Hegel once said when summarizing the history of philosophy: "History always goes left and right, but ultimately a unified result will emerge."
This short story makes everything clear and enlightening. If you want to succeed in the stock market, take a look at this; it will inspire you.
In ancient times of farming and weaving, there were no washing machines. Clothes were washed by hand, and in winter, washing clothes easily led to frostbite. Therefore, slightly wealthy families would hire people to wash clothes or find someone to bleach them.
Against this backdrop, a family made a living by bleaching clothes. In the continuous process of bleaching, they inadvertently invented an ointment. As long as the ointment is made in a specific way and applied to the hands, it can effectively prevent frostbite while washing clothes.
At this time, a merchant learned about this family's ointment and offered a price of 1000 taels of silver to buy the family's method. The family discussed it and thought that just washing clothes would not earn that much money in ten years. So they sold the method to the merchant.
After the merchant obtained the prescription, he improved it and packaged it as an ointment for preventing and treating frostbite. At that time, the country was about to engage in a hard battle. The merchant presented the ointment to the king and told the king that using this ointment could effectively prevent soldiers from frostbite, thus not affecting their use of weapons.
The enemy's army did not have such ointment, and ultimately the king's army achieved a great victory. The king was very pleased, appointed the merchant as an official, and rewarded him with countless treasures.
The story is finished. What do you think after reading it?
In fact, it's very simple. The same prescription can produce vastly different values in different hands. The family that washes clothes only wants to prevent frostbite, while the merchant spent 1000 taels of silver to present it to the king, reducing soldiers' casualties and ultimately winning the war, gaining far more treasures than 1000 taels of silver.
This story reflects that vision and pattern determine your height; opportunity is just a chance.
When you look down from the 30th floor, you see beautiful scenery; but when you look down from the 3rd floor, you see garbage. If a person lacks height, they only see problems; if a person lacks pattern, they only see trivial matters!
Patiently wait for the market's truly perfect trend; do not engage in predictive interventions. 'Timing is everything': buy at the right moment and sell at the right moment. Patience and seizing opportunities are the keys to successful investment.
First, let me briefly explain what the half-position rolling method is.
The essence of rolling operations is to leverage the principle of band trading. In a situation where opportunities are abundant, high selling and low buying within the day. In simple terms, it is to continuously engage in T trading to reduce the original holding chips and gradually lock in profits. So how exactly does the half-position rolling trading method operate?
In fact, it's very simple. First, we need to learn about position management. For example, if you have 300,000, only three stocks are enough, with each stock allocated about 70,000. The remaining funds can help us resist market risks, and essentially utilize T trading techniques to lower costs. I believe many friends still have a similar habit of always wanting to be fully invested. When encountering good stocks, they either have to sell previous stocks to adjust their positions or can only watch them rise helplessly. And once the market crashes, you become immobile, trapped tightly. I believe everyone has had similar experiences.
To avoid such risks, we need to consider two questions first: when is it suitable to do T, and when is it not suitable? Secondly, how to achieve simple T trading? Firstly, during fluctuations, it is suitable for T trading; however, during one-sided rises or falls, it is not suitable for T trading.
One-sided rise, especially in a bull market, should insist on holding stocks as the main strategy, rolling operations as the auxiliary principle, and maintaining the original chips without losing them. By flexibly selling high and buying low, rolling operations can strive for maximum short-term profits. At this time, one must not lose sight of the main goal, making rolling operations the focus, as this often leads to losing the most precious chips too early in the initial stage of a bull market. In a one-sided downtrend, due to the overall market and most individual stocks being in a repeated fluctuation and bottoming process, market risks often lurk beneath the surface. If you do not exit or reduce your position in time, you may end up buying more as prices fall, making it increasingly difficult to recover, until psychological collapse.
The second point is how to achieve simple T trading. Here, I will divide it into two parts. The first is the principle of T trading, which emphasizes a calm mind, not seeking to get rich quickly but to lower the cost of holding positions. So, one should not be too greedy in T trading, thinking of 3 points when the stock goes up 1 point, thinking of 5 points when it rises 3 points, and expecting it to hit the daily limit when a straight line is drawn. Such thoughts are absolutely unacceptable. Relying on feelings to trade stocks only leads to losses so severe that even your parents won't recognize you. Do not mistake temporary luck for skill.
Therefore, the most important principle of T trading is to take profits when they are available, find a buying point, and after finding the buying point, seek an opportunity to sell. This requires mastering techniques, for example, a pullback to the average price line in an upward trend is an entry opportunity, while a rebound to the average price line in a downward trend is an exit opportunity. Additionally, during fluctuations, the upper and lower bounds of the box are opportunities for high selling and low buying.
Next, let's take a look at specific T trading techniques, which can be divided into five key points:
First, enter based on the moving average at the daily level for trend-following stocks, such as the 5-day and 10-day moving averages or small-scale indicators for micro reversals. Because during strong phases, a pullback to the moving average will inevitably lead to a rebound, thus the moving average support is an excellent entry time for T trading.
Second, for intraday trading, buy low and sell high, holding a certain position of stocks. If one day the stock price is severely oversold or opens low, one can take this opportunity to enter an equal quantity of positions, and wait until it rises to a certain height to exit, thus achieving a profit from the price difference within the day.
Third, breaking through the intraday volume, when the intraday chart breaks through previous highs or critical resistance levels, buying at this moment is the most direct and stable time for T trading, and it is also one of the methods most favored by retail investors.
Fourth, watch the leading stocks to exit. Generally, when a strong stock that has surged first peaks or approaches the limit, if it is not directly locked by large orders, the following stocks in the same sector should be considered for exit, as the following sentiment is usually weaker than the leading sentiment.
Fifth, use the intraday chart to exit. For example, after a surge, if the intraday chart remains at a high level and shows signs of a pullback, we can first sell a portion. When another surge occurs and there is indecision at a high level, we can sell another portion.
Lastly, the most important point is the mindset in trading:
1. Calm, confident, happy;
2. Continuous learning and reflection;
3. Note: When experiencing consecutive profits or losses, be clear-headed, rational, not greedy, and not fearful.
Your likes and shares are my greatest recognition and support. Remember to follow Xiaoxun, as I will share more tips to help everyone improve their stock trading skills! Those who have been through the rain always want to hold an umbrella for others. Having experienced days of isolation and helplessness, seeing others suffer losses makes me empathize. I want to extend a helping hand, to compensate for that regret of wanting to be pulled up at that time, as if crossing time and space to hold an umbrella for my past self who got drenched in the rain. As the saying goes, a friend in need is a friend indeed; no matter how far apart we are, the stock market connects us, and I look forward to mutual progress with those destined to meet!
