Top 10 Iron Law Practical Techniques for Short term Operations

Article 1: Buy stocks that have experienced a sharp decline in the overall market and have risen against the trend. This is undoubtedly like swimming at the beach, only when the tide recedes can one see who is swimming naked. There are two possibilities for the naked person: one is wearing an expensive invisibility cloak, and the other is that they really don't have money to buy swim trunks. The iron rule is that a red trend against the trend may be due to a large amount of capital resisting the top, and a sharp rise in the future may also be due to market makers luring more and selling higher. The key is to see if it compensates for the decline. Article 2: Stock decline

Article 1: Buy stocks that have experienced a sharp decline in the overall market and have risen against the trend. This is undoubtedly like swimming at the beach, only when the tide recedes can one see who is swimming naked. There are two possibilities for the naked person: one is wearing an expensive invisibility cloak, and the other is that they really don't have money to buy swim trunks. The iron rule is that a red trend against the trend may be due to a large amount of capital resisting the top, and a sharp rise in the future may also be due to market makers luring more and selling higher. The key is to see if it compensates for the decline.

Article 2: When a stock falls, it is necessary to firmly stop losses (around 4% in the short term, 10% in the medium term, and 20% in the long term). This is the inspiration gained from Chinese chess. When playing chess, one must follow the seven steps. In a passive situation, one must release the pawn to protect the car. Only by keeping the car can there be a possibility of turning the tables. The main purpose of stop loss during the Iron Law period is to avoid systemic risks, and it is not suitable for technical corrections, as small players crossing the river are better than large ones.

Article 3: Dare to buy stocks whose limit down has been greatly opened. Massive limit down, quickly lifted by large orders, should not hesitate to enter. It's like watching fireworks in the night sky, first turning green to red, and then soaring into the sky. Under huge amounts, it is generally possible to go from the limit down to the limit up, with a 20% gain on the same day. Iron laws are beautiful fireworks that quickly become fleeting clouds, and are immediately sold out during the auction the next day.

Article 4: Stocks that have experienced significant declines can all rebound. It's like riding a roller coaster, falling from the mountaintop into a valley, and due to inertia, we have to rush up a certain distance. Stocks that have suffered significant negative impacts and have been halved, regardless of how poor their fundamentals are, will have a 20% rebound. The iron rule is: one should not be deeply in love. After rebounding to a resistance platform or filling one or two gaps, one should decisively get off the car.

Article 5: Do not underestimate obscure stocks during a bull market. This is like a football match in sports competition, where strong teams may not necessarily win over weak teams, and cold situations often occur. Which dark horse in a bull market did not emerge from a niche stock? The iron rule is not to favor unpopular stocks with red cards, as this may result in being sent off.

Article 6: In the short term, we should focus on the leader. This is closely related to free range farming. When the leader runs west, don't go east. When the leader goes up the mountain, don't jump off the cliff. Catching two heads and raising them is also good. Real estate leader Vanke has hit the daily limit up, and buying Green View Real Estate may also yield significant returns. The iron rule is not to rear end the sheep, not only running slowly but also not falling behind.

Article 7: Sell when there are three consecutive bearish periods at high levels, and buy when there are three red soldiers at low levels. This is like the weather forecast you must watch every day. Dark clouds are everywhere on the Yin line, rainstorm is coming, and the sun is shining brightly on the Yang line. The iron rule is that the market maker will use this scam technique to wash away the market, and it should be screened based on the basic situation of the individual stock.

Article 8: Fast in and fast out. This is a bit like heating dishes in a microwave, putting them in and immediately taking them out after heating. If it takes too long, not only will it burn the dishes, but it will also damage the utensils used to serve them. Originally, fast forwarding and short copying resulted in being trapped for a long time, which was a losing move. Therefore, even if being trapped, one must follow the iron law and get out quickly.

Article 9: Dare to buy stocks that hit the daily limit up. Chasing the daily limit up is why it is called a suicide squad, which requires courage and adventurous spirit. This is like climbing with bare hands, which is very dangerous. If you step on it, it becomes a free fall. When you climb the mountain peak, you will see that the mountains are small and your wealth will increase rapidly. Because as long as the limit up is blocked, there will be more limit up afterwards. The iron rule is to never let go before the consecutive limit up is opened, otherwise all previous efforts will be in vain.

Article 10: Increase when rising and decrease when falling. This is similar to the principle of riding a bicycle. When going uphill, use all your strength to step on it vigorously, and you may fall to the ground with just one release of force. When going downhill, grip the brake tightly, safety comes first. The iron rule is to abandon the car once it is overturned, otherwise it will be in danger of colliding with the car.

The above ten iron rules are explained using the simplest common sense of life to illustrate complex short-term techniques. Investors are advised not to blindly apply them and should operate flexibly based on their own practical experience. In addition, it is important to remember: if there is a positive trend at the top, run away immediately; if there is a negative trend at the bottom, boldly charge forward; if there is a big drop, buy big; if there is a small drop, buy small; if there is no drop, buy not; if there is a negative trend, buy not a positive trend; if there is a positive trend, buy not in a hurry; if there is a negative trend, sell not; if there is a stop loss, do;