The way to trade is simple and patient
1. Seeing clearly: See trends and other big money.
2. Endure: Speak and laugh to guide the situation.
3. Ruthless: If you don't bear it, it's reckless.
4. Laid-back and comfortable: People who can treat the loneliness of ordinary people into laid-back people are immortals.
5. Peace of mind: Nurturing emptiness is personal knowledge.
6. Calm atmosphere: Relaxed, quiet, intelligent, and deep. This is the ability to do big things.
7. Having talent and being slow is for great talent; being intelligent and energetic is for being wise.
Let me say a few words before opening the article:
Mentality first, technology second, capital third. Stunning skills are in place, and money has been scattered and returned. For experts, capital is not a problem; for doing nothing, nothing, doing nothing, doing nothing, people enjoy a leisurely life in the stock market, yet they enjoy the feeling of being immortal in the world.
Being laid-back and busy is the difference between a master and a master. Experts master technology, meticulous logic, and strict thinking. They jump up and down with the ups and downs of the market and market information. They live like a monkey. No matter how skilled they are, they will inevitably not be left behind, and the fun in life is completely lost.
Masters or grandmasters understand Zen and discard conventional theories and opinions, transcend fundamentals and technology, break out of the entanglement of information, technology, and fluctuations, transcend the entanglement of information, technology, and fluctuations. They are transcendent, enjoy a rich, profitable and quiet life, and leisurely see Nanshan Mountain.
The realm of stock trading: The story of the three Bian Magpie brothers.
Wei Wenwang asked the famous doctor Bian Magpie: “All three of your brothers are good at medicine. Which one is the best?
Bian Magpie answered: The eldest brother is the best, followed by the middle brother, and I am the worst.
Wen Wang asked again: So why are you the most famous.
Bian Que answered: My eldest brother treated the disease before the onset of the condition. Since the average person doesn't know that he can eradicate the cause in advance, his fame cannot spread.
Brother Zhong's illness was treated when his condition began. The average person thinks he can only cure minor illnesses, so his fame only extends to his hometown. And I'm treating the disease when the condition is serious. The average person has seen me perform major surgeries such as putting a needle on my meridian and putting medicine on my skin, so they think my medical skills are highly skilled, and my fame spread all over the country because of this.”
Who should the three Bian Magpie brothers appreciate? This is a difficult problem because they study medicine. However, when it comes to the capital market, this kind of entanglement doesn't exist; making lots of money is the right path. Naturally, Big Brother Bian Magpie is the cleverest. To trade stocks, you need to learn from Bian Magpie's elder brother. For doing nothing, doing nothing, and being tasteless, enjoy wealth, peace, and tranquility in a leisurely and comfortable environment. Instead of hustling around, hop on and off.
This post tells you how to be a big brother in the stock market. It goes beyond capital, information, value investment, and technical analysis, and directly touches the deepest essence of the market. Next, I'll cut to the point, give you some guidance, and let you see the quiet parts of the curved path through the guide.
1. Seeing clearly: seeing trends and other big money
The reason truth is difficult for people to grasp is not because it is too difficult, but because it is too simple.
Stock trading people are all smart people. They can't make or lose money, not because everyone is too stupid, but because everyone is too smart. There has always been money from stupid people and smart people in the stock market. Perhaps people are not convinced, let alone believe this kind of thing exists.
Let's take a look at an example:
Author of “Short-Term Trading Tips”: Larry Williams's method for making money is the “sit and wait” secret. He said that he had the urge to enter the market many times, but every impulse made him lose money, and he lost his heart. Once again, he felt safe using the original method to make money. He said that his profits of one million US dollars are all waiting; that's it, waiting.
In “Memoirs of a Stock Master”, Jesse Livermore experienced three ups and downs in his life. As one of the greatest investors in the history of American trading, he eventually chose to commit suicide due to depression, believing that his life was a failure. He actually earned money by pretending to be dead, and controlled his desire and impulse to trade through sleep, thus avoiding failure and exploiting profits. As a result, he succeeded. Unfortunately, he was still too smart to control his impulse to trade, and in the end, he created a tragedy for himself.
Where's the mystery?
Westerners don't know this, can't understand it, and can't understand it. It's not surprising, but as a Chinese, you can't just ignore it, because the West doesn't have a culture that guides people out of their way of getting lost, yet our China has a natural cultural foundation of ingenuity, great wisdom, loud noises, and invisible elephants.
“A sergeant sings and acts diligently; if a sergeant sings, if he survives or dies; if a corporal sinks and laughs loudly, it is not enough not to laugh.”
People with superior intelligence can understand the truth and be happy to put it into practice all at once; moderately intelligent people will believe and doubt the truth; lower-level idiots always think they are self-righteous and smart. Not only can they not understand the truth, but they also laugh out loud. Therefore, Laozi told everyone the criteria for discerning the truth: most people would disdain it when they read it; what makes them laugh out loud is the truth.
Because idiots are always in the majority, it's not enough to be big enough. We Chinese have a unique advantage. I hope the majority of shareholders can carefully study the culture of our ancestors and join the ranks of a few wise people, whether they are countries** or respect their ancestors. Anyway, learning these things will make your life better.
