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china's stock market: just memorize "five numbers" 10, 20, 50, 60, 721

2024-10-01

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the stock market is turbulent and unpredictable, and no investor can guarantee that he will always be invincible in the stock market. there are many excellent investors in the market, and investment strategies and methods can be used as a reference. however, it is important to understand that other people’s ideas, even the essence, will always belong to others. the most important thing is how to find the best ideas among the vast sea of ​​theories. what suits you and transform it into your own investment style requires long-term practice accumulation. therefore, after investors enter actual practice, they must pay attention to the accumulation of knowledge and comprehensive understanding, and constantly adjust investment strategies according to their own preferences. over time, they will definitely form their own investment style.

making money by stock trading is actually very simple, just memorize "five numbers": 10, 20, 50, 60, 721

1. 10 - no more than 10 stocks

risk-tolerant investors are advised not to buy more than 10 stocks. because according to expert statistics, the final return of a portfolio with more than 10 stocks is not impressive, and investors are simply too busy. there are many new investors who like to "spread evenly" when they first enter the market, thinking that the more stocks they hold, the higher their income will be. the euphemistic name is: risk differentiation and rational allocation of assets. we all know that eggs cannot be put in one basket at the same time. in fact, it also applies to the stock market. in addition, the industry sectors in which the shares are held must also be differentiated.

2. 20% - the best profit-taking point (it is safe to fall into the bag)

the purpose of stock trading is to obtain real profits in the stock market. at the beginning of holding each stock, you should first set a profit stop point to make a profit, rather than floating profits in the account. there is money that can never be made in the stock market, but there is money that can be lost. therefore, it is recommended that investors set a profit stop point when buying stocks. according to statistics, 70.8% of investors are currently caused by the word "greed". they have turned from profits to losses, and from small losses to big losses.

3. 50% - the golden ratio of holdings

the most important thing is to control the position ratio, and you will not have the trouble of being trapped. at the same time, even when attacking, you have enough "bullets". if you are trapped, you also have enough "bullets" to cover your position. that is, if you hold 50% of the position, you need to reserve 50% of the funds for a short position. although the total assets and market value continue to change as the stock price rises and falls, you must remember the golden ratio of 50% of positions when you first enter the market.

4. 60% - low price judgment

retail investors often tend to buy the bottom when prices fall, but little do they know that "there is a basement under the floor." so when is the right time to buy the bottom? the 60% principle means that when individual stocks adjust, if the drop from the highest price is more than 60%, the price is low, and it is appropriate to buy the bottom. hold shares patiently and wait for a new round of rising stock prices. therefore, investors can refer to this "60% ratio" to avoid blindly chasing the rise and falling into the trap. it can also improve the utilization of account funds.

5. 7-2-1——“spell”

721 is what investors often talk about: "seven losses, two draws, and one win." if investors want to make profits, the most important thing is to learn and establish correct investment concepts. it is not only necessary to analyze the fundamentals of listed companies, but also requires macroeconomics, psychology, stock market technology, comprehensive quality, etc.

of course, this is not a panacea. the above stock market investment rules still need to vary from person to person, and the investment ratio must be adjusted in time. in addition, in daily life, investors should pay more attention to learning relevant professional investment and financial management knowledge, strive to improve their investment and financial management skills, and use various investment and financial management channels and tools to maintain and increase the value of their wealth.

only buy two kinds of stocks after making profits for many years, so that you can make a lot of money

the first situation: jump up and buy with yin and yang lines

description of form:first, the stock price is in an upward trend, and then there is a white candle that jumps upward. after the white candle, there is a black candle. the opening price of the black candle is in the real body of the white candle, and the closing price is below the real body of the white candle. the closing price of this black candle constitutes the buying point. under normal circumstances, the bodies of the two candles will not be too long, as shown in figure 1-1.

buying point analysis:in an upward trend, an upward gap is a sign of market strength, and sometimes a retest action occurs. when the stock price jumps upward, the black candle that appears after the white candle that jumps upward can be understood as a consolidation of the white candle of the jump or a retest of the gap. after an upward gap appears, the gap will provide support to the stock price. in fact, the black candle after the white candle becomes the test buying point for a jump back.

if after the black candle, the stock price continues to fall after covering the gap, then the upward gap and the parallel yin and yang lines will fail. this is also the gap trading mentioned earlier. in actual trading, it is extremely rare to have a perfect upward short jump and juxtaposed yin and yang lines. it often happens that the lower shadow line covers the gap and inserts the previous candle body. however, as long as the real body is above the candle body before the short jump, it can also be viewed as it is a jump and juxtaposes the yin and yang lines. the short jump paralleling the yin and yang lines is actually the application of upward jump gap trading. aggressive investors can buy at the buying point where the gap is parallel to the yin and yang lines, and sell after breaking through the gap; prudent investors should buy after the upward rebound to improve accuracy.

this form has higher requirements. it must first be a short jump. on this basis, the white candlestick cannot be too short, otherwise it will be suspected of a star line; the upper and lower shadow lines cannot be too long, otherwise it will be suspected of a shooting star line and hanging neck; the next day's negative candlestick the opening price cannot be higher than the closing price of the yang line, otherwise it will be suspected of a dark cloud cover or a bearish engulfing pattern; the closing price cannot be inserted into the entity of the yang line before the gap and parallel yin and yang lines, otherwise it will be suspected of reversal. in short, the conditions are quite harsh, so it is rare. here is just one example as a real offer verification.

