Profit Models and Short term Operation Techniques for Retail Investors in Stocks (Part 1) Practical Skills

Following the market is the only way for retail investors to earn profits, and stop loss is the patent of retail investors. Nowadays, various regulations have rules on the position of funds and the number of stocks, especially for large shareholders who need to announce their reduction. Such main institutions cannot stop losses because there are too many chips, and generally no one can take them. Both stock funds and hybrid funds have position regulations, which are strong. A common way for institutions to handle decision-making errors or external events is to use some chips to sell high and buy low as a trading band, and then gradually sell or adjust positions for stock exchange. Some retail investors who follow the market believe that the main force has not yet shipped and sit there to accompany them to the end. This is not cost-effective because the operation of the trading band is almost entirely controlled by the main force, and it can gradually spread costs through the trading band, which is almost impossible for you to achieve. So, individual investors should fully leverage their advantage of being small and easy to turn around. When it's time to cut losses, they should firmly cut losses and come back to visit the main force after the situation improves or gains momentum. Perhaps they can also receive a generous gift.

Short term trading technique one: Do not sell until you rise, do not buy until you dive, and do not trade during sideways trading.

Selling and trading may seem simple, but when to do so, this trick reveals the secrets. This is the simplest and most fundamental principle, which is actually the most fundamental and effective. Without understanding this trick, trading ten thousand times is just a blind horse in the stock market, and one will inevitably die in the end. Before touching the plate, one must recite it silently and keep it in mind. Over time, cultivating habits is the key to turning steel into steel. This trick may seem simple, but it is actually not easy to do. For many years, I have been trading stocks because I couldn't achieve this simplest point, which resulted in countless losses. Remember it, and you will no longer chase after the rise and fall, but operate against the majority. You will become a minority and alternative in the stock market, and the few who make money in the stock market. The first two sentences are easy to understand, but the last sentence "Do not trade in sideways" is something that warrants should pay special attention to. When trading in sideways, if there is a reverse change, you will inevitably stop loss or chase after gains, both of which are not advisable. When trading sideways, the price difference is not significant. If you lack patience and trade multiple times, it will inevitably result in a loss in transaction fees.

Short term trading technique 2: Buy Yin instead of Yang, sell Yang instead of Yin, and go against the market to become a hero.

This mnemonic is somewhat similar to the first mnemonic, which teaches the principle of going against the market. The first mnemonic is for short-term trading, while the second mnemonic is for medium-term trading. That is, when buying, choose to buy when the candlestick closes at the bearish candlestick; When selling, choose to sell when the candlestick closes and the candlestick closes.

Short term trading technique three: high and low consolidation, wait a little longer

The content of this mnemonic includes the phrase "do not trade sideways" in mnemonic one, but the main meaning is that when a stock or warrant continues to rise or fall for a period of time and enters a sideways state, there is no need to sell all positions at high positions or buy all positions at low positions, because the market will change after consolidation. Therefore, during the consolidation period, it is not necessary to subjectively decide whether to open or close positions. If there is a downward trend from a high position, timely clearance of the position will not result in any losses; If it's a transition from low to high, catching up in time won't leave you empty handed.

Short term operation technique four: sideways trading at a high level and then rising again, seize the opportunity to sell quickly; Low level sideways and new low, it's a good time to buy all positions.

This mnemonic is a further concrete explanation of mnemonic three and is the best opportunity to describe mnemonic three. Stock prices and the overall market often reach new highs after high-level consolidation, and then hit new lows after low-level consolidation. Therefore, it is necessary to wait for the direction of the change to become clear before starting. The best time to sell is when the market is sideways at a high level, then turns upwards and reaches a new high; After consolidating at a low level and then changing downwards, this will be the best time to buy at full position.

Short term operation technique five: apologize before making a move, it is better to buy less than to buy more.

The principle of 'The Way is Simple' is another seemingly simple and difficult truth to follow. It's about the allocation and use of funds. You can't buy all the funds at once, then you'll have to wait and get caught. Being able to buy, buying at a low point is the true master, selling is not so important, it's just a matter of earning more or less. Before starting to buy stocks, you must admit that your buying was wrong and be prepared for the stock price to fall. After being trapped, you should be prepared for how to increase your position and make up for it at a low level, rather than what people often say about technical stop loss, which is asking you to cut meat and is all harmful nonsense. Since the establishment of the stock market, only the "pyramid buying method" has been the only eternal truth in operational techniques. The pyramid investment method is a method of buying and selling stocks in batches. When buying stocks, the more you buy, the less you buy; When selling stocks, the more you sell, the more you sell.

Short term trading technique six: Before the main stock rises, choose to go first, and after the main stock falls, choose to go back.

This trick is about how to view the operation of warrants on underlying stocks, and illustrates the linkage between warrants and underlying stocks. When the underlying stock stabilizes and has not yet risen, the warrant has already risen in advance. The reason is that there are people who have foresight and have already taken action in advance. When the underlying stock rises, the warrant accelerates its rise. When the underlying stock is in place, the warrant often has a final surge; When the underlying stocks begin to decline, warrants show a lag in adjustment, initially falling slowly and less. When the underlying stocks' adjustment slows down, warrant downgrades often accelerate to catch up. Once you master the rhythm of stocks and rights, you will have confidence in your operations.

Short term trading technique seven: 5 antennas for the pullback of the main stock, and 10 days for the warrant for now; Positive stocks are shifting towards 10 antennas, while warrants are expected to last for 20 days.

This trick is about the timing of the mid line intervention of warrants during a stock correction. Mainly regarding purchase rights. Due to the greater volatility of warrants compared to the underlying stock, when the underlying stock falls below 5, the warrant may have already fallen below 5, and sometimes below 10. However, when the underlying stock falls below 5 and rebounds towards 10, the warrant may have already fallen towards 20.     

Short term trading technique eight: 5 antenna points, may be trapped; Be careful to intervene at antenna 10.

This tip is a further explanation of the operation of tip seven, that is, when the warrant retraces to the 5th antenna, it is not easy to buy. You must look at where the underlying stock has reached. If the underlying stock has not yet reached the 5th antenna, the 5th antenna of the warrant may seem to have technical support, but in fact, the risk is extremely high, and the probability of being trapped when buying here is extremely high. When the main stock falls to the 5th level and the warrant falls to the 10th level, the risk of buying the warrant at the 10th level is also very high. Because once the main stock falls below the 5 antenna and rebounds towards the 10 antenna, the warrant will immediately fall below the 10 antenna and adjust towards the 20 antenna. I also refer to this situation as' not to be careless at the 10 antenna ', and have bought a large number of shares at the 10 antenna of the warrant several times. However, when the underlying stock suddenly fell below the 5 antenna, I was trapped in the 10 antenna of the warrant.