Chapter 48, the technique of copying the bottom

Through studying the trend chart of SAIC, Zuo Yuliang got a little trick of buying stocks at the bottom, which can be counted as his bottom-buying theory! The content of his bottom-buying theory is actually to use the viewpoint of symmetry theory to find the relative low point of the stock in the rise or pullback, and then intervene in the stock to rise.

In the next practice, Zuo Yuliang consciously and continuously applied his bottom-buying skills to test whether the accuracy of his stock selection was reliable. As a matter of fact, in the actual combat operation, Zuo Yuliang found that there were still many areas to be improved and paid attention to. This technique is not a surefire one-size-fits-all approach.

To this end, Zuo Yuliang has made new annotations and modifications to the bottom-buying techniques he has summarized, so that it can improve the accuracy of bottom-buying in the actual practice of buying stocks in the future.

The first is the study of China's stock market. Through the comparison of highs and lows over the years, the China A-share index is generally a rising process, and the general trend is in an upward cycle. That is to say, if there is a large-scale pullback in the stock market, the vicinity of the previous swing low is the limit low of the stock index pullback. This is backed up by actual numbers. Zuo Yuliang made a table of the research results he collected, and the highs and lows of the stock index were clear at a glance.

In 1996, the lowest point of the stock index was 549 points. In 2001, the stock index peaked at 2,240 points.

In 2005, the lowest point of the stock index was 998 points. In 2007, the stock index peaked at 6,124 points.

In 2008, the lowest point of the stock index was 1664 points. In 2009, the stock index peaked at 3,478 points.

What will be the way to go in the future?

From the lowest point of the stock index above, Zuo Yuliang came to a conclusion that every time the Shanghai Composite Index hits a new high, although there are also pullbacks with different long and short periods, in the end, they do not break the previous low, and the low point is roughly raised at about 500 points. That is to say, from the beginning of the market pullback in 2009, it is estimated that the last market pullback low is around about 2100 points, which is Zuo Yuliang's first judgment on the future pullback low point of the market.

This is the first conclusion that Zuo Yuliang came to when he studied the trend of the broader market, because in China's stock market, the trend of most individual stocks is still consistent with the trend of the stock index. This is especially true for large-cap blue-chip stocks.

After studying the possible future trend of the market, Zuo Yuliang improved his research conclusions on the trend of individual stocks.

First of all, Zuo Yuliang resolutely omitted poor performance stocks and all kinds of junk stocks, because such stocks rose in an irregular manner, and all relied on speculation; there was no bottom line when they fell, and they could fall and delist until the stock price reached zero. Zuo Yuliang's main focus is on the stocks of various well-known companies with excellent performance. At the very least, these stocks and companies don't mess around. It's also more down-to-earth to buy. Buying this kind of stock is like raising a good child with excellent character and learning at home, the same training, the expectations will be greater in the future, and it is more worry-free to cultivate. This is also one of Zuo Yuliang's biggest experiences in stock trading.

The rise of stocks is nothing more than two stages, one is the rising stage and the other is the correction stage. For China's stock index, it is generally a long process of fluctuating and rising, and correspondingly, for all kinds of high-performing stocks, there is a high probability that it will still go through such a rising process. This is a premise basis for Zuo Yuliang to put forward his theory of copying the bottom.

Then it is relatively simple to operate, that is, to find the low point of each adjustment of individual stocks in the process of rising, and then wait for the stock price to pull back to near this low point and buy boldly.

For the stock price trend of individual stocks, from the rise to the emergence of the high, and then to the emergence of the pullback low, the symmetry of the stock price is very obvious. Generally speaking, the price at which a stock starts at the beginning of each upward movement is the low point at which it will retrace in the future. This is sometimes the position of the previous swing low. Considering that it is a pullback in the process of rising, the low point is often slightly higher than the previous low, and it may not completely retrace the previous low, which is a point that needs to be clear when buying the bottom. For example, if the starting price of the previous low is 5 yuan, then the low point of the next pullback may be around 5.3 yuan. But at this time, you will start to have the courage to take the bottom.

Of course, this symmetry, on the whole, price symmetry is the most manifested and most common in the stock market. And the symmetry in time ultimately follows the symmetry in price.

