Thursday, July 9, 2015 at 6:50 a.m

Improve the "Position Reduction and Lock-in Profit Method"

When I was a child, I lived in the mountains, and the transportation was inconvenient, and I had to walk a day's journey back and forth into the city. When I was nine years old, my father got up before dawn and went into town, and I was curious and asked, "What should I do if I get lost when it's dark?" Dad said, "If you go the right way, you won't be afraid of getting lost." These words were etched into my mind like an imprint. As a child, I always had good academic performance, which was a miracle in our ravine. But high school is in the city, high school a few years before I know what is called the sky, I am not good at English, physical chemistry hands-on ability is poor, learning can not keep up, every time I go home I can't hold on, want to go out to work, my father told me, study is a good way, don't be afraid of hardship, persevere, even if you can't get into college, it doesn't matter, the second half of my life has no regrets.

I gritted my teeth, studied hard, and finally stepped onto the campus of a prestigious university. After graduation, he stayed in Beijing and had a stable job.

That's who I am, and my experiences have shaped who I am now. Even if it is a lot of hard work, never give up.

Just like my past stock trading career, there has not been a smooth sail, all of them have been moving forward in ups and downs, ten years of ups and downs in the stock market, ten years of bitter tears, friends around me, batches of exits from the stock market, and newcomers rush in. How many times have I stood at the gate of the stock market and wandered, whether to withdraw or not. In the end, I chose to stay, believing that this path was the right one.

To this day, I am still hesitating on this path.

After each ordeal, I wonder: What did I do wrong? How do I find the right direction in the stock market?

Last night, I couldn't sleep, thinking all night about the mistakes I made in the June crash.

To sum up, the fatal mistake is that there are huge loopholes in the risk control link in the profit model.

I would like to sincerely thank Wu Qingtong, a shareholder in 2015-07-03, who woke me up with a message post: "Your operating system is not a big problem, the key is that there is a problem with the implementation, individual stocks are not a large market, the central price can be set by yourself, the top and bottom can not be set, my bottom is set at 0, that is to say, the replenishment funds should be divided into sufficient shares, and there is also a fund to operate if it falls to 0, and the same top should not be guessed, as long as the individual stocks are not called out of the trading target, it is necessary to divide enough more shares to sell, and there is still a sellable bottom position when it rises to 100, In addition, if the new position is unstable on the same day, it will be closed on the same day. ”

And my mistake is that: according to the past experience of stock trading, I took it for granted to set the bottom of the stock, and took a heavy position to buy the bottom, which led to such a problem: when it rises, it rises with a bottom position or a half position, but when it falls, there is a heavy position or a cross position falls, which leads to heavy losses this time.

The process is as follows:

June 15: Bought at 44.81 yuan, and then felt that the market trend was too bad, so I sold at 46.70 yuan.

June 17: I bought at $41.10 and $40.21. The reason for buying is that the stock hits my bottom-buying position, and I keep buying at the bottom. It's a pity that at this time, the awareness of the risk of the market is not enough, especially for individual stocks, and the original mentality is "and currently in the bull market, so I am still relatively bold and dare to buy the bottom, I think this winning rate is relatively large." "Believing is a bull market, and the correction is short-lived.

June 30: Continue to buy the bottom, a small victory on the day. Still complacent. Although I am very worried about the market outlook, I think this adjustment will pick up soon. With relative optimism.

July 3: There was a loss in the account, all the profits before Chongbai were spit out, and there was a loss, so at this time, a wrong decision was made, although I knew that there might be a good policy on the weekend, but on Friday, I sold Chongbai in a cross position. I hope to reduce my psychological burden and continue to operate calmly. I didn't want to be the old man who catches turkeys.

July 6th: Stimulated by the huge positive weekend, the market almost opened with a daily limit, and I was dumbfounded, and this day began to be psychologically unbalanced. Feeling that the market may deduce the rhythm of the daily limit, he was afraid of going short, and bought again at the two prices of 27.19 yuan and 27.61 yuan. The closing price was 25.91 yuan, and it was trapped miserably on the same day. At this time, the mentality is already very unbalanced, unable to think calmly, suffering from gains and losses, and hesitating. I privately announced in the group that I would not see the lock-up. In fact, it is an irrational gambling behavior, and I think that there will be a rescue policy, although it is true that the rescue efforts have not decreased, but it still cannot stop the systemic risk.

After two heavy confinements on July 7 and July 8, the day before yesterday, I was very scared in my heart, will I go back to the cage I was locked in?

Now there is still a little profit, how can we survive in the operation of the market outlook.

In the evening, I went back to sort out my thoughts, this time I failed, suffered losses, failed because I was unwilling, failed in my overconfidence from the stock trading experience in 2013, and lost because I thought I could see through the future and control the risks. Not enough is done to control the risk.

Now it seems that we must abandon all illusions and improve the "Position Reduction and Lock-in Profit Law" and start again.

