At 3 AM when I monitor the market, I often think of myself three years ago, squatting in the hallway smoking, with my account down to just instant noodle money. My wife sent me the message about the baby formula bill, and the screen light reflected my stubbled face. Today, I dug out my trading insights from the bottom of the box. I'm not here to teach you how to double your account overnight; I want to help every brave soul trying to support their family through trading to avoid the pitfalls I encountered back then.
Let me pour some cold water on you: don't be a 'vegetable model', the wrong direction will only lead to more suffering.
When I first entered the market, I was more diligent than anyone, getting up at dawn to watch foreign markets and taking notes after the close. Yet, I still got ground into the dirt by the market. It wasn't until later that I realized trading isn't about stamina; it's about 'anti-human cleverness'. The following 10 points are the practical insights I gained after losing 200,000; each one can help you avoid falling into a trap.
1. Strong targets experiencing 9 consecutive days of decline shouldn't make you panic. This is the market's opportunity for correction. I used this tactic last year to catch a rebound and earned enough for my child's early education expenses. The premise is to confirm that the trend hasn’t completely reversed; don’t mistake 'pullback' for 'collapse'.
2. If any stock has risen for two consecutive days, quickly take out the profits. Don’t be greedy thinking 'it might rise further'; I’ve seen too many people turn floating profits into floating losses, just like holding onto a piece of ice—the tighter you grip, the faster it melts.
3. If a stock's single-day surge exceeds 7 percentage points, there’s a high probability of 'inertia'. But don’t be foolish and wait; set your take-profit line just like a hunter focuses on its prey—once it looks back, you must reel it in.
4. For those hot targets that have skyrocketed, don’t chase after their tails. It's like chasing a bus; the more anxious you are, the more likely you are to get caught in the door. Wait for it to arrive (stabilize after a pullback) before getting on, then you can sit comfortably.
5. If it has been flat for 3 consecutive days, treat it as 'hibernating'. If there’s still no movement after watching for another 3 days, quickly switch to something with more 'vitality'; time is more valuable than principal.
6. If by the end of the day, you haven’t even recouped the cost from the previous day, leave immediately. It’s like dating; if the other person keeps making you lose, why not break up quickly? Are you saving it for the New Year?
7. There’s a small rule on the rise list: 'three rises look for five, five rises hope for seven'. When it rises for two consecutive days, look for a low point to enter; by the fifth day, don’t be greedy; take the profits when you can, don’t wait for the market to give you a 'good person card'.
8. The relationship between volume and price is the 'soul mentor' of trading; it’s more reliable than any expert. A breakout on high volume at a low position indicates that funds are entering; pay close attention. If there’s high volume at a high position without price increase, that’s funds fleeing; withdraw quickly, don’t be a bag holder.
9. Only invest in targets that are 'climbing up': a 3-day line trending up is suitable for short-term quick in and out, a 30-day line trending up can be traded for the medium term, an 80-day line trending up is likely to be a main upward wave, and a 120-day line trending up means you can safely hold for the long term. Following the trend is much less exhausting than going against the wind.
10. Small investors should never feel inferior; I turned my life around with just 50,000 in capital back in the day. The key is to have the right methods, a stable mindset, and decisive execution. Stay calm before opportunities arise, and don't be soft when the opportunity comes.
