A friend who has been trading stocks for fifteen years, despite all the pressure, pain, and confusion, ultimately achieved enlightenment and streamlined his trading techniques. If you plan to stay in the stock market for the next three years and are determined to make stock trading a second career, you must read these eight ironclad rules. They are essential tips for supporting your family through stock trading. I highly recommend saving them!
1. Divide your capital into five parts and only invest one-fifth at a time. Strictly set a stop-loss of ten points. Even if you make a mistake, your total capital loss will only be 2%. If you make five mistakes in a row, your total capital loss will only be 10%. Conversely, set a take-profit of more than ten points and you won't be trapped at all.
2. When you're losing money, fix your stop-loss position and never lower it arbitrarily, or you'll be boiled like a frog in the boiling water! When you're profitable, continuously raise your stop-loss to preserve some of your profits.
3. Improving your winning rate requires only four words: follow the trend. Every rebound in a downtrend is a trap to buy, while every dip in an uptrend is a gold mine. Which one is easier to make money with?
4. Once you've achieved your goals, be decisive when entering and resolute when exiting. Never be indecisive or hesitant when trading stocks; it's extremely easy to get stuck.
5. Regarding trading during active markets, there are four basic criteria: the market must be above the annual moving average; trading volume must be above one trillion yuan; at least fifty stocks must hit their daily limit; and at least two thousand stocks must rise.
6. Don't add to your holdings after a loss! Before adding to a position, ask yourself: if you didn't already hold the stock, would you buy it? If so, then it's fine. If not, then don't add to it.
7. Don't become overly obsessed with short-term trading! Short-term trading requires stability, accuracy, and ruthlessness. Smaller fluctuations are harder to capitalize on. Remember, making big money depends on patience, not the number of trades.
8. Don't indulge in sadness when the market falls. At this time, look for stocks that are stabilizing against the trend or even rising against the trend, and add them to your favorite stocks. After observing and tracking them for a period of time, if the subject matter is good enough, the trend is stable enough, and it continues to rise along the middle track of the BOLL line, it may be a strong stock, so don't miss it.
