Stock Trading: 5 Steps to Wealth Freedom

As one of the popular investment methods for the public, 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 relatively large.

Perhaps some investors believe that making money in the stock market is nothing more than buying low and selling high, and then repeating the operation, which can continuously generate profits.

This statement seems very reasonable and correct.

However, the actual situation is not the case.

Many times, they buy at a high point and sell at a low point; they fail to sell when they should, and fail to buy when they should.

The reason for 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, and they lack a reasonable plan for stop-loss and profit-taking, which is very dangerous in the stock market.

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In addition to paying attention to the constantly changing numbers on the books, 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 and restrained in the stock market, and achieve stable profits.

If you plan to stay in the stock market for the next three years and want to achieve financial freedom through stock speculation, you must read these five iron laws.

They are all practical tips for making a living from stock speculation, and it is recommended to collect them!

1.

The trend is king, follow the trend.

Once the trend is formed, there is no need for much analysis, it must be followed, follow the money, do not guess, do not predict, do not assume.

If you do not know how to judge the trend, you can look at the moving average.

The so-called moving average is to divide the market into bullish and bearish, bullish is upward, bearish is downward.

For short-term, you can look at the 5-day moving average, if it breaks through with volume, you can follow it, for medium and long-term trends, you can look at the 20-day moving average, if it breaks through with volume, you can enter, and if it breaks, you can exit.

2.

Volume and price are the only indicators that do not deceive people.

Returning to the basics and grasping the volume and price well enough can make you outperform 80% of traders.

A multiple volume breakthrough often means the intervention of funds, and there will generally be a big market in the future.

A volume of 0.5 times belongs to obvious reduction in volume, and a new high with reduced volume indicates that the main force has a high degree of control, which can rule out the possibility of the main force selling out.

In an upward trend, it is highly probable to make a profit.

If the stock hits the daily limit, and the volume ratio is less than 1, it indicates that there is still a larger room for the stock to rise, and the probability of hitting the daily limit again the next day is very high.

Of course, on the contrary, if the volume is 1.5 times and the volume is blocked at a certain resistance, it often means that the stage has reached its peak signal.

Studying volume must be combined with price, understanding the strength of both sides is the key to grasping the essence of volume and price.

3.

Concentrate on investment and learn to be empty.

The biggest pain point for retail investors: they do not know how to be empty, they replenish positions in weak markets, they have less capital and more stocks, and they hold on to losses.

If you hold more than 5 stocks in your hand, and most of them are losing money, what you need to do most at this time is to reduce the number of stocks held.

Those that break the trend (such as breaking through the 20-day moving average) should be sold first.

I have never held more than 4 stocks, even in a bull market.

4.

Stock speculation is the cashing out of cognition.

In the stock market, profits are our cognition.

Stock speculation is very simple and difficult.

The difficulty lies in continuous learning and the unity of knowledge and action.

The success of stock speculation is always a minority, so a person's success in stock speculation is based on the failure and pain of many stock friends.

The so-called "one general's success, ten thousand bones dry", so when we succeed, we must remember to do something meaningful to society!

It is because of our mutual help that society becomes better and better.

The big pattern is effective for society, and the small pattern is to support the family.

5.

Be patient, patience will hear the voice of wealth.

Patience is the most important quality and psychological quality required for investors.

Patience runs through the entire investment process.

When buying, you need to be patient and wait for a good price.

After buying, you need to be patient and not give up easily; after making a profit, you need to be patient, and under the protection of the safety cushion of extremely low cost, you need to ensure that you can calmly and rationally view the company and the market.

How can small capital grow quickly?

The operation method is actually very simple - buy after a brief pullback.

The basic principle is: after a rapid rise in the stock price, it pulls back and consolidates.

At the end of the consolidation, the stock price hits the daily limit, indicating that the consolidation is over, and this is a good time for short-term investors to follow.

Consolidation can digest and clean up the previous profit-taking positions, and the subsequent daily limit indicates that the main force is extraordinary, and there should be a larger increase in the future.

The key to actual combat operation is: the stock price operates in an upward trend, briefly pulls back and consolidates, and then rises with a daily limit.

If investors did not intervene during the pullback, they can still take the opportunity to follow up when the stock price rises with a daily limit.

After confirming the buying and selling points of individual stocks, excellent fund management is also needed to protect us and make us continue to make profits: (1) Determine the maximum loss limit for each market, such as 1%-3% of the principal, and the exact number depends on the size of the account.

For small accounts, it may not be practically feasible to limit losses to 1% of the capital.

