Chapter 7: Grapevine

It took Lu Fanhong a few days to finish reading the e-book that Li Xin sent him.

This is a literacy book that introduces the basics of stock trading. It mainly talks about the moving average system, trading volume, strength and weakness indicators, sentiment indicators, listed company fundamentals and other stock analysis methods.

For new shareholders like Lu Fanhong, it can be regarded as a poor peasant who has met the Communist Party, and his heart has become more and more open.

He turned on his computer every night and used his stock Yonghui supermarket as a demonstration to analyze the trend of the past few years on a candlestick chart.

If there was something he didn't understand, he sent WeChat to ask Li Xin for advice.

A few days later, Li Xin found that the questions he asked were already a bit professional, and she, the teacher, was a little overwhelmed.

Lu Fanhong's IQ is indeed not ordinary.

For a long time, he has summed up a unique set of learning methods, linking theory with practice, first asking questions, and then finding answers little by little.

What does moving average mean?

Why does the moving average help to rise and fall?

What does a change in volume indicate?

Why are stocks going up and why are they falling?

He selected hundreds of stocks for K-line analysis of popular stocks, unpopular stocks, large-cap stocks, and small-cap stocks in the past year, and finally found out the answer.

The moving average represents the short, medium and long-term average cost of the stock price.

The moving averages are aligned upwards with bulls, indicating that sentiment is high and the stock price will rise along the short-term moving averages.

Conversely, the moving average is down.

Changes in trading volume are the determining factor in judging the rise and fall of a stock.

If the stock price is lower than its own value zone, and there is more money to buy than to sell, the stock will rise. Otherwise, it will fall.

After repeated analysis like this, he basically entered the door, but he still couldn't figure out some questions.

For example, some stocks have a lot of trading volume, why do they fall? Some stocks will have a limit if there is no trading volume?

Some stock moving averages diverge downward, why do they suddenly rise to the limit?

There are also some stocks with high price-earnings ratios, why do they continue to rise wildly?

And some stocks with excellent fundamentals are not rising?

He also asked Li Xin these questions that he couldn't understand, but the professional's reply could not satisfy him.

Li Xin finally told him in general terms: It has a lot to do with the intention of the bookmaker, the level of the stock price, and the stimulation of the news.

It's normal, the time is too short, and Lu Fanhong is not mature enough to dance with Zhuang.

Staying at home on weekends, Lu Fanhong sat in front of the computer and pondered. Fluttershy doesn't bother when she sees him obsessed.

Suddenly, he stood up and excitedly told her: "Wife, it's back to basics!" ”

"Back to what?" She asked, puzzled.

"We don't lose money, wife, you see, we have earned more than a thousand." He said, pointing to the computer screen.

Fluttershy looks over, "Oh yes! The account profit is 1818 yuan. ”

"The new stock listing has been limited for 4 consecutive days, and Yonghui Supermarket has also rebounded by 8 points." After speaking, he hugged his wife and kissed him hard.

Fluttershy is apprehensive about trading stocks, but she is also infected by her husband's joy, and she hugs his head......

"Wife, we won't cook today, how about going out to eat hot pot?" He proposed.

"Okay! Let's celebrate. She was also very happy.

The two put on down jackets and walked hand in hand to the gate of the community compound, but they met their neighbor Dakui head-on.

"Oops! The two of them are so slimy, where are they going? Da Kui asked with a grin.

"Let's go eat hot pot, let's go together!" Fluttershy invites.

"I'm going to be a light bulb, okay?" Da Kui was a little embarrassed and pulled his hair.

"Let's go! All good brothers. Lu Fanhong grabbed his clothes and dragged them out of the gate.

"Brother let go, his clothes are torn! Go and go. "Hot pot is Da Kui's favorite, and he is polite, but he has long wanted to go.

The three of them walked towards a Chongqing hot pot restaurant with a smile and a smile.

They sat down, ordered a good meal, and asked for a few beers.

"Brother, how is the stock during this time?" Da Kui asked eagerly.

"It's okay, no loss, a little bit of money. What about you? Lu Fanhong said lightly, but he was very proud in his heart.

"I bought a pork stock on Monday, it went up a little bit that day, and it started falling the next day. It's been down for a few days, and it's lost 12 points. The more Da Kui spoke, the more angry he became.

Lu Fanhong found the pork stock on his mobile phone, looked at the technical graphics and indicators, and said to Dakui: "Pork stocks soared in the early stage, too far from the five-day moving average, the value returns, and it will definitely fall." ”

"Whew! After a few days of not seeing, my brother has become an expert, and he is very honest. Da Kui looked at Lu Fanhong in surprise.

"The price of meat has also risen to the end, and it is impossible to continue to rise, and the people can't afford to eat it if it rises again. Therefore, the general trend of this stock will go downward. ”

Da Kui's eyes turned green when he heard this, and he was so impressed that he threw himself to the ground.

Fluttershy can't stand it anymore: "Just pretend!" It's not that I've seen too many stock reviews, and I'm fooling. ”

"He has a point!" Dakui gives a thumbs up and looks at Fluttershy.

"Wash, scrub, scrub!" Lu Fanhong's cell phone rang. As soon as he saw that it was Li Xin, he quickly connected.

"Old classmate, I have good news for you." Li Xin looked mysterious on the phone.

"What's a good thing? Share it! Lu Fanhong had a hunch that joy fell from the sky.

"The boss of our company told me that a stock will rise by 50% in the near future."

"What stock? Tell me okay? ”

"You've got it in mind, ***."

"Remember, thank you, old classmate, when you are free, please have a big dinner."

"Okay, bye-bye!"

When they hang up, Fluttershy and Dakui are speechless. He actually has an inside line!

When the dish came, the red soup was tumbling and fragrant. The three of them chatted while eating, and their faces were flushed with alcohol.

Lu Fanhong was afraid of drinking and making mistakes, so he deliberately wrote down the name of the stock in WeChat.