Stock trading is a very simple matter, but I said it all at once. Everyone is bound to scorn them and disdain them; it is a waste of effort to make many people who could have been freed struggle and be inexorable in the middle of a sea of stocks; it is actually contrary to the Western Patriarch's mercy purpose of popularizing all living beings.
The secret is: you can only make money if the market rises.
You might think this is nonsense, but this is the truth; because it's so simple, people ignore this truth and think it's nonsense.
You can only make money when the market rises. That is to say, when the market is in a declining trend, honestly short your positions, don't play against the market, and can't get along with your own money.
You can only make money when the market rises. In other words, don't mess around in times of turmoil and consolidation; if you don't make any effort to please yourself, why bother?
You can only make money when the market rises. That is, follow up when the market is on the rise, then wait, sleep, or pretend to die until major changes occur.
The transaction requires a handling fee. If you do it one more time, the handling fee will be sent if you do more.
Once a trend is formed, the battle between long and short is already divided. It will not be easy to change for a while. The trend will continue, and at the same time, it will take time to continue. Time is space, and we are willing to spend time and wait until profit margins expand.
It's hard for people who haven't tasted the sweetness of waiting to experience the mystery of being relaxed.
At some point, when the entanglement in the stock market turns dizzy, tired, and suffering is unspeakable, give yourself a vacation. Imagine how comfortable it would be if you set your sights on a direction from two weeks to a month and didn't care how fluctuating in the middle would be.
Why is it tormented? Because every fluctuation determines your fate, your heart always presses a stone, and the pain is endless.
Actually, if the market is on the rise, it will naturally rise, and it is normal that there will be fluctuations in the meantime; if you don't get entangled in these details, you will be relieved.
If you are entangled in fluctuations, then every move in the market will determine your mood, so can you bear the ups and downs of your mood? Can't you get lost? It's clearly an upward trend. A small downward fluctuation makes you feel like a disaster is imminent. Not to mention the mental torment; if you don't stay at the bottom for a while, cut the warehouse, lose money, and lose money, your heart is even more torn.
How to Relieve: Don't Let Fluctuations Affect Your Mood
Follow the trend. A wave of trends is formed, and the trend will not end until it runs to the end. You can safely wait boldly. If you only care about trends and ignore fluctuations, you will reach the other side of entanglement to the other side of relaxation.
As soon as the order goes down, what you need to eat is a wave of trends. That kind of confidence is such a comfort to the heart.
As soon as you go down, what you see is the long term. It doesn't care about small fluctuations, so there are no internal entanglements and torment, and there are no ups and downs in the heart, and how calm it will be.
As soon as the order goes down, what you eat is a big profit. It is also easy to handle large sums of money. It is calm and atmospheric, graceful and luxurious. This is the style of doing big things and making a lot of money.
Once ordered, through the phenomenon of fluctuation, I have grasped the essence of the trend, stopped suffering from losses, surpassed fluctuations, and controlled the trend. The market has become my own good friend. This is wisdom and blessing.
No wind is leaving for the ship without direction
If a person doesn't know which way he wants to sail, then no wind is a smooth wind. --Seneca's “A Brief Book of Morality”
It's also appropriate to use this phrase in the stock market - if one can't see the trend clearly, then any fluctuation is a torment.
The root of all mentality problems is here, and the solution to all mentality problems is also here.
On the contrary, if you can clearly see the nature of the trend, then any fluctuation is your friend. In the middle of the upward channel, you lose sight of the trend, follow the trend in the macro, and buck the trend at the micro level, thus maximizing profits. In this way, fluctuations have become my friend and a source of happiness for myself.
Adherence to “simplicity” is the greatest achievement of all time.
There is an enlightening saying in psychology: people with a simple heart always need complicated embellishments and fillings, while people with complex hearts have special paranoid requirements for simplicity.
The path is simple, and adhering to simplicity is not something that the smartest people cannot do.
2. Endurance: Talking and Laughing, Guiding the Situation
The common characteristic of people who make money in the stock market is: they can endure
It's not difficult to see the trend clearly. A three-year-old child can also know the upward and downward trends, but traders who have experienced hundreds of battles may not be able to stand it.
Williams relied on foolishness and pretended to die; Nicolas Davas simply slept when he couldn't get through; Livermore was known as the greatest trader, and he eventually chose to commit suicide after going bankrupt five times because he couldn't stand it. Buffett became a stock god. What is superior to them is not technology or theory, but the three words “endure.”
It is also difficult for these experts and celebrities in the investment industry to survive. It can be seen how rare the word “patience” is.
The first point explains the essence of grasping trends through the phenomenon of fluctuations. The emphasis on this point is how to stick to the trend. This is the hardest part of the difficulties. It is so difficult that even genius traders can't stand it. They must use the method of pretending to sleep and force themselves not to watch the market to make themselves stick.
Looks like Buffett doesn't watch the market either! Because those fluctuations don't affect the nature of the trend, they affect the ups and downs of mood and interfere with one's judgment on the trend. If you can't stand it, it will be a big mistake.
So be sure, definitely, and remember this principle: endure. Otherwise the trend has nothing to do with you.
