Before a Stock Surge, Look for These 'Uptrend' Traits: Act Decisively
As one of the popular investment methods, stock investment has gained widespread recognition among investors, and investing in the stock market has become a fashion.
Investors all want to make a fortune in the stock market, but as an investment, there are gains and losses, and the proportion of losses is often quite significant.
Perhaps some investors believe that making money in the stock market is simply a matter of buying low and selling high, and then repeating the operation to continuously profit.
This statement seems very reasonable and correct.
However, the actual situation is not the case.
Many times, investors buy not at the low point but sell at the low point; they fail to sell when they should and fail to buy when they should.
The reason for the investment mistakes is that investors do not know how to grasp the buying and selling points.
In other words, investors do not have a clear concept of when to buy and when to sell, nor do they have a reasonable plan for stopping losses and taking profits, which is very dangerous in the stock market.
Advertisement
In addition to paying attention to the constantly changing numbers on the account, it is more important to pay attention to the risks and opportunities that come at any time, that is, to pay attention to the signals of buying and selling points.
Only in this way can we be adept in the stock market, maintain a balance, and achieve stable profits.
The process of understanding the stock market is the same, from losing seven times to breaking even twice and then making a profit once, it is nothing more than being focused and not greedy for various profit models.
My previous countless trading records have become waste paper; from talking about the stock market endlessly to being silent, here are the five points I have summarized for my own understanding: 1.
The essence of trading is not prediction but following.
The bottom of the trend market is not predicted but the result of our continuous following according to our own trading system.
Don't worry about what changes the market will undergo, but worry about what countermeasures you will take to respond to the market's changes.
It is meaningless to be overly entangled in the shape of the white clouds in the sky and its impact on the weather.
If you are afraid of getting wet in the rain, you just need to take an umbrella when you go out.
2.
When trading stocks, focus your financial strength and don't attack everywhere.
The plate will always rotate, and the hot spots will always change.
This is the unchanging theme of the stock market.
If you are busy tracking too many stocks and plates at the same time, you will definitely get half the result with twice the effort.
You should make the greatest effort to focus on a few plates, which will be more effective.
Through a few plates, you can have a clearer understanding of the market's movement, which is more effective than the approach of neglecting one thing for another.
3.
Only looking at the K-line and trading volume, without any moving average, index auxiliary trading, is indeed the highest realm of a stock market trading master's view, but ordinary traders do not need to blindly imitate.
As long as you can make money, set up the trading software as convenient as possible.
If a person with poor skills insists on pursuing this realm, it is tantamount to self-abandonment and seeking death.
4.
When the trend exceeds your cognition, leave the market!
This is not easy to do.
Many times, you have lost your sense of the stock's trend, and it always exceeds your expectations.
You can't figure out whether it is in an upward or downward trend.
At this time, your best choice is to leave the market and then choose a stock that you can understand a little bit.
5.
Any stock trading operation should not be decided in a flash of lightning, you need enough thinking time, and you need a clear basis for entering and leaving.
So that once the later trend is contrary to your operation intention, you can not feel regret.
At the same time, if you have too many stocks in hand, it is easy to distract attention and lose the sense of a stock.
Focus on three to five stocks, and you will be better able to seize the opportunity.
If your level is still at the stage of fishing by casting a net, it is estimated that there will not be much gain.
A wave of the main rise is not easy to produce, and there will always be some signs on the plate.
Therefore, an effective signal is a confirmation signal, its success rate is relatively high, and the variables are relatively small.
Therefore, there is no need for further verification, and this signal can be used to judge the future trend of the market.
The main rise signal can be a single large Yang line, or it can be composed of multiple K-lines or a technical pattern.
The necessary conditions for the main rise are the requirements that must be met when any wave of the main rise starts.
If any one of these conditions is missing, the main rise cannot occur or cannot continue to develop effectively.
According to the author's many years of actual plate experience, the necessary conditions for effective signals include two aspects: one is the signal breakthrough condition; the other is the signal continuation condition.
First, the main rise breakthrough signal must have three conditions at the same time; (1) The principle of amplitude.
It is mainly used to identify the breakthrough of long-term resistance positions.
This principle requires that the closing price crosses the resistance position by at least 3%.
Only when this amplitude is reached can it be considered effective, otherwise it is invalid.
For example, the important resistance position of a certain stock is at the level of 10 yuan.
If the closing price on that day is above the level of 10.30 yuan, then the upward breakthrough resistance position is established.
This principle is actually a filter on the price.
(2) The principle of time.
Once the stock price breaks through the resistance position upwards, its closing price must be above the resistance position for three consecutive days.
If it only lasts for one or two days, the breakthrough is invalid.
For example, if the resistance position is at the position of 10 yuan, then the stock price must be closed above 10.30 yuan for three consecutive days before it can be considered a valid breakthrough.
This principle is actually a filter in time.
(3) The principle of volume.
