《Trading Survival Guide》

I. Understanding Market Temperament

1. Slow Decline Phase (Prolonged Decline)

Characteristic: Prices drop slowly like wilted cabbage, falling a bit every day but not much

Tip: Don't catch the bottom! Wait for the day of a sudden clearance sale (sharp decline)

2. Panic Sell-off Phase (Sharp Decline)

Characteristic: Prices drop like a broken egg, crashing down

Observation: Look for two signals to stop:

① No new lows for three consecutive days

② Funds begin to quietly enter the market (watch the trading volume)

3. Stabilization Phase (Stop Decline)

Verification: Like finding balance on a wobbly table

① Oscillating around the same price level for five consecutive days

② Appearance of the "Morning Star" pattern (first a big bearish candle → small doji → big bullish candle)

II. Four Steps of Trading

1. Buying Timing (like waiting for a bus)

Good Position: Falls to near previous lows + appearance of a strong bullish candle

Good Price: More than 5% lower than the average price of the past 10 days

Trial Position: Buy 1/3 first, add more once stable

2. Position Management (like watching porridge for doneness)

Normal Situation: Hold above the 5-day line

Warning Signal: Single-day increase exceeds 7% or volume suddenly doubles

Breakeven Line: After making over 10% profit, raise the stop-loss to the cost price

3. Sell Signals (like smelling something burning)

Urgent Sell: Drops below the 10-day line + doesn't recover for three days

Gradual Sell: New highs but trading volume shrinks instead

Must Sell: Sudden bad news or you start losing sleep

4. Rest Period (like letting farmland lie fallow)

Empty Position Period: Wait at least 10 trading days after selling

Observation Period: Wait for the market to calm → look for support levels → watch capital flow

Remember, the market is like a seafood market; the morning is freshest (beginning of a trend), noon is the busiest (main uptrend), and evening is when discounts are offered (downward phase). Be the smart person who chooses goods in the morning, sells in the afternoon, and watches the excitement in the evening.