1. Don't rush to cut losses during a morning drop; it is usually an overreaction to negative news from the previous night. You can wait for market recovery and reversal. A significant rise at the end of the session should not be blindly chased, as some major players like to test the waters and lure in buyers, often leading to a lower open the next day to suppress and gather shares.
2. Utilize trading volume effectively, as it can indicate future market trends. A sustained rise on low volume suggests strong control by major players, while a drop on low volume indicates that panic selling hasn't occurred yet, and the bottom hasn't been reached, so further declines are likely.
3. Learn to observe the structural peaks of sectors. Generally, sector trends form through five waves: the first wave generates speculative buying, the second wave involves a washout adjustment, the third wave is the main upward wave, the fourth wave is complex divergence, and the fifth wave is a pull-up for selling. During this process, the third wave has the greatest increase, followed by the first wave, and the fifth wave has the least. However, markets can be unpredictable; there may be fewer than five waves in reality, so don't memorize rigidly. If you notice that the leading stocks in a sector have surged, and the subsequent rally does not continue with the same strength as before, it is likely a signal of a peak.
4. Every time there is an acceleration phase at the top of the market, we will see a certain sector surge, triggering a reversal in the overall market. Just check whether the performances of major stocks have stopped falling and started rising, and the index will likely follow suit.
5. Being focused and specialized is the best way to start, especially for newcomers to the market. Research one trading strategy and master its techniques; this will yield much more than trying to learn multiple skills at once. Being greedy will lead to loss, and lacking proficiency can easily result in market lessons. Do not switch strategies casually; take the time to learn, and you will gradually find your footing. After achieving stable profits, then you can learn more techniques to integrate your knowledge.
Life must be experienced with ups and downs to achieve great enlightenment! As long as you don't give up, the more you try, the closer you get to success. What is truly great in life is not doing something extraordinary, but dedicating your life to doing one thing.
V God has navigated the market for many years, deeply understanding the opportunities and traps within. If your investments are not going well and you feel dissatisfied with the losses, come to me for a share of the secrets to advance!