When the stock price breaks through the resistance position upwards, the trading volume must actively cooperate, indicating that a large amount of funds have flowed into the market, and such a breakthrough can be effective.
Moreover, the trading volume after the breakthrough should continue to increase, not just a pulse increase for one or two days.
The increase in volume without volume or intermittent volume is a short-term crossing, and does not constitute an effective breakthrough.
However, if the trading volume is particularly large and the stock price only rises slightly or slightly, it also does not conform to the principle of volume.
Second, the main rise continuation signal, the continuation signal is also called the strengthening signal, which means that after the main rise signal appears, the stock price can continue to rise, and the bullish momentum is vigorous, like a bamboo shoot after a rain, without giving the short side any breathing opportunity.
The main rise continuation signal usually needs to meet three conditions: (1) The next day after the main rise signal must close with an upward Yang line.
(2) Except for the limit up sale, the trading volume must continue to increase, and the price and volume rise together.
(3) The 5-day, 10-day, and 30-day moving averages must present a bullish arrangement to support the stock price rise.
If a stock appears in the "continuous Yang golden pillar" situation, it often indicates that there will be a big rise.
First, we need to judge the strength and weakness of the main capital strength.
Generally, we can predict the strength and weakness of the main capital strength by the way the main capital washes the plate.
For example, the rising washing plate technique is often a very strong washing plate technique.
This is a technique that uses space to exchange time.
Generally, it first rises the stock price to wash out the previous profit plate and some unsteady retail investors.
In this process, it also reflects the main capital's determination to push up the stock price.
Often in the trend, there is a "continuous Yang golden pillar" trend.
After the washing is over, the stock price will basically rise rapidly in the next short period.
Therefore, in our daily plate viewing process, once we see such a trend of individual stocks, we must remember to add them to the favorites and buy them in time, and then wait for the main capital to lift.
So, what exactly is the trend of "continuous Yang golden pillar" on the daily line?
The so-called "continuous Yang golden pillar" is simply that the stock price appears in the process of operation after a large Yang line with a volume increase, and the increase of this large Yang line needs to exceed 5 points, and in the next three consecutive trading days, it closes with a Yang line, and these three Yang lines all need to be higher than the closing price of the previous large Yang line, and the closing price of the Yang line is higher than the previous day, and at the same time, the trading volume is not only not increased, but also appears to be reduced.
Here, it indicates that the main capital is not out, but is shaking and storing momentum, waiting to wash out the unsteady chips and further push up the stock price to rise.
At this time, we can choose to enter the market.
Although the "continuous Yang golden pillar" looks and understands relatively simple, we still need to pay attention to several details when we actually buy and sell stocks: 1.
After the stock price appears in the middle and large Yang rise, it needs to continue to close with a Yang line for three consecutive days or more, and at this time, the short-term moving average also needs to be in a bullish trend upward.
2.
When the stock price appears in the large Yang line, the trading volume needs to appear a large increase, but the trading volume gradually reduces in the next three days, and the closing price does not fall below the entity part of the middle and large Yang line, at this time, you can choose to enter the market.
Finally, as investors, we must always remember that the biggest part of a stock's trend often occurs in the last two weeks or a longer period of this trend.
Therefore, speculators must be patient, must be ready to go, and must wait.
Do not buy at the lowest price, nor sell at the highest price.
Buy at the right time and sell at the right time.
But remember, when using key points to predict the trend, if this stock does not perform as it should after passing the key point, it is an important danger signal that needs immediate attention.
Immature persimmons all have astringency, and there are many ways to remove the astringency of persimmons, but no matter which method you take, it takes a period of time to mature.
If you open it before a certain time, you can't make the persimmon mature and remove the astringency.
If you are impatient and impatient, and often open it to take a look when the persimmon is not mature, and even bite it from time to time to see, then you will not be able to enjoy the taste of mature sweet persimmons.
To do anything, it takes some time to mature naturally.
If you are too impatient and impatient and unwilling to wait, you will "haste makes waste" and often suffer destructive obstacles.
Therefore, any real successful person may have different characteristics, but they must have a common quality, that is, they all have extraordinary patience.
Have you seen how lions hunt?
It patiently waits for the prey, and only when the time and the chance of winning are suitable, it jumps out from the grass.
A successful trader has the same characteristics, and he will never fry for frying.
He patiently waits for the right opportunity and then takes action.
Soros attributes his own secret of success to "amazing patience", to "patiently waiting for the opportunity, patiently waiting for the external environment to change completely reflected in the price change".As the trading time increases, every trader will gradually realize that behind the price fluctuations is not just the exchange of opponents' chips, but also the entanglement of their own emotions and rationality.
This entanglement stems more from the desire to learn from others, yet failing to execute like them, and the wish to trust oneself, only to be disturbed by external fluctuations.
Ultimately, the market always fluctuates at its own pace, but traders will always miss some opportunities that should have been theirs.
In the end, one will feel that there is no such thing as defeating the market.
In fact, what traders should really overcome is themselves.