After understanding the nature of the trend and being determined to withstand the interference of fluctuations, the next step is to handle the selection of trading points. This is pointing the flow.
How are the key points of trading determined. Here are some tips for investing in genius:
1. Williams's only way to earn one million dollars: follow up when an incident breaks out, set a stop-loss wait, and pretend to die for 3 days, 5 days, and 2 weeks... Wait until the last minute to leave.
2. Nicolas Davas is regarded as the retail king for his monograph “How Do I Earn 2 Million Yuan in the Stock Market”. In fact, he has also been “eating fresh food all over the world” all his life. He is the founder of “box theory.”
He found that the combination of price and increased trading volume is a powerful source of demand driving stocks forward. In this trend, stocks will move in a series of structures he called boxes. For example, if a stock will jump between the highest point and the lowest point (such as $35 and $40), then this stock will form a 35/40 box.
If the stock price exceeds the peak position of $40 in the example above, especially as trading volume increases, he will buy the stock. This sign proved to him that stocks are ready to move like the next level of boxes and have enough demand to rise in price. If it falls to the bottom of the box, he will immediately throw out his shares. The “box theory” of stocks is a short-term operation magic weapon.
Everyone should keep in mind that this retail investor only did this trick from beginning to end. This move made him invincible. If everyone used his trick, wouldn't it be possible to get nine out of ten and be stable? The same pattern of behavior gets the same results; as long as the pattern of behavior of Dawas is copied, then the result of Dawas must be obtained.
His biggest difficulty was to make judgments that were no longer critical like Williams, but in resisting the control of the impulse to trade.
3. Key points of Livermore.
Livermore only operates stocks when the market is rising, and selects leaders (leading sectors, individual stocks) in the upward trend. His operations include three important concepts: normal retracement, danger signals, and key points.
The undrastic pullbacks are all normal retractions. He emphasized that this kind of pullback is completely normal. Never be afraid of this normal action. However, once there is a sharp retracement, then you have to be very afraid. This is a red flag; another danger sign is that the market pulls back to a price level, then rushes back to a price close to the original price level when it continues to rise, then retreats again. Normal retracement and danger signs are actually grasping qualitative and quantitative changes, resisting fluctuations, and maintaining trends.
Key point: As an example, he said that if the market rises from 40 to 45, then pulls back to within the upper and lower levels of the 40 price level and continues to rise, then it can be followed up at this point. This is the key point.
This critical point is also stable by taking ten and nine.
Since this post isn't about technology, I'm just going to introduce it in such a no-nonsense manner. That's enough.
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As a successful investor that retail investors can learn from, Davas' growth experience is particularly useful. After three stages of transformation, he became an expert stock trader.
Naturally, the first stage of stock trading is to focus on stocks recommended by people around you. Like many newbies, this random system doesn't have good results. Nicolas Davas fell into a strange circle of frequent trading. He once held 30 stocks, had a very poor record, and lost an average of $100 a week
After that, Davas began studying the information himself. Start subscribing to stock market information, pay attention to financial information, and enter the second stage of stock trading.
At this stage, he began blindly buying stocks recommended by experts, and lost quite a bit of money.
To better understand exchange language and Wall Street rhetoric, Davas began to read as many books as he could about the stock market and investments. He once said that he has read over 200 books on the stock market and great speculators.
He decided to act according to the market's own behavior and began to carefully study price changes between stocks. He looked for patterns, price behavior, and how they actually performed by studying past stock market guides and price charts.
He continued to use a combination of fundamental analysis and technical analysis, and later formed his “box theory.” Thus he entered the third stage of his stock trading, the stage of forming his own stock trading model.
3. Ruthless: If you don't bear it, it's reckless
The decision to enter the stock market is difficult, the decision to stay in the middle is difficult, and the decision to leave the market is difficult. If it's difficult, it's hard to drag the mud and carry water; the solution is to be patient by gnawing your teeth and being patient.
Tired of being covered with mud and water, the root of the disease is in love; it is as good as it gets round; it's cheaper in a naiji.
Stock trading is about abandoning an impetuous and greedy mentality and cultivating patience and decisiveness. This is not only a process of improving the level of operation, but also a process of cultivating one's mind and changing one's temperament.
When there is a signal to open a position, you must decisively open a position as soon as there is a signal to open a position, and when there is a major signal, you must dare to take a heavy position. This requires being tough on yourself; otherwise, you will miss out on the opportunity, and it is too late to regret it.
It is very important and difficult to get used to “retreat normally” in the middle. It is also very important and very difficult to achieve. International experts and speculators know how important this is, but they are also often upset by this. Sometimes they are unable to overcome their inner impulses, and they can only pretend to die, sleep, or be stupid like some people to force themselves to abide by the principle of not acting recklessly.
Halfway holding means grasping trends. Just like riding a horse, if you always get off and chase horses, not only will you not enjoy riding a horse along the way, you will also lose a lot of energy and waste a lot of manpower, material resources, and financial resources. You should cultivate the quality of bravery and have a big heart. You should firmly believe that you are an excellent knight who can handle a reed horse. Trust yourself to the reins, and let the reins run at will, and not interfere as long as you don't follow your own principles. In this way, you can control the trend rather than be driven by the trend.
