The long short game in the A-share market is very cruel. How many people around you can survive in this market? In practical operations, small investors not only need to learn to preserve their financial strength, but also need to choose the right timing to intervene in stocks in a timely manner, make good position allocation, in order to win their financial freedom.

As for choosing the right timing and timely intervention in bull stocks, theoretically speaking, any bull stock will have a "critical point" of starting to rise before rising, just like boiling water. Before boiling, there will always be some signs, such as being angry first. Although it is very difficult to grasp the critical point, since the critical point is an objective existence.

Individual Stock Principle

One of the principles: Do not speculate on the "bottom" stocks on the way down (because it is unknown when and at what price the bottom will be), only choose stocks that have established an upward trend. Among the stocks that have established an upward trend, find the stocks with the strongest trend and the longest upward trend.

Principle 2: Choose stocks that run upwards at a 45 degree angle, while stocks with gradually decreasing trading volume. Stocks trending upwards at a 45 degree angle have the most stable and longest trend.

Principle 3: Emphasize the combination of "trading volume, turnover rate, and trend line" in investment.

Specific tips:

1. Is MACD on the 0 axis

When MACD changes from negative to positive, it is a buy signal. When MACD changes from positive to negative, it is a sell signal. However, when the MACD of our A-share market changes from positive to negative, it may not always be a sell signal. As long as the trading volume increases and a bullish line pulls up, the previous upward trend will continue. Therefore, when selecting the target stocks, we can consider intervening when the MACD returns to the zero axis.

2. Has the trading volume increased

Trading volume and price are important reference indicators for us to select stocks, representing the activity and attention of the stock. When we are preparing to invest in a stock, whether the trading volume is increased is an essential factor that we need to consider.

3. Is there any large capital entering the market

It's a test of the ability to look at the market opening. Pay attention to which funds have entered the market recently based on the increase in trading volume, and whether there are large orders involved. If there are large funds entering the market, it means that the main force has already laid out this stock, and there will inevitably be a series of big moves in the future market.

4. Is there a golden pit

On the technical side of the stock market, there is a trend called the "golden pit". This is the last time that the main force washes out their weak chips to reduce their resistance to upward movement, and then goes long in reverse, leaving the cost zone. The stock price quickly rises from the pit, and a magnificent market trend unfolds with it.

Avoid individual stocks

1. Avoid chasing fake breakthroughs in individual stocks

The "false breakthrough" that hits the resistance level left by multiple ups and downs in history is usually achieved through limit up. If such a false breakthrough in the intermediate market leads to a bad trend and there is no chance to reach a new high, we investors must decisively leave and beware of the main force creating a trap to attract more investors.

2. Fall below the important support level and choose to leave and observe

On the daily chart, there is a huge bald and bare footed bearish line that breaks through the support level. Regardless of whether there is a rebound or not the next day, or when a cross star is closed, one should sell their goods and not have the luxury of rising. It is always right for stocks that experience an avalanche like decline to emerge at any time.

Even if there is a rebound in future stocks, the previous support level will become a key pressure level for short-term rebound.

Taking the example of intervening in the "staircase stock":

The stage of a stock climbing the stairs is often in the early stages of slow position building by the market maker, which leads to a gradual increase in stock price and forms a preliminary staircase pattern. Once the market maker completes the position building, the next step is to clear out the retail investors still in the stock.

Before the banker lifts the market, there are two purposes for washing the market:

1、 It is to alleviate the selling pressure of individual investors when the stock price reaches a high level

2、 It is to increase the average holding cost, and the purpose is also to reduce selling

There are generally two forms of market washing by market makers

1、 It is a vicious and massive smash of the market; For this type of liquidation, you only need to check the number of external and internal transactions on the software. If you find that the number of external transactions is greater than the number of internal transactions (i.e. the total number of red transactions is greater than the number of green transactions), it can prove that the dealer is conducting liquidation rather than shipping. This way, you only need to intervene at the second bearish candlestick or below the opening price the next day after the bearish candlestick appears.

2、 It is a bearish reversal, which is usually when the market maker controls their chips and allows the stock price to flow freely. Due to the lack of market makers purchasing and the stock price rising for several days, the stock price experienced a bearish trend when retail investors were buying more and selling more. The entry point for this type of stock is usually when the stock price has been continuously declining for two to three days, and the trading volume has significantly decreased compared to the previous period, which is the buying point. If it only shrinks after four to five days of bearish candlestick, do not buy.