- The TH model  contains at least one and a half years of trends;  it is in: “a huge convergent box”, or, “a huge ascending convergence triangle”, or, “a very Slowly ascending channel”, multi-party forces are gathering, showing a multi-party situation; (morphological theory)  In the above-mentioned patterns and trends, the later trading volume is compared with the previous trading volume. Generally speaking, the later trading The amount is gradually decreasing, the chips are well controlled, and the upper selling pressure is not large. Relatively small amount, complete easy crossing;
Without any moving averages and K-line charts of technical indicators, the most natural and essential things of stock market fluctuations can be observed. Before the big bull market starts, the slow direction is up, and the slow direction represents the true direction in the future. Considering the fundamentals of the macro, industry, and company, market foresighters and hindsighters do buying operations in different regions. When the amount of purchases accumulates to a certain level (quantitative change accumulation), and the macro and industry enter the boom During the cycle, stock prices appear to rise continuously (continuous qualitative change).
- William O’Neill’s CANSLIM law of the sea gold rush
A declining trend in later trading volume
[C = Current quarterly earnings pershare; considerable or accelerating quarterly earnings per share and sales per share] The characteristic of the big dark horse is that earnings have increased substantially, especially in the recent quarter. In the best case, earnings per share can accelerate growth. [A=Annual earningincreases; stocks with the real growth potential of annual earnings per share] Good stocks worth buying, should have an annual earnings per share growth rate of 25% to 50%, or even more than 100%, in the past 4-5 years . A good stock must have annual earnings per share growth and the growth of earnings per share in recent quarters. [N=New products, Newmanagement, Newhighs; new products, new management methods, stock price record highs] The company’s new outlook is a precursor to a surge in stock prices. It may be an important new product or service that promotes increased operating income and accelerated earnings growth; or in the past few years, the company’s top management has replaced new blood; or some incidents related to the company’s own industry have occurred. If the stock price trend can become stronger in the consolidation zone and approach or cross the consolidation ceiling upward, it is more worthwhile to invest. [S=Supply and demand; supply and demand, a large amount of demand at key points] Generally, stocks with smaller equity have more potential for stock price performance. Generally speaking, stocks with small equity have poor liquidity, and their stock prices will fluctuate sharply and tend to rise and fall. However, the most potential stocks are usually in these small and medium growth stocks. [L=Leader orlaggard; market leader stock] The status of the stock in the industry, whether it is the industry leader. Do not buy lagging stocks, do not buy sympathy stocks, and wholeheartedly seize leading stocks. In the stock market, the strong will always be strong and the weak will always be weak. Once the market decline ends, the stocks that rebound first to reach new highs are almost certainly the leading stocks. Therefore, if you don’t buy it, you can buy the leading stocks. [I=Institutionalsponsorship; institutional investors’ approval, follow the leader] The stock has a strong market maker and institutional major shareholder. The demand for stocks must be expanded to a considerable extent to stimulate the supply and demand for stocks, and the largest demand for stocks comes from large investment institutions. The stocks suitable for investors to buy should be stocks recognized by several large investment institutions with good operating performance recently. [M=Marketdirection; the market got rid of the bear market, entered the cowhide market, and even the market has moved on the right] How the market is trending and how to judge the direction of the market. You can find a group of stocks that fit the first 6 stock selection patterns, but if you misunderstand the market, about 70% to 80% of these stocks will sink and lose out. Therefore, there must be a simple and effective method to judge whether the market is in a long market or a short market.
Determine whether the market is in a long market or a short market
There are only a few stocks in the market that can meet the above principles. What investors have to do is to buy the selected stocks and set the price at which you are prepared to stop loss. Generally speaking, 7% to 8% below the purchase cost absolutely It is the bottom line of the stop loss.
- Jesse Livermore’s least resistance
Jesse Livermore’s least resistance.
- Line of least resistance Check the line of least resistance to determine the overall direction of the market. Remember, Livermore never uses the terms “bull market” and “bear market” because they will form a kind of mindset, and he believes that this kind of mindset will make thinking less flexible. The term he uses is “the line of least resistance.” He wants to see whether the line of least resistance at that time is positive, negative, or neutral. Before trading, you must check the general trend of the stock trading market at that time. Before entering the transaction, the most important thing is to determine whether the line of least resistance is consistent with your trading direction.
