The nature of the market determines the success or failure of the transaction

  In long-term practice, it is found that when it is difficult to find stocks rising along the 5th line of the daily K line, the market is mostly in a state of yin and down. Rationally, one should not expect to make money in a falling market, especially in a downtrend, but rather to avoid risks with a wet or short position. The time to make money is when the market is at least sideways; the time to make big money is when it is in a strong uptrend. It is difficult to succeed if you do not know how to judge the situation.
  Most people in daily life understand the truth, but many people become confused when they enter the stock market.
  Everyone knows that when the storm is raging, you must not go out to fish. When the market’s downward trend enters the middle and late stages, it is like being in the midst of the stormy waves rolled up by the vast ocean. In such a state, should you save your life or fish first?
  In practice, it is usually only after the market index shows a significant and long-term decline before everyone can clearly see that the market is not good. When the index falls in the early stage, it is usually difficult to distinguish whether the nature of the decline is a short-term decline, a staged adjustment, or a downward trend. At this time, it is normal to enter the market, and it is excusable.
  In weather changes, when a super typhoon is formed, it is first entangled by breeze and clouds, and then gradually develops into a storm. The general nature of the short-term decline is like the wind blowing at the third and fourth levels, and it will not have much impact. When the market falls in a band, like a typhoon of magnitude 5 or 6, it will have a certain negative impact on production work. In the middle of the trend decline, the hazard will rise to the level of a typhoon of magnitude seven or eight, and the situation in the later stage is comparable to that of a typhoon of magnitude ten or above.
  There are two main reasons why some investors still want to make money even in the middle and late stages of a trend decline.
  First, in essence, it is still difficult to see the situation of the market, what stage the market is currently in, and how dangerous the current level is.
  Second, a small number of people can clearly understand the current stage and danger of the broader market, but they just can’t overcome the gambler’s mentality and enter the market. Some people think that they have the strength to resist the risk of the market; some people have a fluke mentality that they may avoid the risk.
  The former is ignorant and fearless, while the latter is aware that there are tigers in the mountains, and prefers to walk in the mountains.

  The times need strong people, but those who go against the trend will lose more and win less! Knowing that there is a lot of misfortune, he still chooses to favor the Tiger Mountain Walker. Even if he is eliminated by the market, he can live happily and die clearly. And those who are inexperienced are dead and don’t know what happened. The judgment on the nature of the falling market determines the final success or failure, which is a very important point.
  The trend of the market stage always fluctuates in up, down, and sideways. The rising state is also divided into a small rising state, a stage rise, and a medium-to-long-term rise. The small rise state refers to the short-term rise of three to five days; the stage rise state refers to the rise of the band for about three or two weeks; the medium and long-term rise state refers to the rise of at least one month or longer.
  For short-term trading, when the stock index is up and performing well for a few days, it is often the top of the short-term high. Only when the market is in a swing-up state or a mid-to-long-term up state is a real good trading opportunity.
  But the same problem is: in the rising market, which market is short-term rising, which market is medium and long-term market, it is not easy to accurately distinguish. Chasing high trades when the market is doing well also requires methods and strategies. Therefore, it is very important to master the ability to analyze and judge the nature of a rising market.
  Operating stocks is similar to the philosophy of choosing a boss. It is difficult to earn tens of millions with a millionaire, and only tens of millions or more can be earned with a billionaire. The pattern determines the achievement, which is the basic logic in terms of the performance and opportunities of the broader market.

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