Yesterday I said I wanted to talk about some practical stuff, and asked everyone to ask questions. I received a few, but they were all vague and broad, so I will give a rough answer, in the order I feel like.
Regarding selling points, it can be divided into three situations:
1. Long take profit point
2. Long stop loss point
3. Short position
Each of the three situations can be further subdivided into several situations, and each situation can be further subdivided. It would take more than three to five thousand words to fully explain them.
I made a rough mind map. It is as follows:
Considering that the market is bullish now, most people are going long. Here we will focus on the profit stop point for going long.
There are two types of stop-profit: left and right. I talked about the difference between left and right in a post last month. If you still don’t understand, please read it. I won’t repeat it here. ——There is a function to search for content. It’s a waste not to use it.
Let me tell you the one I use most often.
The first is to stop profit with psychological expectation, that is, when you feel that you have made enough money, you should run. For example, we often hear about doubling the principal, which is this way of playing. This is completely based on personal psychological expectations and cannot be expressed in words.
The second is to stop profit based on sentiment. When the market sentiment is not right and too enthusiastic, it is generally a good selling point. There is a saying in the circle, "Showing orders means stop profit". This is not metaphysics. The principle behind it is that when the market is overly enthusiastic, there are no new buyers behind, and the main force will take the opportunity to ship. A recent example is the early morning of the 7th. Audi rushed very hard that night. I felt that the sentiment was too hot at around 64, and there was pressure from the previous high, so I sold half of the ordi, as shown in the figure below.
At that time, I said, "I hope I don't sell it out," but as soon as I closed my eyes, someone in the comment section said that I sold it out.
But when I woke up, the price of ordi had dropped to 55, and even dropped to 49 at one point.
Did you sell it at a high price? It just wasn’t sold at the highest point.
The third is to stop profit at key positions. These key positions are generally resistance levels. For example, as mentioned in the post yesterday afternoon, you can stop profit near pyth0.5.
why?
The following figure:
0.5 is close to the upper edge of the channel and is the high point of the previous round of rise, which is a key position.
The K-line at this position does not look good (this is another analysis method), so it is necessary to take appropriate profit stops.
Now pyth is 0.46, and it fell 8% after taking profit. The short-term profit taking is correct.
The fourth is to take profit on the right side based on some technical changes.
There are no good recent examples of this type of selling, but we can use the mid-year comp market as an example.
Suppose you are very capable and bought the comp at around 20, and you plan to expand the scale and not stop profiting until the trend is over.
Then there are 3 opportunities to take profit. As shown in the following figure:
That’s about it for now. It will get complicated if I continue.
Mainly because it's late and I want to take a shower. Love you guys, quack~