What we want is to control trends, ride horses, not race with horses, be ridden by trends, and be fooled by fluctuations.
Halfway holding is the most important and hardest. You have to treat a crying baby as hard as a parent in exchange for the right results and the happiness you crave.
Leaving the market when an exit signal appears, and stopping loss when a stop-loss signal appears also requires the courage to break a knife. It's not difficult to have wisdom; it's not easy to have courage. Stock trading is not only an exercise of wisdom, but also a cultivation of strong inner qualities.
Cultivating courage and heart is far more important than intellectual education and knowledge learning. Stock trading requires not only professional knowledge and mature theory, but also the demeanor and feelings of a man who is at the top of his position. The stock market is a university. This school refines talents, shapes character, brings wealth, and creates miracles.
If “seeing far” means cultivating far-sighted foresight and wisdom, practice the insight and literacy to do big things. Well, “being able to hold back” means cultivating a calm, graceful mentality, and practicing the style of a general who is in a relaxed manner; “being able to be tough” means cultivating the quality of firm and decisive will, and developing a grand sense of courage and a broad mind.
It is not only an improvement in technology, but also an improvement in the quality of life, the sublimation of personal quality, the quality of life, and the depth of life that is extraordinary.
4. Laid-back and comfortable: People who can treat the loneliness of ordinary people into laid-back people are immortals.
Stock trading is like a hunter looking for prey, seizing the moment to aim, and shoot. Most of the time spent waiting is, and pulling the trigger is only a moment. The actions required to trade stocks are simply knocking on the keyboard a few times; the rest is just watching and waiting.
If this kind of waiting is painful, then it is loneliness; if it is peaceful and happy, it is laid-back.
Only by grasping the key can we take the initiative. Only by grasping the initiative can we make waiting easy and comfortable. In order to avoid falling into passive torment, you need to know what the key things are.
5. Peace of mind: Nurturing emptiness is personal knowledge.
Develop a mindset of not being afraid of a “normal retreat,” and at the same time develop a habit of being wary of “red flags.” Once you have achieved these two points, you can feel at ease.
A “normal retracement” is a normal fluctuation that does not damage the trend, and a “danger signal” is a sharp change that poses a threat to the trend. The former requires that the order be held unchanged, while the latter requires leaving the market to wait and see. This quiet treatment is the key to determining whether the state of mind can be at peace.
The mentality depends on grasping “critical points” and determining “normal withdrawal” and “danger signs.”
6. Calm atmosphere: Relaxed, quiet, intelligent, and deep. This is the ability to do big things.
What is calm? Calm is a calm state of mind and a stable mood, without the worries of impatience, unease, and ups and downs.
What is the atmosphere? Atmosphere is a long-term vision and grand handwriting, not cowardly and wretched, quick to make quick gains.
The trend is stable. This is the theoretical basis for stabilizing the mentality. This is extremely important. Not only does it have technical significance, but more importantly, it is the significance of mentality cultivation.
The opposite side of a trend is fluctuation. Fluctuations are not stable, let alone uncertain. If the mood is determined by fluctuations, then the suffering will begin, and you won't be able to get rid of it even if you want to get rid of it.
This is where the deciding factor is whether you are laughing and using the military, or if you are in a state of anxiety.
Time and space complement each other. You can only have a lot of space for a long time; if you want to enjoy big profits, you must have a sufficient length of time; if you want to be ambitious, you must have a long-term vision; only with a long-term vision can you write big. Atmosphere means that the space-time pattern is large, and the space-time pattern is large, and only then can the mentality be generous.
If the eyes are broad, the world is narrow; if the dispute is short, the days and months are long. If the space-time pattern is vast, then the days and months are long, heaven and earth are wide, and mountains and rivers, and Fengyue have no owner. Whoever has a sense of relaxation and relaxation knows how to appreciate it is the owner. Relaxation and relaxation comes from the ethereal nature of the state of mind, and the abundance of time and space in the heart.
The more we need to expand time and space, the more we need to grasp the key points. The more accurate the key points, the more free we can squeeze out. This kind of accurate judgment requires deep wisdom, and even more courage to grasp the key points.
This is the concept of operation, and it is also the exercise of mentality.
7. Having talent and being slow is for great talent; being intelligent and energetic is for being wise.
You won't understand this before this level. In general, martial arts seek speed, strength, speed, ruthfulness, and accuracy. The whole person seems to be nervous and full of chastisement, yet the ultimate in kung fu, tai chi is a different scene. It uses static braking, roke, and strong intentions, no effort, four or two kilos of kilos, one bird cannot be added, and flies cannot fall.
It is the ultimate for a beautiful woman to have no fat, no talent for a book, and no sword spirit for a samurai. The advanced level of martial arts is not ferocious, violent, intense, and impulsive, but rather relaxed and gentle.
The awareness used in operation is more important than technology. Operation must be slow and the spirit must be reconciled. Only in this way can we clearly see the situation, grasp the key points, and manage trends. The ultimate in trading is the same as the ultimate in kung fu -- nature, connecting with other things, corresponding with nature. Trading also changes in response to changes in the situation due to inaction.
