.
Ride a horse to ride big black horse, buy buy bibcock, do ox ticket only, do not do bull market! What circumstance can’t buy the shares: 1, the strong trend empty, do not want to buy, buy more don’t bought 2, plate overall situation is bad, do not want to buy, leading sector, market need 3, 30 – day moving average is falling or shares in a daily average of 30 of offline, don’t buy, broken lifeline 4, shares a bad stock, do not want to buy, buy shares good 5 zhuang, breakthrough volume of poor performance, don’t buy it. Enough not to buy 6, trading volume in huge amount not to buy, not to buy huge amount check company 7, energy or momentum not buy too much, or too high without adjustment not buy shares in 8, the technical indicators are not mature, don’t buy, oil without foot 9, when potential uncertainty after the price trends do not buy, unclear direction not to buy 10, has a very wide at the bottom of the stock to buy, how long the cross, ShuYou 11, how high is slowly falling, has gone down channel of individual stocks, not buy, sewers, no good goods 12, had been a run-up, banker have been evacuated from or are out of stocks, not to buy, no one hundred days red 13, consolidation period, suddenly pulled the sun thread in pan, don’t buy, weak back after 14, break through the plate bureau, Has been three consecutive sun thread without adjustment (30%) do not buy 15, the first high near the previous high, as long as don’t harden not to buy, pick the top selling goods 16, do not have shorter average arrange not to buy bulls, all 17 line is bad, no matter how good, don’t buy shares rise after a long, chasing high not buy 18, would rather miss a chance to make money, 19, as long as the body is in the stock market, never guess the bottom, also do not predict the top, the trend of life for 20, every wave of market, there is always the mainstream, tributaries, the end (follow the trend) plate points, in order to win the general trend, it must follow the mainstream plate, especially the leading shares! Ride a horse to ride a big black horse, buy stocks to buy leading stocks