Sunday, June 14, 2015 Nagging Stock Speculation Indicator

Last night, I drank with my best friends, and these friends said that the stock market was making money, and they wanted to drink it to their heart's content, but the result can be imagined, and they drank a lot. I threw up from midnight until the sun rose, and I saw the color of bile in my stomach again, and tasted the bitterness of bile. Only then did I realize the old saying: "If you don't have that diamond, don't do that porcelain work." In real life, they will be self-aware and take the initiative to abide by the code of conduct, but in the stock market, retail investors often do not have any diamonds, crazy to hold the porcelain work, so after the bull market, more than 80% of retail investors will lose money.

Today, I want to talk about my diamond 'my trading system', if my friends see this post, they will definitely say: "Grass, a broken little scattered, like a successful person." "Nevertheless, I still want to say that I hope that all the spectators will come to see with the mentality of learning the lessons of failure, if you are a great immortal, please point out the fallacies in it, so that I can avoid those minefields in the future trading process, here, I thank you in advance!

Since I am writing this article with a self-entertaining mentality, I will pick up the important ones and jump directly to the selection of market indicators. I believe that this is what many retail investors are most concerned about, and it is also something that retail investors are crazy about. There was once a respectable friend, he was obsessed with indicators day and night, compiled a large number of indicators, but it did not change his fate of losing money in the stock market, his wife couldn't bear it anymore, divorced him, I don't know if this friend is married now? It's been a long time since I've been in touch, so I wish him happiness!

Many friends may often come into contact with software salesmen who claim that their software is good and good, and it seems that with his software, they can make money without using their brains.

Think about those years of crazy stock speculation for indicators, bumps and bumps, but no regrets, this is the price of growth. The reason why I say the indicator as a separate chapter is that I hope that my experience and opinions will help new retail investors to avoid detours and not be deceived. When you encounter a God software salesman again, face it with a rational attitude.

From the beginning of the stock speculation, on those various indicators from the DNA worship, at the beginning I began to study MACD, RSI, BIAS, VOL, etc., etc., at that time, holding an indicator book to read all night, but, after half a year of research, I understand that indicators are post-facto indicators, the previous data mechanical combination statistics are given, he is a kind of statistical chart for the completed transaction, strictly speaking, it is not possible to predict the future, he is just the former data statistics, Gives a prediction of the probability that the market will rise or fall in the future.

However, even if I realize this, I am still unwilling, I believe that there are great immortals in the stock market, and the reason why they can win must be to have indicators to help, so I began to buy indicators, buy books on indicator development to study and write indicators by myself, during this period, I also spent a lot of money to buy a set of software system of the god of stocks, and what is worse is that this software system still has a time limit, and it has to be renewed after a year. After buying this set of software, I found that the so-called god buying and selling point is not so accurate, the stock god tells you, you still have to learn to stop loss, and after learning to stop loss, the stock god tells you again, you learn to chase up, and so on after chasing up the quilt, the stock god will also tell you the right time to buy and sell and so on. Later, I felt cheated, after having this set of software, not only did not make a profit, but the loss was even greater, and after a year passed, the stock god asked me to renew, of course, I did not renew.

After thinking about it, I felt that I was naïve and ridiculous, if the software is really so good, then what kind of strength is it sold, he operates the software himself, won't this stock market become an ATM, and what software is sold bitterly, such a contradictory logic, I can't see it for a famous university graduate, it's really a book of sages in vain. Sweat~!

Later, I met a master on the Internet, he told me that this indicator is Sun Wukong's golden hoop stick, you must make it easy yourself, no matter how powerful the golden hoop stick is, it will not work if it is handed over to Zhu Bajie, the same reason, no matter how good the indicator is, it is not suitable for your trading style, not suitable for your character, not only can not play a good role, but will limit you from making correct judgments. He asked me to find a set of metrics that worked for me.

So I looked for free indicators on the Internet, and after research, I found that many free indicators are not inferior to paid indicators. However, you must go through the selection process and pick out the indicators that suit you.

Some indicators are marked with buying and selling points, and at first glance, it seems that following them to buy and sell is sure to win. But in the actual combat found a problem, follow these indicators to buy and sell, first of all, you have to have a strong trading discipline, to the buying point, you must buy, to the selling point you must sell. The requirements for personal self-discipline are extremely high. It's also important to note that some indicators are self-correcting after the fact. For example, if it is displayed as a sell before the market closes, and after you sell, the stock price rises the next day, and the signal to sell disappears again, this kind of indicator looks beautiful, but it is recommended to avoid it, which will mislead people.

For a while, when I opened the trading software, I wanted to hang out ten indicators on the software, and then I hated the small screen, and what was even more ridiculous was that some indicators showed two completely opposite indications at a certain point in time. You don't know whether to buy or sell. It would be strange to be able to succeed according to such a software operation.

Later, I really found the right indicator for me on the Internet, which is the indicator system I use now, which is simple and clear at a glance. And I corrected one of the indicators to my liking. I used this set of indicators for several years, and the more I used it, the more I used it, the more comfortable it became, and since then, I have not looked at any other indicators.

The indicator is my good friend always reminds me to abide by the trading discipline, when the stock price jumps far away from the short-term support, I will never chase the rise, I will only buy it when it falls back to the short-term support level, if a stock is in the rising channel, encountering an extremely bad environment, falling below my long-term support level, it will be a good opportunity for me to buy the bottom, I will call him an opportunity to make mistakes in the market.

Take Chongqing Department Store as an example: on April 9, 2015, the market fell, he inexplicably fell below my long-term support level, I did not hesitate to buy the bottom at 27.93, on May 6, 2015, fell below the long-term support level again, and I increased my position into a heavy stock. Recently, if Chongbai adjusts again, when it reaches the short-term support level, I will buy it back, hit the long-term support level, and continue to buy the bottom. Of course, this is an example of my personal strategy, and I don't mean to encourage everyone, please judge for yourself.

With indicators, the operation is regulated, and all my purchases are completed in the fall. Often in the reverse direction, of course this is in a bull market, and it applies to a specific stock, in a bear market, it is not possible to reverse the operation, otherwise, it will fall deeper and deeper.

At present, in my trading system, indicators are the source of discipline for all my actions, try to do as little as possible, and use indicators as a yardstick before I do it. Even if you are wrong, you will admit your mistake, but you will never regret it, and you will never regret it because of a failure in an operation, and make yourself messed up, which is also another magic weapon for 'maintaining a good attitude'.

Now I will no longer worry about tomorrow's ups and downs, I think every day is what will happen to me after tomorrow's fall limit, so I will take 'a good attitude', every day to laugh and look at the ups and downs, when the market environment is really extremely bad, I will not panic, but will look at the stocks I usually pay attention to, to see which one is when I should pick up the cheap. This method of operation is often criticized by stock market veterans, but I seem to prefer it, so it doesn't matter.

The indicator is a good tool for me, my 'diamond', and a faithful witness and executor of my trading discipline, but it can never replace my thinking and make any decisions for me.

That's my attitude towards indicators.