Fourth, the key point of market timing The key point of reversal is the right psychological moment to buy. In fact, it represents a change in trend. The key point of continuation is to confirm that the market has been adjusted once, but the same trend continues. This is a consolidation phase. It does two things: it confirms that the underlying trend has not changed; it provides a position to buy, sell or increase your existing position. But remember, you should increase your position only after breaking through the line.
Only bet on the key points of breakthrough. Those who buy in the bottoming period, adjustment period, shock period, and wash period will bear the cost of time, the cost of torture and even the cost that may never be marketed. After the bull stocks end the turbulent period, they will enter a smooth period. His trend will become faster and faster, more aggressive, and more aggressive. Some people think that the strong stocks are too high to be safe, and it is nothing more than cutting the position of the strong bulls to make mistakes. Are the weak stocks safe? Is it good? The best buying point for any stock is at the end of its bottom movement and the stock price hits a new high. Do you want the stocks with the most upside prices? So, please replace the concept of “buy on dips and sell on rallies” with the concept of “buy on rallies, sell on higher”.
Finding and waiting for the precise buying point is the most critical step for successful investment. Buying is profitable, and only profit is the source of confidence in your holdings! A good buying point will give you a good mentality, and only with a good mentality can you hold positions calmly and manage risk. If you don’t have a good start, you will see that your position is seriously threatened, and you will suffer a lot of trouble in the process of sticking to the end! Summarize and refine: 1. Integer key point; 2. Key point of extreme price changes; 3. Key point of reversal; 4. Key point of continuity; 5. Key point of trend; 6. Key point of new high and new low.
The relationship between this critical time point of Bethlehem Steel and the large fluctuations in stock price appreciation can be compared with the takeoff of an airplane. When an aircraft starts to speed up and taxi at one end of an airport runway, wait until the acceleration at the point of airflow and lifting force forms the power formation that finally lifts the weight of the aircraft, that is when the aircraft rushes towards the night, and the aircraft’s The weight is the position, the power of the engine is the money for buying, and the airflow is the strength of the rising stock price!
- Fund management Don’t lose money, don’t lose your chips. A speculator with no cash is like a store owner with no inventory. Cash is the speculator’s inventory, his lifeline, and his best friend. Without it, you can’t do business. Don’t lose your cash! General purification: 1. Buy in batches; 2. 10% stop loss; 3. Hold cash and wait patiently for all favorable conditions to appear; 4. Cut losses and let profits run; 5. Take half of profits; 6. Trade Strong stocks; 7. Stay away from news and inside information; 8. Determine the risk-return ratio and wait patiently for the big market; 9. Determine the stop loss and buy the profit; 10. Stop the loss by time; 11. Buy the leader; 12. Share high Overweight; 13. The fundamentals continue to be excellent.
- Emotion Control The principal and timing are just one bullet, one trigger. Regarding every fund invested in the capital market as the only opportunity and the only bullet, how would you trade it? Of course, if you pay a lot of small fluctuations for this, you will miss the opportunity to make no money, and there is no price of profit; but it brings the market that never misses any big fluctuations and big trends, and it can always survive intact. Down tactics. Go upstream along the river of human nature. All trading methods will fail in a certain market environment; the most important thing is to know the defects of your trading system, practice the Holy Grail and only respect the market and know yourself. Investment is the understanding of valuation, speculation is the screening of information, and trading is the understanding of K-line, reducing the number of transactions and improving the quality of transactions. Weak people like to argue with people about right and wrong, and powerful people don’t care what they say. Eat only the body of the fish, leaving the head and tail to others. Overcome the subconscious mind that wants to buy the lowest and sell the highest, and focus on a reasonable profit margin within your ability. Don’t buy at the lowest and sell at the highest. Achieving a full range of seven or eight achievements is considered a reasonable profit. The essence of the operation is to obtain all the profits you deserve after the risk assessment, and let him go if the profits are not yours!