Profit models and short-term operation skills of individual investors in stock trading (II) Practical skills

Short term operation technique 9: Tightening up and replenishing positions to seek capital preservation, and expecting profits is greed.

This trick is a common mistake that people often make, and I have seen it many times with my own eyes. That is to say, when you are trapped, you have added a position of technical support, or increased the volume to add a position, but you need to be clear that your goal in doing so is only to move back your capital. When there is no loss in the rebound, you should sell in a timely manner. However, many people see the stock price rise and think that if it rises again, they will earn as much as they want. The result is that it falls back and they are trapped again. This time, even the self rescue funds are gone, and they can only wait for death. Therefore, it is listed to show everyone.

Short term trading technique 10: One push and two recommendations won't go up, so you have to go down and shake up your position again.

This trick is very important and is a hidden rule in the stock market. Mainly for stocks. This situation is usually: a stock has been recovering for a long time and is nearing its end, mostly in a platform consolidation state. It has been recommended by people one after another, and the fundamentals are indeed good. But if you buy it, it just doesn't move much. One day, it suddenly breaks down and you curse and sell it, but you will see that its candlestick has been rising after making a pit and easily breaks through the original consolidation platform, leaving behind dust. You were left behind like this. Everyone was optimistic, but it didn't rise. However, after 20 days, it suddenly broke through the level. After making a standard pit, the K-line easily broke through the previous platform and has reached a new high.

Short term trading tip 11: A red line in the green shade, buy quickly and don't relax.

This trick states that when a stock or warrant experiences a continuous downward correction for several days, such as three, five, seven, nine... bearish lines, showing a green trend, one day you may find that the candlestick may close with a bullish star or a small bullish line on the same day. There is no need to analyze the reason, it is the main force's consolidation, buying, or some kind of volume trading. Despite entering, there is usually a long bullish line rebound the next day. This phenomenon of warrants often occurs in put options, and the response requires a more rapid response.

Short term operation technique 12: The decline slows down, and the rebound also slows down; The decline is accelerating, and the rebound is also fast.

There are generally two types of decline patterns, one is the gradual decline type, and the other is the accelerated decline type. The meaning of this formula is that in a continuous downward trend, if the magnitude of the decline appears to be smaller and smaller from the daily candlestick, the rebound usually starts relatively slowly, and you have plenty of time to follow up. However, if you look at the daily candlestick, the trend of a larger and larger decline suddenly starts to rebound, with fast speed and large magnitude. You must react quickly to catch up, otherwise, when you discover it, it will already be a big bullish candlestick with a long downward shadow at the bottom, and the profit margin will be limited if you enter later. Formula 11 is mainly aimed at the slow-moving downward trend. For the accelerating downward trend, if you wait until the K-line turns red to enter, it will be a bit late. Therefore, you need to "move in time" and rely on your feelings to grasp the best timing. Usually, it is decisive to intervene at the "most dangerous moment".

Short term trading technique 13: Calm the water and be careful of the big waves behind.

A small military exercise, followed by a major battle. These two sentences have the same meaning, which is to look at the technical characteristics of the initial start-up at the bottom from the continuous time-sharing line. When a stock or warrant has been sideways at the bottom for a long time, its continuous intraday chart will show a very gentle shape, such as a sloping slope or a calm water surface. However, when one day a relatively high wave suddenly surges up on the water surface and cannot return to the original water level, a more astonishing large wave will often come later. The small wave in front is like a small military exercise, while the big wave behind is the real big battle. In the candlestick pattern depicted by the "One Red Line in the Green Shade, Buy Hard and Don't Relax" trick, the small bullish line of "One Red Line" is the "One Wave High" that rises for the first time, which is the "Small Exercise", while the "Big Wave" and "Big Battle" are the long bullish lines that will appear the next day.

Short term trading technique 14: For the first time with a long bullish trend at the bottom, firmly hold onto the stock until the market closes.

This technique is particularly important for warrants, especially for put options. When a warrant has been consolidating at the bottom for a long time and suddenly rises a bullish candlestick one day, the length of this candlestick is often unpredictable. Due to the long consolidation time, people gradually forgot about it. When it suddenly pulled up, people couldn't immediately notice it. As people kept discovering and chasing after it, its gains became larger and larger, often closing at the highest point. And the person who originally held it, because they have been trapped inside for a long time, has become so patient that they cannot bear it anymore. As soon as they see it rise, they cannot resist the impulse to sell. If they sell, they are wrong because it has just started at the bottom and will show great performance the next day. Therefore, at least they must persist until the closing before making a decision.