Due to the tight stop-loss limit, market prices are influenced by various factors and fluctuate frequently up and down, which may lead to a series of losses.

There is nothing magical about establishing limits, it just helps to strengthen constraints and control losses in an objective and systematic way.

(2) The risk of each position should be equivalent to the minimum amount of capital for each trade.

Limiting risks to a certain proportion and making the acceptable risks proportional is a reasonable strategy, especially for trading.

The trading capital is determined according to each trade and is usually associated with the variability of the market, and indirectly related to the risk and profit potential of each market.

(3) Keep 2/3 as reserve.

Traders should not use more than 1/3 of the capital for speculative trading accounts as the capital for holding positions, and must keep 2/3 as reserves, holding interest, acting as a buffer layer.

If the assets in the account fall, it is necessary to look for opportunities to reduce positions to maintain the recommended 1/3 ratio.

(4) Cut your losses.

No matter when you establish a speculative trading position, you must clearly understand where your exit point (stop-loss point) is.

Experienced traders, sitting in front of the connected monitors, have a constraint point in their hearts, and they close the position immediately when they see the price reach the safe exit point.

They may not really want to give the market a stop-loss order, especially when they hold a large position, because this may be a magnet, attracting the attention of market traders to hit this stop-loss price.

The key here is restraint, not issuing a stop-loss order should not be used as an excuse for overstaying in the market, nor should it be used as an excuse for delaying the liquidation at the stop-loss point.

If the established position moves in the opposite direction from what you expected from the beginning, issuing the correct stop-loss order can allow you to exit within a reasonable loss range.

However, if the market starts to move in a direction favorable to you, it will bring paper profits to your account trading, how should you treat the stop-loss protection?

Naturally, you want to use some strategy to advance the stop-loss price, so that in the case of a market reversal, the considerable paper profits will not be turned into huge losses.

The motto here is: "Don't turn considerable profits into losses."

Finally, in stock market investment, retail investors also need to pay attention to their own risks at all times.

This risk is caused by their wrong investment decisions and behaviors, resulting in investment losses, which is a risk caused by subjective behavioral factors.

However, people can prevent, weaken and even avoid the objectively existing risks, as long as there are certain conditions, that is, the correct investment decisions of investors and the correct and effective investment behaviors.

From the actual situation, the risks of stock investment often come from the wrong decisions and wrong investment behaviors of stock investors.

The main manifestations are: (1) Wrongly judging the quality of stocks and investment returns.

(2) Blindly engaging in stock trading activities, following the wind and tide to buy and sell stocks.

(3) Wrongly judging the timing of stock trading, and missing the best timing for buying and selling stocks.

(4) Lack of intelligent investment decisions and investment skills.

(5) Lack of self-regulation in investment psychology and self-restraint in investment behavior, not being able to act according to one's ability, and not being able to stop at the right time, etc.

In short, the correct investment decisions and behaviors of investors can guide investment towards the path of success; while the wrong investment decisions and behaviors of investors can make the objectively existing risks of investment become a fact, causing actual economic losses to investment, and even making investment fall into a trap that is difficult to extricate itself from.

In order to avoid the risks brought by personal investment decision-making and behavior mistakes, the countermeasures that investors should take are: (1) Before entering the market, they should prepare and master certain stock trading knowledge, cultivate a good quality of knowledge, and adhere to the rules of stock trading.

(2) Pay attention to the changes in the stock market frequently, understand the factors of stock price changes, learn stock price analysis and prediction technology, and cultivate a good technical quality.

(3) Recognize the investment environment, correctly choose the investment method, investment object, and investment timing.

(4) Cultivate a good psychological quality, keep a cool head, not to believe rumors, not to act rashly, not to hesitate, not to be greedy, and to be able to quickly form their own correct judgment in emergencies, to ensure the correctness of decisions and actions and to achieve investment success.

At the same time, it is important to remember that different market conditions should use different techniques, and novices who are eager but inexperienced often hope to use the technical analysis they have learned to grasp all the fluctuations and market conditions.

Trading is like a game of chess, only by defeating the opponent can you win, so every trader should be cautious.

When both sides are rational, there is often not much opportunity, and there will not be a big market.

Opportunities often appear when one side is reluctant to give up even a pawn.

Trading also requires cost, and this cost will also shrink, which is something every trader must understand and be able to accept.

When you are reluctant to accept any loss, it is often the beginning of a greater loss.当然可以，不过您还没有提供需要翻译的内容。请提供您想要翻译的文本，我会帮您翻译成英文。