The two relative concepts of bottom safety stocks and high-risk stocks are considered to be Ding Xu's original and vigorously promoted in the miracle group, and thus form the basis of Ding Xu's unique tactics.

Searching on the Internet with Baidu, you can basically only find some network security stocks, information security stocks and the like.

The reason why no one mentions it is that few people think that the bottom must be a safe stock, because after the bottom there may be a further fall, and then a lower bottom, just like the tragedy of buying the bottom that investors often ridicule: "The bottom is copied on the floor, but I didn't expect there to be a basement, let alone a hell below, and hell has eighteen floors ......"

Therefore, for stocks that have been over-falling for a long time, there will still not be many retail investors who will be optimistic, because even if it is at the relative bottom of history, there is no room for decline, but grinding the bottom is also a very long process, which is very difficult. Even if the picture is cheap and rushes in, it is often grinding for several months in the tangled market where it is difficult for salted fish to turn over, and the retail investors are also worn away, coming out empty-handed, and not getting anything, and being grinded out of some losses.

Therefore, many retail investors would rather chase strong stocks that have risen sharply, even if they are prone to losses, they are willing, after all, this is somewhat exciting and exciting. love, and don't want to waste time in the bottom market of boiled water, waiting for the start of the year and month.

Ding Xu naturally also knows the effect of capital and time. After all, in the stock market, time is money, and it is best to trade on the right side and wait for the rally to be determined before entering, which is a good deal.

Therefore, Ding Xu gave a definition of the security stocks that can intervene: "We should focus on doing long-term and sharp declines, which are at the relative bottom of history." And after a long period of sideways accumulation. An over-falling safe stock that has just started the volume and is arranged by moving average bulls. ”

Ding Xu's definition. It is also after understanding the reasons for the losses and successful experience of many friends in the miracle group, I found out and always adhered to the tactics.

Because Ding Xu found that most people lose money and are trapped when chasing high, while those successful stockholders often buy stocks at the bottom and sell at the high.

In fact, this is the only way to make money in the stock market, buy low and sell high to make money. And buy high and sell low. You will lose money.

The problem is that the vast majority of investors can't stand the repeated shocks and torments of stocks at the bottom of history, and they can't believe that it is really the bottom.

And the bottom is indeed very abrasive and can wear out one's patience. If you are unlucky, when the market rises, the dealer has not finished washing, has not absorbed enough chips, and is unwilling to pull up, and retail investors will miss a wave of market because of this.

Therefore, in order to avoid this waste of funds and time effect, Ding Xu's bottom safe stock must take the right side trading method as much as possible. Looking for stocks that have just started, so he is in the definition. There are four principles.

One is that after a long period of decline and a sharp decline, both are indispensable, one is time and the other is space. Only in this way can there be enough room for overfalling, and after smashing and absorbing chips all the way, the cost of the main force will not be too low. What's more, in such a long period of time, the stock price has fallen sharply, and the main force has either temporarily left the market, or directly smashed the market, basically without profit, or even at a loss. Even so, the main force will definitely be willing to pull up significantly after recollecting chips at the bottom.

Second, it is at the relative bottom of history. Some stocks have risen 20 times in one breath in two years, from one dollar to 20 yuan, even if it fell to 14 yuan later, it seems to have fallen by 30%, but in fact it is still at a relatively high level in history.

Of course, those stocks that rose many times five or six years ago and then fell for two or three years in a row can be relatively tolerant of the selection criteria. After all, after five or six years, it is possible to change the village, and the cost of the new village will have to be recalculated. And even if there is no change of village, the money earned by Lao Zhuang has already been calculated as the principal, and if he wants to make money in the future, it may rise again.

The third is to absorb chips sideways for a long time. This time can be a few months or several years, but at least more than three months, preferably more than half a year. After all, after a sharp decline, unless the main force makes a few price limits and then fluctuates sharply, to pull up and open a position, it will not be able to collect too many chips in the short term. And when the main force began to build a position at the bottom, it was basically quietly entered the village, and those who shot were not allowed to shoot, and it was rare for the stock to see the bottom of history and suddenly pull it all the way up in the form of a V-shaped reversal.

Therefore, a long period of sideways chip accumulation at the bottom of history is an element, and as for when the chip collection ends, it can be observed in conjunction with the chip distribution column.

In the bear market of 2008, many stocks fell all the way, and the chips that were originally concentrated at the top will also be dispersed downward, forming a series of protrusions like wolf teeth, which are all chips that retail investors are covering their positions at different prices and trying to spread the cost, just like from the top of the mountain to the halfway up the mountain, and then to the bottom of the mountain, there are retail investors standing guard all the way.

And when it goes sideways at the bottom of history for a period of time, especially after a period of ups and downs, those chips at high and relatively high levels will gradually magically disappear.

For no other reason, patience.

Once many retail investors have a few points of profit in their hands, they are eager to cash out immediately. But when I was covered, I always used all kinds of fantasies to comfort myself: "It's okay, it won't be long before it rises back." As long as you don't move, sooner or later you will get back to your roots. ”

However, this comfort, as the stock price continues to fall, will gradually become ineffective. The psychology of retail investors will also change from worry to fear and despair, and finally to numbness, simply not looking at stocks.

But one day, the stock suddenly rose, so the numb heart had another hope. It's a pity that the stock didn't go up much, and it fell back again. After a while, it went up again, it fell again, and the cycle repeatedly......

As a result, the mentality of retail investors has changed again, turning into fear, for fear that the stock price will fall back after a small wave, or even more, and then hit a new low. At the same time, they are no longer optimistic about this stock, thinking that it will never have a chance to turn over, so they forget the various reasons why they were optimistic about it in the first place, empathize with it, and look at other stocks that have risen well, and feel that if the stock exchange operation, maybe they can quickly earn back the principal.

Together, this thought fell into the trap of the banker, who just wants to make you desperate and make you give up.

Time can change a qiē, including perceptions, including feelings, and retail investors finally handed over their chips in a long bottom sideways.

At first it was a few people who did it, and then many people ......

Eventually, the main force finally collected enough chips, and the chips above the chip distribution bar basically disappeared and were concentrated in the low position. Zooming out of the candlestick chart, it looks like a long needle.

But will you be able to enter at this time? Not yet, because the main force may still want to collect more chips, and it is still too early to enter at this time, so there is a fourth principle.

Fourth, the over-falling safety stocks that have just started the volume and are arranged by the moving average bulls.

The reason why the volume is required is because it is a sign of the start of the main force. The reason why the moving average is required to be long is because at the bottom, the moving average is basically repeatedly wound and entangled. Only after the official start of the rise, the long-term moving average is ranked below the short-term moving average, showing a bullish arrangement, which shows that the long-term holding cost and short-term holding cost of the market have reached the standard of the right time and place, and can strongly support the long-term rise of the stock price.

Otherwise, there will be a lot of moving averages suppressed above, so the stock price will not go far, and it will repeatedly shock and grind the bottom.

And if you grasp these four principles, you can basically sit on the sedan chair that starts with the main force.

Of course, there is also a difference between the first type of buying point and the second type of buying point.

This involves entanglement theory, which is relatively complicated. (To be continued......)