Short term and long-term skills 15: A huge bullish candlestick shines overhead, and I clear my position after grabbing the market at the end.

This trick is to continue talking about the operation of the long bullish candlestick at the bottom. Continuing with the thirteenth trick, as everyone continuously discovers the large bullish candlestick at the bottom and keeps chasing after it, the increase of the warrant will be as high as ten or twenty points, even doubling. If there is still a rush to buy until the close, the K-line will close with a bald bullish candlestick, and I will clear all positions at the moment of closing. Because the next day often opens significantly lower or quickly falls after opening higher, it will not be possible to maintain yesterday's earnings.

Short term investment technique 16: A huge bullish candlestick has a long shadow, and the market closes in a hurry.

This technique is a further explanation of the 14th technique. If this super large bullish candlestick shows a long upward shadow and there is a surge of profit taking at the end of the trading day (sometimes due to sudden changes in the market), and the upward shadow exceeds the physical candlestick, or at least there is a daily increase of three or four points or more, then at the moment when the intraday closing plunge occurs, I will quickly take a heavy position and rush in. After the opening the next day, it will soar to the previous day's high or reach a new high.

Short term stock selection in volatile market conditions should be remembered

1. When investors choose stocks in volatile markets, they must follow the rules of volatile market stock selection for actual trading. Experienced investors who are good at short-term trading can earn profit by controlling their position and conducting short-term wave operations through intense consolidation in volatile trends. Inexperienced investors with poor risk control should adopt a stable investment approach, minimize the frequency of short-term wave operations, patiently wait for the trend to become clear, seize the opportunity, and earn larger and more stable investment returns.

2. The stock selection operation time should not be too long. The volatile market usually forms two types of trends: large amplitude oscillation consolidation trend and small amplitude oscillation consolidation trend. Large amplitude oscillation consolidation trend is more likely to occur in the later stage of the upward trend, which is easy to form a top range, while small amplitude oscillation consolidation trend is more likely to occur in the later stage of the downward trend, which is easy to form a bottom range. Both types of oscillation trends are signals of changing direction.

Therefore, when facing significant fluctuations, short-term trading strategies should be the main approach, and holding stocks for too long due to short-term gains and losses should be avoided to reduce the risk of stock selection investment. When facing small fluctuations, a medium to long term operation strategy can be the main approach, which not only requires short-term band operations, but also takes into account the upward trend operation strategy after the market changes.

3. The expected profit of stock selection should not be too high. There are many uncertain factors in a volatile market, and the trend of individual stocks often follows the trend of the overall market to rise and fall frequently. It is difficult to correctly grasp the operating rules of the trend of stock consolidation. When investors believe that the trend of individual stocks should consolidate and rise at this time, the actual trend of individual stocks will continue to consolidate and fall. When investors believe that the trend of individual stocks should consolidate and fall at this time, the actual trend of individual stocks will continue to consolidate and rise. Therefore, when investors choose stocks during volatile market operations, they should not expect investment profits too high. After making profits in stock selection investment, they should take profits as soon as possible and first preserve the fruits of profits.

4. There should not be too many stock selection investment varieties. When selecting stocks for investment in a volatile market, there should not be too many stock selection operation varieties. The selected stock varieties should be few but precise. The volatile market is in an unstable and uncertain future trend stage. When the volatile trend suddenly changes or encounters unexpected events that affect interest rates, if there are too many and too many stock varieties in the hands of investors at this time, it will cause them to be confused and at a loss in a short period of time, which will seriously affect their ability to adapt and lead to serious losses due to inadequate response. The position strategy should be chosen based on one's own risk tolerance.

Position control

(1) Full warehouse entry and exit, one operation for the entire warehouse, this is currently the most mainstream position strategy for ultra short positions. Concentrating firepower maximizes the efficiency of weak funds, but the disadvantage is the risk of encountering black swans and trading suspensions.

(2) Half position rolling, half position fund operation, leaving half position cash reserve, this strategy has both advantages and disadvantages. The advantage is that it relatively reduces the risk of black swan and trading suspension, but the disadvantage is that the utilization rate of funds is weakened.

(3) 333 position, in my opinion, is the best position strategy for conservative ultra short players. Attack while defending, open 30% of the position, and if you make a profit, you can open 60% of the position. The remaining 30% of the funds can be used for rolling operations. If the old position loses money the next day, the remaining 30% of the funds will not enter the market again, and then seek quick settlement of the old position.