Chapter 32: Dancing with Zhuang

In Zuo Yuliang's view, as a retail investor, there is a common disadvantage when trading stocks: he has the patience to endure trapping and losses, but he has no patience to endure profits and rises. In the operation of Shanghai Motor, Hu Weiyong is a typical representative. Including Zuo Yuliang himself, he didn't calm down, and still reduced his position by 20,000 shares, but if he postponed the stock dump a day, he could make at least three cents more profit per share, and 20,000 shares would also have a lot of profits, but Zuo Yuliang just didn't hold back. Afterwards, he was also thinking repeatedly, what caused him to have such a nonsensical operation?

There is a saying called "money is rushed". This is a superstitious saying, that is, as the saying goes, "there are times in life when you have to have it, and there are times in life when you don't want it." That is to say, making a small amount of money can depend on hard work and luck, but making a lot of money depends on fate. Although Zuo Yuliang disagrees with this statement, he sometimes has to think so. Similar stories, the most classic story Zuo Yuliang heard on TV is the story about the God of Wealth in "Lao Liang Telling Stories" about the God of Wealth who can't save his life and the poor beggar. But if a person believes such nonsense, he will probably never turn over in this life. We still have to have the courage of Nezha: My life is up to me, not to heaven! Otherwise, hard work and struggle will lose the meaning of its existence.

Putting aside the number of fate, Zuo Yuliang's main thinking is about human nature and psychological issues in stock operation. In the final analysis, he felt, the problem was his own subjective psychological judgment. It is the weakness of human nature that causes the stock price to rise more, and the more you have to gain and lose your shares. After thinking about it, this weakness of human nature, Zuo Yuliang finally boiled down to his own fear of losing. The more you are afraid of losing, the more you will lose, this is a psychological circle, that is, people often say that the poorer you are, the more hell you see.

Another reason is that there is a lack of technical analysis of stocks. Although I have read a lot of books about stock trading and technology, there is a huge difference between what is said in the books and the fluctuations in stock prices in reality. You judge that the stock price is going to go up, but it goes down, and you judge that the stock price is going to fall, but it goes up. The number of such times caused Zuo Yuliang to doubt what he learned in the book. And the final impact of doubt is that the confidence of one's original shareholding is shaken. If the execution is not in place, it will often make wrong decisions, resulting in regret that it is either too early or too late. Therefore, stock trading requires continuous learning, and you must flexibly apply what you have learned in order to make fewer mistakes and gain more.

In addition, there is another reason: Zuo Yuliang himself does not know how far the stock price will rise in the future. He can only rely on his own judgment to make a rough positioning, it is precisely because of this uncertainty that he has the idea of holding shares to close when he sees a good situation, worried that once the stock price pulls back, the existing gains will also fall, and then he will just ride a roller coaster in vain, empty joy.

What are the other reasons? Zuo Yuliang continued to think about the reasons that affected his confidence in holding shares.

Thinking further, Zuo Yuliang thought of the influence of the surrounding environment. Especially the short-term operation of the stock trading colleagues around him, sometimes it really interferes with his judgment. For example, when Cao Yinqiu was doing short-term trading, if they bought stocks that had risen continuously, it would really be eye-catching! This mountain saw that the mountain was high, and in the end it was a constant self-denial of its original judgment, changing the long-term to the medium-term, and the medium-term to the short-term, and in the end it fell short.

After thinking about it, Zuo Yuliang finally came to a conclusion: the important thing in stock speculation is to refine the heart. You must exercise your strong heart, do not panic when you rise, and calm when you fall.

As for whether the stock price rises or not, Zuo Yuliang also came to his own conclusion: to speculate and judge with common sense, other technical means and indicators can only be applied as a reference element.

For example, for the operation of SAIC, Zuo Yuliang adheres to such a principle.

Through tracking, Zuo Yuliang judged that the main force of SAIC was constantly building positions, and his position range was between 2.5 yuan and 3.5 yuan. At present, SAIC is in the first wave of upward stage. Zuo Yuliang judged that because the rise was too fast, he would probably pull back the support of the annual line, which is a phenomenon that can often be seen in the process of rising stock prices. It shows that he is the main force of opening a position, and he also operates repeatedly. His ultimate goal is to crack down on the followers and wash away some short-term cross-river dragons, but he will not kill the stock price too low. This is Zuo Yuliang's judgment based on the current technical form of SAIC.

As for what price SAIC can rise to in the future, Zuo Yuliang does not know. He shouted in the group that it had risen tenfold, and he also shouted it on a whim. But Zuo Yuliang knows that the funds that have been building positions for so long at the bottom will not sell their shares when the stock price rises by twenty or thirty points, which is the result of Zuo Yuliang's common sense reasoning. At the very least, he has to double the stock price before he can get out of the way. A reasonable target should be around $7, on the daily candlestick, just near the 610 EMA. Of course, about the 610 moving average, Zuo Yuliang also learned from books. It is often the starting point for stocks to get out of the bull market.

Now Zuo Yuliang has sold 20,000 shares, although he is a little entangled in his heart, but his original intention is to make a swing, if the stock price pulls back, then he can reduce the cost and buy it back; if the stock price continues to rise, it still has 20,000 shares as the bottom position, and it can still make a profit. After thinking about it, Zuo Yuliang felt that this was a very good way. If this practice is done correctly, then Zuo Yuliang's operation level can also be improved.

Moreover, from the perspective of the overall external environment of the stock market, the policy has also been encouraging over-the-counter funds to enter the market to go long, just as Zuo Yuliang said to his colleagues before: stock speculation follows the party to ensure that stock speculation lasts for a long time. The national policy is Zuo Yuliang's mother's family, and the future development prospects of SAIC are the confidence of Zuo Yuliang to continue to hold shares. From the perspective of common sense, the future of SAIC should be bright.

Zuo Yuliang figured out these truths and gradually agreed that it was correct for him to hold shares in SAIC, and the next thing to do was to continue to hold shares patiently. In the future, maybe the house and car can be brought to Zuo Yuliang's home! This is Zuo Yuliang's dream of stock speculation!

Only when there are dreams can there be hope! Zuo Yuliang often said to several buddies in the group. It's just that his dream was too advanced and unrealistic at the time.

Later, it turned out that Zuo Yuliang's shareholding in SAIC was indeed right.

After a short pullback, SAIC Motor has returned to the support of the annual line. After the support of the waiting year line was confirmed to be effective, Zuo Yuliang bought back the sold stocks near 4 yuan, and bought 5,000 more shares. After that, SAIC rose all the way to around the 610-day moving average in two months, and then began a second pullback and shuffle.

After getting familiar with the routine of Shanghai Motor, Zuo Yuliang was relieved and boldly began to dance with Zhuang.

Of course, the market is also very strong, and by July 2006, the market was also rising.

In this process, Zuo Yuliang's only regret is that several of his stockholders only intermittently participated in the swing rise of SAIC, they are still in and out every day, constantly throwing out and buying for the rise of three or five points, and doing odd jobs for brokers. Sometimes the operation is wrong, and ten times the profit is not enough to lose one time.

Who can they blame for such a tragic operation? Everything is "pre-planned, and unprepared is wasted", and the skills of stock speculation must also be constantly thought about and improved!