1、 To determine which stocks are worth supplementing and which are not, there are four types of stocks that cannot be blindly supplemented:

Contains a large number of stocks of varying sizes; Stocks allocated by strategic investors with a strong desire for monetization; Products with overvalued prices and suppressed by national industrial policies; Stocks where the trend has passed and the main market makers have withdrawn from the market. If investors have such stocks in their hands, they must switch stocks instead of blindly replenishing positions. In the future rebound market, many stocks will not be able to return to their previous highs, which must be guarded against.

2、 The stocks for replenishment must belong to two types:

1. Short term technical indicators have been fully adjusted, such as KDJ, which has completely bottomed out and formed an effective reversal technical form. This is a good opportunity for short position funds to gradually recover or replenish their positions.

2. Stocks with a clear operating rhythm of market makers and a stable medium to long-term trend. Although the overall trend of the market is not good at present, many stocks in the two cities still remain in a healthy upward channel, and stop falling when adjusted to the annual line. Any patient and careful investor can easily copy to the bottom of the band around the annual line. Once entering the early high point area, resolutely sell, and patiently wait for the stock price to fall during the rest of the time.

3、 Attention should be paid to capturing the timing when replenishing inventory.

Generally speaking, when the stock market or individual stocks bottom out, the stock price will quickly rise or even hit the limit due to the strong intervention of bottom fishing funds. As the market is in an uncertain period, the desire to profit and realize funds is strong. In the following period, investors will inevitably be suppressed by profit taking. Investors can exit when the stock price encounters obstacles or technical adjustments, patiently wait for the adjustment to end, and then buy back at low prices, sell high and buy low, and fluctuate back and forth.

4、 Rolling operations for replenishment and monetization.

Generally speaking, if the overall market or individual stocks rise in a straight line at an angle of 70 degrees or more, there will be significant technical adjustments and pressure to sell back due to excessive energy consumption from multiple parties. Investors can consider selling the same number of chips as the replenishment amount at T0 during the stock price surge. If it is certain that the rebound will continue, there is no need to adopt this method.

5、 If it falls below an important technical position, it is not advisable to immediately make up for it. It should be cleared first and then examined.

Replenishing positions is an important way for friends who are seeking self rescue. They strive to make accurate judgments and cannot make mistakes, otherwise they will suffer greater losses. Many friends who hold China Petroleum (10.81, 0.10, 0.93%) above 38 yuan not only did not have a moderate stop loss when they broke through the 30 yuan platform, but also borrowed money to replenish their positions, which is extremely blind.

6、 The varieties for replenishment should be strengthened rather than weakened, supplemented with small ones rather than large ones, and supplemented with new ones rather than old ones.

The meaning explained sequentially is that in any rebound or upward trend, the biggest opportunity belongs to strong stocks, and replenishment funds must not rush into unpopular stocks, weak stocks, or stagnant stocks with a straight line on the technical chart. Due to the continuous tightening policy affecting the stock market, it is difficult for large cap stocks to have a big market trend, and investors should focus on the idea of small cap performance. During the continuous decline of the stock market, there are numerous and huge funds trapped, and the pressure of trapped stocks is significant. This factor must be considered in the replenishment operation. As new stocks do not have such pressure, their stock prices recover faster than old stocks.

Cracking the Mystery of Stock Trading Emotions

All traders, including fund managers, start with retail investors, so when discussing trading emotions, we should also start with the trading emotions of retail investors. In fact, the so-called institutions and main players are nothing more than larger retail investors, and everyone is influenced by emotions, which can accumulate and affect the overall market trend.

Many people study technical indicators, line drawing, wave theory, and even more complex theories, but all transactions ultimately come down to human nature and psychology. It's not that technology is completely useless, but rather that on the basis of technology, it would be better to add some psychological or even philosophical elements.

The following may well reflect the psychological changes of a retail investor:

When selecting stocks - (Psychological activity: Be sure to choose a good stock this time to make up for the losses from last time)

After buying - (Psychological activity: Once the transaction is completed, wait for the money to be counted)

Holding - (Psychological activity: Ah, why didn't it run as I imagined?)

Holding - (Psychological activity: Oh, it's fallen again, should we stop loss? What if we get trapped?)

Sell stop loss - (Psychological activity: If you're really unlucky, stop loss and make sure to recoup your losses next time without touching stocks)

After selling - (Psychological activity: spitting blood, skyrocketing immediately after selling, why is it always me who gets hurt)

Buy again - (Psychological activity: This time it must be done properly, the money will be earned back soon)

The above is just a rough idea of the emotions in a failed operation, but in fact, the emotions during the trading process are much more complex than these. With the trend of the stock, everyone's expression is constantly changing. You can try to track a stock at different stages of its rise, fall, adjustment, sideways, big rise, and big fall, and take a selfie to see your expression changes.

Buffett summed it up very well. Trading emotions can only be summed up in four words: fear and greed. However, it is precisely these emotions that affect this market. Mature main players use these weaknesses of human nature to attract retail investors to follow suit, lure them to buy at all costs, and then use your fear to scare you out. This process repeatedly reduces their own costs, ultimately peeling off layers of skin from one group after another of retail investors. It sounds bloody, but the market is so cruel.

How to avoid being bloodied by the main force? We believe there are three methods to solve the mystery of stock trading emotions.

Short term action: Avoid greed

This method is suitable for short-term traders. Why be greedy when you've earned a year's worth of returns from bank wealth management in just a few trading days? Running when you make a profit is the best short-term strategy. Short term fluctuations in stock prices are subject to multiple factors that we believe cannot be controlled. Short term operations only require setting a reasonable profit target in advance and running away once achieved, without caring about how prices rise or fall later.

Zhongzuo: Strategy

This method is suitable for band traders. Mid range traders, in most cases, have already formulated operational strategies when buying a stock, such as what price to replenish the position at, what price to stop loss at, and approximately what the target is. After formulating the entry and exit plan, the only thing we need to do is to execute the plan, so that all the fluctuations in the market will not affect you.

Long term work: unmoved

This method is suitable for long-term investors, namely value investors. If your trading time is always short, don't call yourself a value investor. Value is something that takes a long time to verify. If you have conducted very detailed research on an industry or a company and believe that there will be good development in the next few years, then what you need to do is to buy and hold until you think the valuation is too high.