In the A-share market, it is already a battlefield where market makers and retail investors compete, so why do retail investors suffer losses? The reason lies in three aspects: stock selection, buying points, and selling points. Every stock investor has a dream in their heart, which is to catch more limit up boards when trading stocks. So, how can we successfully and steadily catch the limit up boards? How can one maximize their own profits?
1、 Follow the Zhuang principle
(1) The most common mistake made by retail investors is that they cannot hold on to the medium and long term, and dare not stop losses in the short term. The medium and long term is the most test of a person's patience, so one must have a certain level of patience. The ultra short term and short term test determination, so one must be decisive.
(2) In a bear market, focus on the medium to long term, while in a bull market, focus on the short and ultra short term. A bull market usually occurs once every ten years, while a small market usually lasts around three years. Bear markets are the mainstream in the stock market, so friends must maintain a good attitude. Investment is a long and tortuous process, and don't think about a bull market every day, which will not be realized even after ten thousand years.
(3) The essence of stock trading lies in learning and learning. Novice investors are like new drivers, while experienced investors are like experienced drivers. Even novice drivers have not attended a driving school before starting to drive. Do you think you can drive a good car? The same principle applies. If you haven't experienced a bull market or a bear market, there won't be a big drop.
(4) The Chinese stock market is a speculative and value investing stock market. Simply put, the rise in stock prices has little to do with the company itself. Some stocks with investment value will definitely be favored by the main capital and will eventually rise.
2、 When market makers make trades, they will go through several stages: "building positions, raising prices, washing up the market, raising prices again, and finally taking profits":
Phase 1: Funds begin to slowly flow into the rectangular box, indicating that there are funds building positions. Only when the main force completes building positions and absorbs enough chips can they lay the foundation for the subsequent stages.
Phase 2: After the main force completes the establishment of positions, it begins to rise and quickly break out of its cost zone to cope with some unknown risks in the market.
The third stage: usually the most painful stage for retail investors, which is market washing. When these two situations are rare, it is also time to end the process of washing away profit taking and following trends, and the trading volume will steadily decrease during this process.
The fourth stage is to quickly rise and exit with profits. Of course, there may also be a rebound after another round of consolidation in the middle, and most retail investors will get off halfway through this process.
3、 Follow the Zhuang technique:
1. Aerial refueling
Some market makers are typical dead bulls, or in other words, they have a large amount of funds and are determined to go long beyond others' imagination. After pulling out a wave of market trends, they continue to dominate and attract funds to wash away the market. Prepare for the next wave of upward movement.
Attention: When we see that the stock price has pulled out of the first wave and is in a high-level sideways trend, we must ensure that the main force is increasing its position. Otherwise, if the main force is "building the top", chasing after it may lead to being trapped. Doing such stocks must be done in a favorable overall environment.
2. Main force in filling the pit
When there are sudden negative policies or misjudgments by the main players in the market, it often leads to a group of market makers being trapped. Due to their large amount of funds, it is relatively difficult for them to escape. When market makers compete with retail investors on the runway, the May Day main players do not have any advantages, and in the end, market makers are helplessly trapped. The future result is that the market makers will fill the hole, and for us, we can steadily obtain high profits from this hole.
Such market makers are rare and often appear when sudden bearish events lead to continuous market crashes. When trading such stocks, it is important to pay attention to building positions in batches, as the bottom is difficult to predict. The guaranteed profit of this type of stock is the height of this pit, so it is relatively stable to make money. But one must have patience. Because the time for the banker to untie is uncertain.
3. Strongly suppress and wash the market
4. [Capture Cattle and Follow Zhuang Battle Method] Shareholding
When the profit taking condition has not been met and the stop loss condition has not been met, be patient in holding stocks. Sometimes patience is more important than bull stocks!
