Chapter 168 Bearish when it goes up, Bullish when it falls

After a while, Healthy Life appeared, and said unhurriedly: "I really don't have any experience to share, in fact, it can be summed up in eight words, reverse thinking, adhere to principles." ”

"How?" Ding Xu asked curiously.

Next, Healthy Living shared some of his thoughts.

Healthy life believes that being bullish when it rises and bearish when it falls is the principle of judging the market trend of most retail investors, but most retail investors lose money, so this judgment principle should be wrong.

If you want to make money, you should be good at using contrarian thinking, such as "bearish when it goes up, bullish when it falls." ”

A blogger named Zen in the Entanglement once said something similar, to the effect of: "When it goes up, you have to think about selling points, and when it falls, you have to think about buying points." Otherwise, it is not engaged in stocks, but by stocks. ”

Although the words are a little vulgar, the truth is very profound.

For example, when the top market is crazy and the indicator is bought, you should clear your position in advance, so that although you may lose some profits that continue to rise at a high level, you can also avoid many risks.

As long as you have this kind of psychological preparation, you can see that the index continues to rise after the clearance, and you can not be excited, impatient, or chase the rise, but just be a calm spectator. Because you have earned the profit you should make, you are successful, and then you might as well take a break and see how others are gambling at the top, which is also an interesting thing.

On the contrary, when the bottom market is sluggish and the indicator is selling, you should overcome your psychological fear and boldly open a position.

With this psychological preparation, even if the market will fall later. Hold yourself. But you can still be a calm spectator. Because it's just a golden set. Buying in advance can prevent future short-selling, and basically guarantee that you will start making money one day in the near future.

Of course, this is not blindly reverse thinking, but has a technical and fundamental basis.

The basis for a healthy life, in addition to the analysis of fundamentals, is technical, mainly to look at the time-sharing slow KD indicator to grasp the general trend. At most, the K-line and moving average systems are supplemented by references.

In addition, he always chooses to operate individual stocks when the market index is trending upward, and if the market is trending downward, he will take a short position to rest.

For example, this time, seeing that the Shenzhen Component Index began to sell, and the slow KD indicator on which he used as the basis for judgment began to be double-headed, he decisively cleared his position and waited for the next entry opportunity.

So far, this operation is obviously relatively successful, avoiding more than 12% of losses.

"I'm curious. A single indicator cannot completely accurately judge the market and individual stock market, and it is at most 8o% certainty. So I always try to use a few more technical indicators. Strive to form a technical resonance, so that the grasp is greater, and will not be deceived by the bookmaker. ”

Hearing this, Ding Xu couldn't help but interject, "In addition, many people say that they want to throw away the market and make individual stocks, but you are focusing on the index to make individual stocks, can you tell me why?" ”

"With an 8o% success rate, you should be satisfied, how much more can you ask for? Even if the technical indicators can form a resonance, I don't think it will be more than 9o%, right? "And there are always a few opportunities for technical indicators to form resonance, most of the time, technical indicators will not only not resonate, but will conflict, fight, and confuse." So after experiencing this confusion and confusion a few years ago, I recognized a truth - stock trading, in fact, the simpler the better. ”

"What's as simple as possible?" Ding Xu nodded thoughtfully, and then asked again.

"To put it simply, we always insist on using simple indicators and simple analysis methods. Because the more indicators you know, the more complex the factors considered, and the larger the reference system for buying and selling stocks, the more difficult it is for you to control and control. If the indicators fight, you follow the direction of most indicators, which is actually unscientific. ”

Healthy Living explains, "Every time you make a decision, you base it on different metrics. For example, this time, you are relying on the common direction of MACD, KDJ and Bollinger Bands, and next time, you may just deny the direction of these three technical indicators, relying on other indicators, which is not really a scientific method. Moreover, on what basis do you think that the conclusions you draw with 8 indicators are correct? If you use 16 indicators, 32 indicators, will you come to completely different conclusions? ”

According to the understanding of healthy life, there is only one truly scientific technical judgment method, that is, what index is used as the entry standard, and what index is used to make the exit standard. The resonance method of Ding Xu's technical indicators has actually deviated from this principle, because the indicators that form resonance are different every time, and the number of indicators used each time is also different, maybe 8 this time, 1o next time, so it is too arbitrary, not quantitative enough, and not scientific enough.