2. Endure: Speak and laugh to guide the situation.
3. Ruthless: If you don't bear it, it's reckless.
4. Laid-back and comfortable: People who can treat the loneliness of ordinary people into laid-back people are immortals.
5. Peace of mind: Nurturing emptiness is personal knowledge.
6. Calm atmosphere: Relaxed, quiet, intelligent, and deep. This is the ability to do big things.
7. Having talent and being slow is for great talent; being intelligent and energetic is for being wise.
Let me say a few words before opening the article:
Mentality first, technology second, capital third. Stunning skills are in place, and money has been scattered and returned. For experts, capital is not a problem; for doing nothing, nothing, doing nothing, doing nothing, people enjoy a leisurely life in the stock market, yet they enjoy the feeling of being immortal in the world.
Being laid-back and busy is the difference between a master and a master. Experts master technology, meticulous logic, and strict thinking. They jump up and down with the ups and downs of the market and market information. They live like a monkey. No matter how skilled they are, they will inevitably not be left behind, and the fun in life is completely lost.
Masters or grandmasters understand Zen and discard conventional theories and opinions, transcend fundamentals and technology, break out of the entanglement of information, technology, and fluctuations, transcend the entanglement of information, technology, and fluctuations. They are transcendent, enjoy a rich, profitable and quiet life, and leisurely see Nanshan Mountain.
The realm of stock trading: The story of the three Bian Magpie brothers.
Wei Wenwang asked the famous doctor Bian Magpie: “All three of your brothers are good at medicine. Which one is the best?
Bian Magpie answered: The eldest brother is the best, followed by the middle brother, and I am the worst.
Wen Wang asked again: So why are you the most famous.
Bian Que answered: My eldest brother treated the disease before the onset of the condition. Since the average person doesn't know that he can eradicate the cause in advance, his fame cannot spread.
Brother Zhong's illness was treated when his condition began. The average person thinks he can only cure minor illnesses, so his fame only extends to his hometown. And I'm treating the disease when the condition is serious. The average person has seen me perform major surgeries such as putting a needle on my meridian and putting medicine on my skin, so they think my medical skills are highly skilled, and my fame spread all over the country because of this.”
Who should the three Bian Magpie brothers appreciate? This is a difficult problem because they study medicine. However, when it comes to the capital market, this kind of entanglement doesn't exist; making lots of money is the right path. Naturally, Big Brother Bian Magpie is the cleverest. To trade stocks, you need to learn from Bian Magpie's elder brother. For doing nothing, doing nothing, and being tasteless, enjoy wealth, peace, and tranquility in a leisurely and comfortable environment. Instead of hustling around, hop on and off.
This post tells you how to be a big brother in the stock market. It goes beyond capital, information, value investment, and technical analysis, and directly touches the deepest essence of the market. Next, I'll cut to the point, give you some guidance, and let you see the quiet parts of the curved path through the guide.
1. Seeing clearly: seeing trends and other big money
The reason truth is difficult for people to grasp is not because it is too difficult, but because it is too simple.
Stock trading people are all smart people. They can't make or lose money, not because everyone is too stupid, but because everyone is too smart. There has always been money from stupid people and smart people in the stock market. Perhaps people are not convinced, let alone believe this kind of thing exists.
Let's take a look at an example:
Author of “Short-Term Trading Tips”: Larry Williams's method for making money is the “sit and wait” secret. He said that he had the urge to enter the market many times, but every impulse made him lose money, and he lost his heart. Once again, he felt safe using the original method to make money. He said that his profits of one million US dollars are all waiting; that's it, waiting.
In “Memoirs of a Stock Master”, Jesse Livermore experienced three ups and downs in his life. As one of the greatest investors in the history of American trading, he eventually chose to commit suicide due to depression, believing that his life was a failure. He actually earned money by pretending to be dead, and controlled his desire and impulse to trade through sleep, thus avoiding failure and exploiting profits. As a result, he succeeded. Unfortunately, he was still too smart to control his impulse to trade, and in the end, he created a tragedy for himself.
Where's the mystery?
Westerners don't know this, can't understand it, and can't understand it. It's not surprising, but as a Chinese, you can't just ignore it, because the West doesn't have a culture that guides people out of their way of getting lost, yet our China has a natural cultural foundation of ingenuity, great wisdom, loud noises, and invisible elephants.
“A sergeant sings and acts diligently; if a sergeant sings, if he survives or dies; if a corporal sinks and laughs loudly, it is not enough not to laugh.”
People with superior intelligence can understand the truth and be happy to put it into practice all at once; moderately intelligent people will believe and doubt the truth; lower-level idiots always think they are self-righteous and smart. Not only can they not understand the truth, but they also laugh out loud. Therefore, Laozi told everyone the criteria for discerning the truth: most people would disdain it when they read it; what makes them laugh out loud is the truth.
Because idiots are always in the majority, it's not enough to be big enough. We Chinese have a unique advantage. I hope the majority of shareholders can carefully study the culture of our ancestors and join the ranks of a few wise people, whether they are countries** or respect their ancestors. Anyway, learning these things will make your life better.
