It is said that every individual investor has a dream of speculative capital in their heart.
If you are an actor, you see how others perform every day, while you can only be an audience member yourself. You want to understand why others can become big stars, when to make movies, get to know the director, understand the exercise process, and so on. Review is to explore the driving forces behind the rise and fall of stocks through their data representation, accumulate experience, and summarize one's own verified stock market operation experience.
The purpose of retrospective analysis is to analyze the reasons for stock volatility and evaluate the impact of various factors.
The first step is to select stocks with significant volatility
The main reason for selecting stocks with significant fluctuations is to analyze the factors more clearly. These stocks can be started from the daily limit up chart and the Dragon and Tiger chart, selecting 5 to 10 stocks. For example, if you have selected 5 stocks on the daily limit up list, it is necessary to explore why it hit the limit up instead of other stocks? Why did it hit the daily limit up today? Why is this limit up for the same sector and not for others?
The second step is to collect information on individual stocks through various websites and software
1. Company announcements of listed companies within one week.
2. News section on the official website of a listed company within one week
3. Reports from financial media (the more authoritative, the better) within a week
4. Feedback from current employees on the company
5. Recent trends in stock prices
6. Industry coverage by financial and economic professional media
7. Data from national departments in charge and statistical bureaus.
8. Financial statements of listed companies
9. Other valuable information
Step three, identify the factors positively correlated with stock volatility
By sorting the above information in a certain order, you will find that the stock announced yesterday evening that its performance is expected to double. You will find that a certain financial media reported yesterday that the industry is increasing production capacity and prices. Firstly, you can see from the company's official website that the company is currently launching new technologies. Or perhaps the company's official website released news two days ago that they had won an important project.
You have completed a simple review process in the first three steps, but may you have looked too narrowly and collected too little information? You can take a look at the information shared by various experts on this software. They are all invited experts from the official software. Since there are so many people following, it must be valuable.
Do you think this is too simple? If you think it's that simple and use this simple operating rule to buy the next day's stocks, you probably will lose a lot. Because the stock market is not simply a conditioned reflex, then everyone becomes a stock god. But your way of thinking is starting to be correct, it's just that the information you've uncovered is still too shallow and the conclusions you've drawn are too hasty. Often, multiple factors are driving it together, and not a single factor can cause it to hit the limit up. Only after completing the fourth step can you become a master.
Step four, persist in reviewing every day
True kung fu requires a process from externalization to internalization, from quantitative change to qualitative change. At first, you only see one tree, then you see the forest, and finally you see the sky above the forest.
You persisted in analyzing for 3 days and found that the company issued a positive announcement, and the stock will rise tomorrow; You persist in analyzing for 3 months and find that in a bull market, there will be 2-3 limit up announcements for companies to sell their stocks when they rise, while other announcements are not as strong as here; You persisted in analyzing for a year and found that today the Federal Reserve raised interest rates, resulting in a net outflow of funds from the banking sector. It is useless for companies to issue positive announcements, and tomorrow they will sell for high-quality stocks. The further you go, the more you understand the temperament of the stock market and its participants. Yes, you have already acquired stock characteristics, and your returns have changed from small fluctuations to stable and steady profits.
Extended reading: These situations are the best time for bottom fishing
The candlestick pattern often helps us to make clear judgments and discern market trends, and our ultimate goal in judging market trends is to determine our operational methods. Having learned to judge forms, operation is actually a relatively simple task. By comparing and selecting, I have identified the following common candlestick patterns that can serve as a basis for us to judge when buying stocks:
1. The reversal formed by "multi head devouring"
After a wave of decline, if a large bullish candlestick "eats up" the previous bearish candlestick, we call it a "bullish devouring", which also represents that the market will turn from a downward trend to an upward trend. After a wave of decline, a large bullish candlestick wraps around the previous bearish candlestick, forming a "bullish devouring" pattern, indicating a shift in the strength of long and short positions in the market, about to turn from a decline to an increase. Investors should pay special attention to this signal
2. The foundation formed by the "hammer line"
The hammer line is a common candlestick pattern that often appears after a decline, when a candlestick with a long lower shadow is formed, indicating that the market is about to begin a reversal. The long lower shadow of this hammer line represents the strengthening of multiple forces at this point, forming a strong support level. The name of the hammer line means that the support level here is very solid and cannot be broken even with a hammer.
After experiencing a unilateral decline in the market, a "hammer line" was formed, with a long lower shadow indicating an increase in buying power, and buyers entered from here to buy at the bottom. After testing the support level at this point multiple times at the bottom, the market began to rebound. So if investment friends see a drop and then close the hammer line, then this is a good time to enter the market and buy the bottom.
3. "Low level cross star" leads the market to soar in the future
After a wave of decline, especially a breakout, investment friends will look for opportunities to buy at the bottom, and the close of a cross star line undoubtedly gives us a hint. After four consecutive negative periods, a cross shaped star line forms at a low level, indicating that the previous trend has ended and the market will enter a new stage. Closing at a low level is often a signal of a return from decline to rise. We can also see that after the cross star line, the market first oscillates at the bottom and then starts to rise. The cross shaped star pattern is quite common, but our bottom buying signal must be obtained at a low level after a continuous decline. Investors should remember this.
summarize
In general, after a major drop, a "golden pit" will be created, but how to seize the good opportunity to enter the market and prevent the tragedy of bottom fishing halfway up the mountain. The simplest way is that each candlestick expresses many meanings, and the form they form tells people about the market trend of the day and also reflects the development and changes in the future. The three forms discussed today can basically reflect the timing of bottom fishing.
