Summarizing the investment experiences of several successful professional investors, the author found that although they follow different trading rules, there are three principles that everyone agrees on: firstly, they have their own familiar and effective trading methods, especially a set of effective arbitrage methods to deal with the main stocks; Secondly, it is rational to "know and act in one". Do not remain clear headed before the opening, but after looking at the two minute candlestick chart, your blood will immediately surge and follow the wrong feeling; The third is the need for resilient patience and the ability to analyze the gains and losses of major opponents. However, many investors are not lacking in correct judgment at the beginning, but once their opponents play a few inevitable tricks, they immediately fall for it. The above three principles cannot be easily learned. The following is a summary of the professional courses I have provided for some institutions to train operators:
1、 Classic choices for large cap stocks
Banker is a concept introduced from gambling, and those who have the ability to make both profits and losses are called "banker". Their main gambling tool is banker stocks. Although there are provisions in securities laws of various countries that restrict the use of shares as shares, the existence of shares as shares is still a common phenomenon in both mature and emerging markets. Due to the significant advantage of market makers in comprehensive factors, their heavily held stocks often have a lot of room for fluctuations. If investors can immediately discover and understand the market makers' magic tricks at low levels, they will gain high profits far exceeding the average profit.
Preliminary methods for selecting large cap stocks:
1. Choose the top stocks on the daily price chart. 2. Choose the top stocks in the daily earthquake amplitude ranking. 3. Choose from the front spear before entering the first volume ratio. 4. Choose stocks with OBV technical indicators at historically high levels. 5. After encountering negative news, quickly exit the high volume bullish stocks and choose. 6. Choose from small shares with both total share capital and circulating shares. 7. Choose stocks with good fundamentals but no distribution history. 8. Choose from stocks with obvious follow-up major themes.
The main means of verifying large cap stocks are:
1. Having independent market trends, individual stock movements do not follow the fluctuations of the overall market. 2. In the downward trend of the overall market, the resilience of individual stocks is significantly better than that of the overall market. 3. There are many bearish candlesticks, bullish candlesticks, and long shadows above and below, but the absolute stock price fluctuation is not significant. 4. The news coverage of individual stocks is more sensitive than other stocks in the same sector. 5. In the first stage of market launch, the performance is weaker than the overall market. 6. There are consecutive orders for 100000 shares with low trading volume. 7. In history, there have been consecutive large trading volumes that went against the market trend. 8. The stock market often experiences abnormal changes in the way it hits the market.
The basis for all the above conditions is that the stock price is in the low range of the K-line chart.
2、 Follow the classic of large cap stocks
In the first item above, the main focus is on observation methods. When using these methods to discover large cap stocks, the main operation is to achieve a "unity of knowledge and action". Firstly, we need to further understand the essence of the market makers. We need to recognize that most market makers have the following characteristics: omnivorous, cunning, cruel, scammer, robber, and the cost of funds.
Overview of the operational characteristics of Dazhuang stocks:
The entire operation mode of Dazhuang stocks is collection, promotion, and distribution, which takes place between three to ten months. Among them, collection and distribution occupy the main time, while the promotion time only accounts for a small part.