real offer verification:as shown in figure 1-2, the yin and yang lines are juxtaposed with an upward gap. the stock price gapped upward at the opening, followed by a black candle. its opening price was within the real body of the previous white candle, and its closing price was lower than the opening price of the white candle real body. price, these two candles form an upward gap and a parallel yin and yang line. the lower shadow lines of these two candles cover the upward jump gap. as we said, the upward jump and juxtaposing the yin and yang lines are actually testing the support function of the upward jump gap. the black candle is affected by the gap below. along the support, its closing price constitutes the buying point. on the day after the upward gap and the parallel yin and yang lines, a bullish belt line pushed the stock price upward.

the second situation: cross morning star buying

description of form:as shown in figure 2-1, the cross morning star appears at the bottom of the market, which is a bottom reversal pattern. a black candle is followed by a doji that gaps away from the black real body, followed by a white candle, with the white candle's real body inserted into the black candle's real body.

buying point analysis:figure 2-2 shows the reversal process of the cross morning star. the first black candle looks like the market is lifeless under the shroud of selling, and buying is still missing. however, the appearance of the cross lines makes people wonder about the market trend: selling is exhausted or buying is stepping in! the crosshairs give the market a warning. is the stock price going to bottom? if the cross line is followed by a white candle, and the entity of the white candle in front of the cross line is inserted, the warning of the cross line is verified. these three candle lines form the cross morning star pattern, and the bottom buying point is established.

the basis for determining the cross morning star is as follows:

(1) there was a downward trend before.

(2) it consists of three candles, the first is a long black candle, the second is a doji star line, and the third is a white candle.

(3) in principle, there is a gap between the high point of the cross star line and the real body of the black candle. the real body of the third white candle needs to enter the real body of the first black candle (if there is a gap between the high point of the cross star line and the real body of the black candle, the reversal is more meaningful. big).

real offer verification:as shown in figure 2-3, the scale of the cross morning star in the picture is relatively small. although the sparrow is small and has all the internal organs, especially when it appears at a lower price level, it still has important significance. it reflects the small trading volume. after the star, the rise in stock prices was further verified, and the zhongyang candle continued to move forward and inserted into the previous long yin entity. there is a failed morning star in the chart. the white candlestick body in it is very short. the subsequent black candlestick engulfs the small white body and the doji, declaring the morning star pattern failed.

as shown in figure 2-4, the stock price has experienced a long and large-scale decline from the high point of 15.08 yuan to the low point of the cross star of 6.88 yuan. the appearance of the cross star at this time is of great significance. a cross star has appeared for two consecutive days with a long lower shadow, indicating that the selling power has been exhausted. the candle chart shows the natural law of one ebb and flow. the positive line after the cross star represents the new force of buying and the beginning of the rise of the positive line. the previous yinxian entity constitutes a buying point. in this way, the two cross stars and the yin and yang lines before and after form a double cross star (cross star 1). the following cross stars 2, 3, and 4 are all formed at the bottom of the callback, launching a new trend. round of rising.

summary: judging buying points based on the following situations will improve accuracy.

(1) the larger the previous downward trend and the longer it lasts, the greater the possibility of reversal.

(2) there is a gap between the star line and the lowest price of the previous candle.

(3) the next day is a long white candle with a gap. the larger the gap, the more advantageous it is.

(4) the next day's white candle goes deep into the black candle body before the inverted hammer.

(5) the next day's white candle is accompanied by trading volume that exceeds the previous black candle.

finally, achievement comes from foundation, accumulation, and opportunities. it depends more on your own control.and how to grasp it is even more important.what did you realize? it’s the way! it is the law and the true nature of things.it is the cause and effect deeply hidden under various appearances. there is a way to get it, but it is impossible to go against it. how to increase awareness? you can only participate, think, and experience it yourself. but it is not easy to realize these things.

in fact, people who look beyond appearances to see the essence of things do so because they are constantly experiencing the process of awakening and enlightenment. the world is as big as your mind is. what you cultivate in the investment market is a kind of character. what you get is what you can get.

the stock market magnifies human nature tenfold for others to see, for the market to see, and even more for yourself. gains and losses in trading may seem important, but in fact they are not the true holy grail that the stock market brings to traders. tempering traders' humanity, creating a peaceful state of mind, and feeling the true taste of life are the greatest wealth that the market brings to traders, and ordinary people will only understand these wealth as they grow older. there is no golden house among them, but only the word "willingness". !

trading is like kendo. if you want to be a first-class trader, when all your energy is focused on the profit target, your emotions will often fluctuate with the market's stimulation and temptation, and your mentality will gradually lose peace and tranquility, which will backfire on you. if you turn off the computer display, you will find that your mind is blank. are the price numbers moving? is the screen flickering? it's all just your heart moving. try to stay away from the market, a little further away, take out your dusty notebook, write down your trading plan, plan your trading, trade your plan, the stock market is actually that simple.

don’t fall into the trap of pursuing winning percentage. every trader has the pursuit of continuous optimization of the trading system. a basic trading system should indeed have elements such as price judgment, fund management, and risk control. however, on this basis, many traders are always working tirelessly to optimize it is a misguided approach to judge this factor by trying to find a higher winning rate and better entry and exit points. newton said, "i can calculate the movements of the heavenly bodies, but i cannot deduce the madness of the human heart." what we need to optimize is not a more accurate judgment of price, but the weakness of human nature itself. losing money in a volatile market is a fate that even experts cannot escape. it is objective and real. you must understand that it is as natural as breathing, and you must accept it rationally instead of resisting it. stop loss when it reaches the stop loss position, take profit when it reaches the take profit position, and let it go if it fluctuates between the two positions.

plan your trade, trade your plan. don’t be overjoyed when you win, don’t be discouraged when you lose. this is the formation of a habit, and habits determine character, and character determines destiny. look at the period when your capital curve dropped sharply. which time was it not caused by failure to follow your trading plan? only by observing discipline can you achieve peace of mind and thus lasting happiness.