Stock trading is a very simple matter, but I said it all at once. Everyone is bound to scorn them and disdain them; it is a waste of effort to make many people who could have been freed struggle and be inexorable in the middle of a sea of stocks; it is actually contrary to the Western Patriarch's mercy purpose of popularizing all living beings.
The secret is: you can only make money if the market rises.
You might think this is nonsense, but this is the truth; because it's so simple, people ignore this truth and think it's nonsense.
You can only make money when the market rises. That is to say, when the market is in a declining trend, honestly short your positions, don't play against the market, and can't get along with your own money.
You can only make money when the market rises. In other words, don't mess around in times of turmoil and consolidation; if you don't make any effort to please yourself, why bother?
You can only make money when the market rises. That is, follow up when the market is on the rise, then wait, sleep, or pretend to die until major changes occur.
The transaction requires a handling fee. If you do it one more time, the handling fee will be sent if you do more.
Once a trend is formed, the battle between long and short is already divided. It will not be easy to change for a while. The trend will continue, and at the same time, it will take time to continue. Time is space, and we are willing to spend time and wait until profit margins expand.
It's hard for people who haven't tasted the sweetness of waiting to experience the mystery of being relaxed.
At some point, when the entanglement in the stock market turns dizzy, tired, and suffering is unspeakable, give yourself a vacation. Imagine how comfortable it would be if you set your sights on a direction from two weeks to a month and didn't care how fluctuating in the middle would be.
Why is it tormented? Because every fluctuation determines your fate, your heart always presses a stone, and the pain is endless.
Actually, if the market is on the rise, it will naturally rise, and it is normal that there will be fluctuations in the meantime; if you don't get entangled in these details, you will be relieved.
If you are entangled in fluctuations, then every move in the market will determine your mood, so can you bear the ups and downs of your mood? Can't you get lost? It's clearly an upward trend. A small downward fluctuation makes you feel like a disaster is imminent. Not to mention the mental torment; if you don't stay at the bottom for a while, cut the warehouse, lose money, and lose money, your heart is even more torn.
How to Relieve: Don't Let Fluctuations Affect Your Mood
Follow the trend. A wave of trends is formed, and the trend will not end until it runs to the end. You can safely wait boldly. If you only care about trends and ignore fluctuations, you will reach the other side of entanglement to the other side of relaxation.
As soon as the order goes down, what you need to eat is a wave of trends. That kind of confidence is such a comfort to the heart.
As soon as you go down, what you see is the long term. It doesn't care about small fluctuations, so there are no internal entanglements and torment, and there are no ups and downs in the heart, and how calm it will be.
As soon as the order goes down, what you eat is a big profit. It is also easy to handle large sums of money. It is calm and atmospheric, graceful and luxurious. This is the style of doing big things and making a lot of money.
Once ordered, through the phenomenon of fluctuation, I have grasped the essence of the trend, stopped suffering from losses, surpassed fluctuations, and controlled the trend. The market has become my own good friend. This is wisdom and blessing.
No wind is leaving for the ship without direction
If a person doesn't know which way he wants to sail, then no wind is a smooth wind. --Seneca's “A Brief Book of Morality”
It's also appropriate to use this phrase in the stock market - if one can't see the trend clearly, then any fluctuation is a torment.
The root of all mentality problems is here, and the solution to all mentality problems is also here.
On the contrary, if you can clearly see the nature of the trend, then any fluctuation is your friend. In the middle of the upward channel, you lose sight of the trend, follow the trend in the macro, and buck the trend at the micro level, thus maximizing profits. In this way, fluctuations have become my friend and a source of happiness for myself.
Adherence to “simplicity” is the greatest achievement of all time.
There is an enlightening saying in psychology: people with a simple heart always need complicated embellishments and fillings, while people with complex hearts have special paranoid requirements for simplicity.
The path is simple, and adhering to simplicity is not something that the smartest people cannot do.
2. Endurance: Talking and Laughing, Guiding the Situation
The common characteristic of people who make money in the stock market is: they can endure
It's not difficult to see the trend clearly. A three-year-old child can also know the upward and downward trends, but traders who have experienced hundreds of battles may not be able to stand it.
Williams relied on foolishness and pretended to die; Nicolas Davas simply slept when he couldn't get through; Livermore was known as the greatest trader, and he eventually chose to commit suicide after going bankrupt five times because he couldn't stand it. Buffett became a stock god. What is superior to them is not technology or theory, but the three words “endure.”
It is also difficult for these experts and celebrities in the investment industry to survive. It can be seen how rare the word “patience” is.
The first point explains the essence of grasping trends through the phenomenon of fluctuations. The emphasis on this point is how to stick to the trend. This is the hardest part of the difficulties. It is so difficult that even genius traders can't stand it. They must use the method of pretending to sleep and force themselves not to watch the market to make themselves stick.
Looks like Buffett doesn't watch the market either! Because those fluctuations don't affect the nature of the trend, they affect the ups and downs of mood and interfere with one's judgment on the trend. If you can't stand it, it will be a big mistake.
So be sure, definitely, and remember this principle: endure. Otherwise the trend has nothing to do with you.