And if you use a simple judgment method, mainly based on one indicator, then it will be more effective and accurate, there will be no confusion of indicator fights, and there will be no situation where you can use various indicators as you like.

After several years of practice, Healthy Life feels that it is the most convenient and accurate when using the slow KD indicator, so it always insists on using this indicator to judge the market - whenever the market is 12o minutes slow KD to the top, it is ready to sell stocks at any time, and when the market is 12o minutes slow KD to the end, it is ready to buy stocks at any time.

This is the determination of the general direction of the market. After determining the general direction, he will determine the short-term buying and selling points according to the 6O and 3O minutes and 15-minute slow KD indicators.

In order to make up for the shortcomings of just looking at one indicator, Healthy Life will also use K-line and moving average patterns as auxiliary reference methods.

It can be said that he operated according to the plan and strictly implemented operational discipline. Because only this one indicator is used, there is no zĂ i indicator to fight, so it is extremely simple to enforce operational discipline, as long as you are decisive enough, there will be no problems.

Of course, this judgment method is only applicable to the market when it is rising or the box is volatile, not when it is falling unilaterally, otherwise it is easy to fail in the bottom copy.

In this way, he basically gave up the complicated economic and financial theories, and also filtered out the complicated on-site and off-market information, and the trading mentality became bold and stable, and the operation was free, and there was more fun in stock trading.

As for the issue of keeping an eye on the market and making individual stocks, it is because Healthy Life believes that at least 8o-9o% of stocks are consistent with the changes in the index, so he does not believe in the "putting aside the market and making individual stocks" advocated by stock critics, but always insists on keeping a close eye on the index and making individual stocks.

When the slow KD indicator of the market peaks, no matter how hot the market is, he will be ready to take a short rest for a while. And when the market indicators are in the end, no matter how bad the shape is, he will be ready to buy stocks and wait for them to rise.

He never guesses how far the market can go, nor does he guess which point the market will fall to, all his thoughts are to see where his KD indicator has been, and then buy and sell individual stocks according to the signals generated by the indicators.

In other words, he only eats the head and body of the fish, not the tail.

The secret of a healthy life is to be content and happy.

Every time he made money, he thought he had completed a successful money-making operation. Even if the stocks sold are still rising, he also thinks that he has nothing to do with him, and he will not be worried about his stomach and waste his feelings like a lover.

Now that it is out, consider other low-priced stocks, because there are many good stocks, and the most important thing in the stock market is opportunity.

Even if he didn't find an investment opportunity for a while, he was not in a hurry and took a break first. I won't be able to resist the temptation, seeing that the stock continues to rise, and under the domination of regret, I rushed in at a high position again, guided myself to be trapped, and spit back the profits I had gotten.

Healthy Life believes that after selling stocks, chasing higher again is one of the biggest reasons for retail investors' losses, that is, they are not good at being an audience who patiently watches the main performance, and always want to be the protagonist themselves. When the stock falls sharply, it is always very timid, and when it rises very high, it is particularly bold, so it is frightened to flee in panic when the main force is washed, and it is excited to enter when the main force is at the top, so that the reverse operation with the main force will naturally avoid losses.

He also believes that Ding Xu's sentence "stock trading is also a kind of practice" is very good, and he has been cultivating his stock trading mentality in the past few years.

By now, he has been able to maintain a contented mindset. Whenever you complete a successful operation, you will always maintain a good attitude and wait patiently for the next opportunity. And if the judgment is wrong, the stop loss will be stopped in time, as a lesson, and will not change their operation methods lightly. (To be continued!)

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