As far as time symmetry is concerned, there are roughly three situations, one is a rapid rise and slow fall, the rise time is short, the fall time is long, but the stock price will return to the previous low point; one is the rapid rise and fall, this kind of stock time and stock price are basically symmetrically distributed, the rise and fall time is symmetrical, and the stock price is also roughly symmetrical; one is the slow rise and fall sharply, which is mostly an emergency, generally based on the collapse of the fall, often the time and the stock price are not completely symmetrical, the rise time is long, the fall time is short, and sometimes the stock price will fall below the previous low distance。 However, such stocks tend to be over-corrected, especially with bottom-buying value.

Zuo Yuliang observed Wuliangye for nearly a month, and gradually found that its pullback belongs to the type of rapid rise and slow fall, and the time for the future pullback will be long, but the stock price is often near the relatively high position of the previous low. It tends to have strong support and is also the low point of the swing for the next upswing.

After perfecting the study of bottom-buying tips, combined with the possible future pullback trend of the market and the type of callback of Wuliangye, Zuo Yuliang came to a conclusion: the market is estimated to pull back to around 2100 points. Wuliangye is estimated to pull back to the price range of 20 to 23 yuan, and then you can consider entering the market to buy the bottom.

Coming to this conclusion, Zuo Yuliang breathed a sigh of relief, which may be a very valuable conclusion for them to profit again in the future. Of course, this is also his hard work!

After summing it up, Zuo Yuliang posted his views to the QQ group. It is hoped that the few people who participate in their group will have a basis when buying stocks, and that there will be less punishment due to impulse.

"The latest research report is out, let's take a look! The market is estimated to pull back to around 2100 points. Wuliangye is estimated to pull back to the price range of 20 to 23 yuan, and comrades can consider entering the market to buy the bottom when the time comes. ”

"Brother Zuo, is it the synchronous adjustment of the market and Wuliangye?" Liu Pengfei said in a message.

"No, Wuliangye's trend seems to be stronger than the market!" Cao Yinqiu said in a message.

"Near 2100 points is the position where the market is likely to adjust in the future, and the low point of Wuliangye's pullback is near the low position before 20 to 23 yuan, and the two estimates are not synchronized. Zuo Yuliang explained.

"Understood, let's copy the bottom of Wuliangye first, and then slowly wait for the adjustment of the market. Cao Yinqiu sent a message and said.

"I judge that the market will adjust slowly this time and will not fall sharply, but this move will be very torturous!" Zuo Yuliang sent another message and said.

"The strong stocks in the weak market are none other than Wuliangye. Hehehe. Remember that when the time comes, you will have to have money to buy the bottom!" Chen Menglong said in a message.

"Thank you Brother Zuo for emphasizing that we must firmly implement it. Li Ruyun sent a message and said.

"Congratulations to everyone on continuing to make a fortune when the time comes!" Zuo Yuliang said in a message.

"If you have any experience with other stocks, you might as well send some messages to the group, so we can share them together!" Cao Yinqiu also sent a message and said.

"I have collected relevant national policies since January 2010, and it seems that I am not too optimistic!

1. Real estate regulation.

2. Under the influence of inflation, the national monetary tightening policy will lead to a shortage of funds.

3. New shares will be vigorously issued.

The state's policy toward the stock market has begun to turn, and everyone should be careful. Liu Pengfei sent a message and said.

"Let's see as we go!" We are still people who came over in the wind and waves, but if we want to survive in the stock market, we still have to be careful and restrained!" Zuo Yuliang said in a message.

"The rice still has to be eaten, but it has to be eaten one bite at a time, and the stocks still have to be fried, and it is even more urgent, and we must be patient and wait for the opportunity to come. Du Wenfeng sent a message and said.

"Hahaha, Wen Feng said it well, we need vision and patience!" Zuo Yuliang sent a message and said.

In this way, in the discussion with each other, everyone gradually clarified the adjustment that the market may come in the future, and clarified the approximate time point of the bottom price of Wuliangye stocks.

In the next time, everyone is still what to do, just wait for the arrival of the adjustment low point of Wuliangye, and when the time comes, Zuo Yuliang and his colleagues can make great strides into the market to buy the bottom and set sail.