After understanding the nature of the trend and being determined to withstand the interference of fluctuations, the next step is to handle the selection of trading points. This is pointing the flow.
How are the key points of trading determined. Here are some tips for investing in genius:
1. Williams's only way to earn one million dollars: follow up when an incident breaks out, set a stop-loss wait, and pretend to die for 3 days, 5 days, and 2 weeks... Wait until the last minute to leave.
2. Nicolas Davas is regarded as the retail king for his monograph “How Do I Earn 2 Million Yuan in the Stock Market”. In fact, he has also been “eating fresh food all over the world” all his life. He is the founder of “box theory.”
He found that the combination of price and increased trading volume is a powerful source of demand driving stocks forward. In this trend, stocks will move in a series of structures he called boxes. For example, if a stock will jump between the highest point and the lowest point (such as $35 and $40), then this stock will form a 35/40 box.
If the stock price exceeds the peak position of $40 in the example above, especially as trading volume increases, he will buy the stock. This sign proved to him that stocks are ready to move like the next level of boxes and have enough demand to rise in price. If it falls to the bottom of the box, he will immediately throw out his shares. The “box theory” of stocks is a short-term operation magic weapon.
Everyone should keep in mind that this retail investor only did this trick from beginning to end. This move made him invincible. If everyone used his trick, wouldn't it be possible to get nine out of ten and be stable? The same pattern of behavior gets the same results; as long as the pattern of behavior of Dawas is copied, then the result of Dawas must be obtained.
His biggest difficulty was to make judgments that were no longer critical like Williams, but in resisting the control of the impulse to trade.
3. Key points of Livermore.
Livermore only operates stocks when the market is rising, and selects leaders (leading sectors, individual stocks) in the upward trend. His operations include three important concepts: normal retracement, danger signals, and key points.
The undrastic pullbacks are all normal retractions. He emphasized that this kind of pullback is completely normal. Never be afraid of this normal action. However, once there is a sharp retracement, then you have to be very afraid. This is a red flag; another danger sign is that the market pulls back to a price level, then rushes back to a price close to the original price level when it continues to rise, then retreats again. Normal retracement and danger signs are actually grasping qualitative and quantitative changes, resisting fluctuations, and maintaining trends.
Key point: As an example, he said that if the market rises from 40 to 45, then pulls back to within the upper and lower levels of the 40 price level and continues to rise, then it can be followed up at this point. This is the key point.
This critical point is also stable by taking ten and nine.
Since this post isn't about technology, I'm just going to introduce it in such a no-nonsense manner. That's enough.
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As a successful investor that retail investors can learn from, Davas' growth experience is particularly useful. After three stages of transformation, he became an expert stock trader.
Naturally, the first stage of stock trading is to focus on stocks recommended by people around you. Like many newbies, this random system doesn't have good results. Nicolas Davas fell into a strange circle of frequent trading. He once held 30 stocks, had a very poor record, and lost an average of $100 a week
After that, Davas began studying the information himself. Start subscribing to stock market information, pay attention to financial information, and enter the second stage of stock trading.
At this stage, he began blindly buying stocks recommended by experts, and lost quite a bit of money.
To better understand exchange language and Wall Street rhetoric, Davas began to read as many books as he could about the stock market and investments. He once said that he has read over 200 books on the stock market and great speculators.
He decided to act according to the market's own behavior and began to carefully study price changes between stocks. He looked for patterns, price behavior, and how they actually performed by studying past stock market guides and price charts.
He continued to use a combination of fundamental analysis and technical analysis, and later formed his “box theory.” Thus he entered the third stage of his stock trading, the stage of forming his own stock trading model.
3. Ruthless: If you don't bear it, it's reckless
The decision to enter the stock market is difficult, the decision to stay in the middle is difficult, and the decision to leave the market is difficult. If it's difficult, it's hard to drag the mud and carry water; the solution is to be patient by gnawing your teeth and being patient.
Tired of being covered with mud and water, the root of the disease is in love; it is as good as it gets round; it's cheaper in a naiji.
Stock trading is about abandoning an impetuous and greedy mentality and cultivating patience and decisiveness. This is not only a process of improving the level of operation, but also a process of cultivating one's mind and changing one's temperament.
When there is a signal to open a position, you must decisively open a position as soon as there is a signal to open a position, and when there is a major signal, you must dare to take a heavy position. This requires being tough on yourself; otherwise, you will miss out on the opportunity, and it is too late to regret it.
It is very important and difficult to get used to “retreat normally” in the middle. It is also very important and very difficult to achieve. International experts and speculators know how important this is, but they are also often upset by this. Sometimes they are unable to overcome their inner impulses, and they can only pretend to die, sleep, or be stupid like some people to force themselves to abide by the principle of not acting recklessly.
Halfway holding means grasping trends. Just like riding a horse, if you always get off and chase horses, not only will you not enjoy riding a horse along the way, you will also lose a lot of energy and waste a lot of manpower, material resources, and financial resources. You should cultivate the quality of bravery and have a big heart. You should firmly believe that you are an excellent knight who can handle a reed horse. Trust yourself to the reins, and let the reins run at will, and not interfere as long as you don't follow your own principles. In this way, you can control the trend rather than be driven by the trend.
