In 5 years, from 70,000 to 4.2 million, repeatedly chewing on these few phrases! First, let's look at seven short-term trading experiences:

Experience 1: Every sector has its own leader. When you see the leader moving, immediately look at the subsequent dips.

Experience 2: Pay close attention to trading volume. Buy in steps when the trading volume is low; buy all when the trading volume expands at a low level; sell all when the trading volume expands at a high level.

Experience 3: Buy when the pullback is on low volume, sell when the pullback is on high volume. Generally speaking, an increase in pullback volume indicates that the main force is offloading.

Experience 4: Buy when RSI hovers at low levels three times, sell when it hovers at high levels three times. Buy when RSI is less than 10, sell when RSI is greater than 85. If the stock price hits a new high but RSI does not, you must sell.

At the same time, KDJ can be used as a reference. In short-term trading, the W%R indicator is very important; you must pay close attention. For long-term trading, pay more attention to the TRIX indicator.

Experience 5: There is no need to distinguish between blue-chip stocks and poor-performing stocks. The dips only distinguish between strong stocks and weak stocks, as well as strong and weak forces.

Experience 6: Buy when moving averages cross upwards, sell when they cross downwards. Buy when both the 5-day and 10-day moving averages are trending up, and the stock price is above the 5-day and 10-day moving averages; do not sell as long as it does not break the 10-day moving average.

If it confirms a break below the 10-day line, you can sell when the 5-day moving average turns down. Because the 10-day moving average is very important for those in control, it represents their cost price, and they generally won't allow the stock price to drop below this line.

Experience 7: The impact of chasing rises and killing falls can sometimes be significant. The strong remain strong, the weak remain weak. For stock trading, the concept of time is very important; do not make things difficult for yourself.

When a stock continues to rise or fall, it will inevitably enter a sideways state. At this point, there is no need to sell all at a high position, nor to buy all at a low position, because after consolidation, there will inevitably be a change in trend. If it changes from high to low, clear the position in time; if it changes from low to high, chase in time.

After being trapped, you should buy more as it falls at low positions according to plan to increase your position, rather than stop-loss cutting losses. Building positions using the "pyramid buying method" is the only eternal truth of value investing.

This is the method for capital allocation. Once the buying target is determined, the issue of entry point needs to be resolved. Even what one considers the safest entry point may still create a new low.