1. Stock trading concept: happy stock trading!

In the stock market, if you don't lose money, you make money, I don't expect the stock market to bring me a lot of wealth, I treat the stock market as a huge card table, and I come to the stock market for entertainment. If there is profit, it is a reward from God.

Discipline 1: Happy stock trading, no loss is earn! Abandon the illusion of making money to change living conditions, come here to play, and make money without accompaniment.

2. Risk control: Every day is in the "June stock market crash".

Acknowledging the existence of risks, the risk is set at a high level of risk in the "June stock market crash". Always be on your toes.

Discipline 2: The next trading day will be a "June stock market crash". Every time you make a move, you should take into account enough risk factors.

3. Stock selection mode: theme + technology + small cap stocks

(1) The reason for not participating in the large-cap stocks with 800 million circulating disks is that they cannot understand and have no sense of security.

(2) In terms of subject matter, it is best to be in the initial outbreak period, and should not participate in the theme that has been excessively hyped.

(3) Technically, the stock is in the rallying period, basically out of the bottom period of the position.

Discipline 3: Do what you are familiar with, and only do small and medium-sized caps with a circulation of less than 800 million.

Discipline 4: Avoid over-hyped themes.

Discipline 5: Try to avoid opening periods.

4. Shareholding mode: medium-term shareholding + blasting point position

The bottom position is tracked in the medium-term holding mode, and if you meet your judgment of the blasting point, you can increase your position to participate.

Discipline 6: Long-term tracking, medium-term holdings, short-term blasting.

5. Buying stock mode:

(1) Buy at the bottom: You can buy during the breakthrough period, or you can buy at the bottom when the market or individual stocks are in extreme panic:

Discipline 7: The bottom position cannot be higher than the three-percent position. Adhere to the 'buy under the line'.

(2) Buy with additional positions: Under the premise of meeting the discipline of buying at the blasting point, you can buy with additional positions:

Discipline 8: The amount of additional positions should not be more than the amount held.

Discipline 9: admit mistakes in time, increase the position of the stock bought, close below the price of the increase on the same day, and must be unconditionally out of the market. If you can't sell when you encounter a falling limit, you must sell at any price the next day.

Discipline 10: Increase the position to chase the rise and buy, only when the stock is the first time in half a year to buy in a radical way to chase the limit, not the first limit, resolutely do not chase the rise to buy.

Discipline 11: 'Buy under the black line' means that you can only buy below the short-term moving average or below the medium-term moving average, and during its decline.

Discipline 12: The stock price falls below the additional position again at the end of the day, and the additional stock is unconditionally sold at the end of the day. After the stock that was bought rose and did not go out of the market in time to make a profit, and the stock fell again, when it fell below the price of the additional position, the stock must be resolutely out. For example, if you buy 100 shares at 10 yuan, you don't sell them when they rise to 11 yuan, and they fall below 10 yuan, you must sell these 100 shares before the close of the day. It is absolutely not allowed to hold a losing additional position.

(3) Sell stocks: target achievement + locked profit selling:

Discipline 13: To achieve the profit target, you must sell the additional stocks. Even if the stock is in the main rising wave, you need to sell the additional stock. In the consolidation period, you must even sell the bottom position. Wait for the next goal to come out and move on.

Discipline 14: It's right to sell every time you make a profit, but keep the bottom position. Throw away all unrealistic illusions, in the process of rising, lock in profits, any one sell is correct, however, absolutely not sell the bottom position.

Discipline 15: Heavy positions rise, light positions fall. It is better to earn less than to lose big.

6. Twelve disciplines that cannot be crossed by individuals.

Discipline 1: Happy stock trading, no loss is earn!

Discipline 2: The next trading day will be a "June stock market crash".

Discipline 3: Be familiar with the small and medium-sized market with a circulation of less than 800 million.

Discipline 4: Avoid over-hyped themes.

Discipline 5: Try to avoid opening periods.

Discipline 6: The bottom position cannot be higher than the three-percent position. Adhere to the 'buy under the line'.

Discipline 7: The amount of additional positions should not be more than the amount held.

Discipline 8: Long-term tracking, medium-term holdings, short-term blasting.

Discipline 9: Admit mistakes in a timely manner.

Discipline 10: Only increase your position and chase up and buy at the first limit within half a year.

Discipline 11: 'Buy below the black line' means that you can only buy below the average price in the short or medium term and in the process of falling.

Discipline 12: The stock price falls below the additional price again at the end of the day, and the additional stock is sold unconditionally before the close of the day.

Discipline 14: It's right to sell every time you make a profit, but keep the bottom position.

Discipline 15: Heavy positions rise, light positions fall. It is better to earn less than to lose big.

Starting today, 100,000 real simulations, 20% profit targets in the second half of the year, strict discipline, adjust mentality, and fight the stock market again.

There are many flaws and loopholes in this method, please point them out so that I can adjust and modify.

Thank you very much. Starting today, we will be on the road again and meet the challenge.

I am willing to continue to suffer from the purgatory of the stock market under the thirty-sixth hell of the stock market.

Wednesday, July 9, 2015 at 9:11 a.m.