Stock trading is about controlling risk. If risk is well controlled, one will eventually make money. If risk is not well controlled, one will eventually lose money.
Risk control: The overall market, position, and stop loss should not be neglected.
Risk control is in place, making money is a matter of time, haste leads to failure!
The success of anyone is the result of the combination of timing, location, and people, and the same goes for stock trading. Stock trading should continue to make money (rather than making losses at times and still losing overall), and also follow the principles of timing, location, and people.
The timing in the stock market refers to what we call national policies, including macro policies, monetary policies, fiscal policies, and industrial policies.
Sometimes it is the trend of the times, and it is the inevitable trend of social development to a certain extent, such as the Internet, medicine, games, tourism, etc
Some are industries or regions that the government supports to develop preferentially for the sake of harmonious social development, such as Shenzhen, Xiong'an, environmental protection industry, the Belt and Road, etc
Everything in Tianshi will be reflected in the overall market index.
The geographical advantage in the stock market refers to the industry or region that can accommodate the changing times
For example, the current environmental protection industry is the geographical advantage arising from the time when the country wants to vigorously develop environmental protection, the the Belt and Road is the geographical advantage arising from the time when the RMB internationalization is undertaken, and Xiong'an is the geographical advantage arising from the time when the Beijing Tianjin Hebei coordinated development is undertaken.
Everything in the geographical location will be reflected on the plate
The people in the stock market are like the volume price pattern of a stock, and the essence behind the volume price pattern is capital. Without continuous buying of real money and silver, the stock price cannot rise.
Market - Sector - Individual Stocks
If a stock has a buying point, and the sector where the stock is located also shows a buying point or upward trend, and the overall market continues to buy point or trend upward, then it is possible to hold a heavy position (more than 70% of the position is a heavy position).
If a stock has a buying point and the sector where the stock is located also shows a buying point or upward trend, but the overall market does not have a buying point or downward trend, you can hold a half position or so.
If a stock has a buying point, but there is no buying point or downward trend in the sector where the stock is located, and there is no buying point or downward trend in the overall market, the position is short or light (less than 30% of the position is light).
Whether buying heavily, half or lightly, you must bring a stop loss.
Stop loss is the maximum single loss you are willing to bear.
If the stock price has risen by 10% from its recent bottom, then you have a potential loss of 10%. If it rises by 30%, the potential loss is also 30%. If it rises by 50%, the potential loss you have to bear is also 50%. If you cannot bear a 50% loss, you should not chase after the 50% increase.
A single loss should never exceed 10%, the more the better. That's why we don't chase higher, not because we don't want to rise, but because the potential risks are something we cannot or are unwilling to bear.
Stock trading is about controlling risks. If risks are well controlled, making money is a matter of time. If risks are not well controlled, losing money is a matter of time. Even if you make money now, without strict risk control awareness, you will still lose in the next round of decline.
Control risks, no luck!
How much you earn may have a component of luck, but not losing money depends not on luck, not on avoiding a big drop, but on strict risk control.
The strict control of risks comes from a full understanding of risks.