What we want is to control trends, ride horses, not race with horses, be ridden by trends, and be fooled by fluctuations.
Halfway holding is the most important and hardest. You have to treat a crying baby as hard as a parent in exchange for the right results and the happiness you crave.
Leaving the market when an exit signal appears, and stopping loss when a stop-loss signal appears also requires the courage to break a knife. It's not difficult to have wisdom; it's not easy to have courage. Stock trading is not only an exercise of wisdom, but also a cultivation of strong inner qualities.
Cultivating courage and heart is far more important than intellectual education and knowledge learning. Stock trading requires not only professional knowledge and mature theory, but also the demeanor and feelings of a man who is at the top of his position. The stock market is a university. This school refines talents, shapes character, brings wealth, and creates miracles.
If “seeing far” means cultivating far-sighted foresight and wisdom, practice the insight and literacy to do big things. Well, “being able to hold back” means cultivating a calm, graceful mentality, and practicing the style of a general who is in a relaxed manner; “being able to be tough” means cultivating the quality of firm and decisive will, and developing a grand sense of courage and a broad mind.
It is not only an improvement in technology, but also an improvement in the quality of life, the sublimation of personal quality, the quality of life, and the depth of life that is extraordinary.
4. Laid-back and comfortable: People who can treat the loneliness of ordinary people into laid-back people are immortals.
Stock trading is like a hunter looking for prey, seizing the moment to aim, and shoot. Most of the time spent waiting is, and pulling the trigger is only a moment. The actions required to trade stocks are simply knocking on the keyboard a few times; the rest is just watching and waiting.
If this kind of waiting is painful, then it is loneliness; if it is peaceful and happy, it is laid-back.
Only by grasping the key can we take the initiative. Only by grasping the initiative can we make waiting easy and comfortable. In order to avoid falling into passive torment, you need to know what the key things are.
5. Peace of mind: Nurturing emptiness is personal knowledge.
Develop a mindset of not being afraid of a “normal retreat,” and at the same time develop a habit of being wary of “red flags.” Once you have achieved these two points, you can feel at ease.
A “normal retracement” is a normal fluctuation that does not damage the trend, and a “danger signal” is a sharp change that poses a threat to the trend. The former requires that the order be held unchanged, while the latter requires leaving the market to wait and see. This quiet treatment is the key to determining whether the state of mind can be at peace.
The mentality depends on grasping “critical points” and determining “normal withdrawal” and “danger signs.”
6. Calm atmosphere: Relaxed, quiet, intelligent, and deep. This is the ability to do big things.
What is calm? Calm is a calm state of mind and a stable mood, without the worries of impatience, unease, and ups and downs.
What is the atmosphere? Atmosphere is a long-term vision and grand handwriting, not cowardly and wretched, quick to make quick gains.
The trend is stable. This is the theoretical basis for stabilizing the mentality. This is extremely important. Not only does it have technical significance, but more importantly, it is the significance of mentality cultivation.
The opposite side of a trend is fluctuation. Fluctuations are not stable, let alone uncertain. If the mood is determined by fluctuations, then the suffering will begin, and you won't be able to get rid of it even if you want to get rid of it.
This is where the deciding factor is whether you are laughing and using the military, or if you are in a state of anxiety.
Time and space complement each other. You can only have a lot of space for a long time; if you want to enjoy big profits, you must have a sufficient length of time; if you want to be ambitious, you must have a long-term vision; only with a long-term vision can you write big. Atmosphere means that the space-time pattern is large, and the space-time pattern is large, and only then can the mentality be generous.
If the eyes are broad, the world is narrow; if the dispute is short, the days and months are long. If the space-time pattern is vast, then the days and months are long, heaven and earth are wide, and mountains and rivers, and Fengyue have no owner. Whoever has a sense of relaxation and relaxation knows how to appreciate it is the owner. Relaxation and relaxation comes from the ethereal nature of the state of mind, and the abundance of time and space in the heart.
The more we need to expand time and space, the more we need to grasp the key points. The more accurate the key points, the more free we can squeeze out. This kind of accurate judgment requires deep wisdom, and even more courage to grasp the key points.
This is the concept of operation, and it is also the exercise of mentality.
7. Having talent and being slow is for great talent; being intelligent and energetic is for being wise.
You won't understand this before this level. In general, martial arts seek speed, strength, speed, ruthfulness, and accuracy. The whole person seems to be nervous and full of chastisement, yet the ultimate in kung fu, tai chi is a different scene. It uses static braking, roke, and strong intentions, no effort, four or two kilos of kilos, one bird cannot be added, and flies cannot fall.
It is the ultimate for a beautiful woman to have no fat, no talent for a book, and no sword spirit for a samurai. The advanced level of martial arts is not ferocious, violent, intense, and impulsive, but rather relaxed and gentle.
The awareness used in operation is more important than technology. Operation must be slow and the spirit must be reconciled. Only in this way can we clearly see the situation, grasp the key points, and manage trends. The ultimate in trading is the same as the ultimate in kung fu -- nature, connecting with other things, corresponding with nature. Trading also changes in response to changes in the situation due to inaction.
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