Key Stocks with Major Positions: Telltale Signs & Ready to Soar!

• Article
• 2024-08-17
• 19 Comments

After years of struggling in the stock market, from losses to profits, I have finally summarized these points, hoping that everyone can gain insights from them: The stock market is as unpredictable as the weather, with many excellent investors, yet there is no eternal winner.

Some strategies and methods in the market can be used for reference, but it is essential to understand that even the most profound ideas of others are still theirs.

The most critical aspect is how we find the most suitable methods and techniques among the vast sea of options and then transform them into our own investment style.

Therefore, any investor who enters the real battlefield must integrate the accumulation of knowledge with practical operations, continuously adjusting their investment strategies according to their style and characteristics.

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Over time, this will help them develop a stable set of methods and techniques.

Retail investors, regardless of the size of their capital, must cultivate three abilities.

Note that these three abilities do not require talent; with enough diligence, even novices can acquire them through learning and training.

First, understand the logic behind different patterns and trends.

Different patterns and trends represent different market languages.

Once you understand and learn them, you can read market information and achieve a decisive victory in the market, surpassing most people.

Second, learn logical deduction, using factual results to analyze the logic of stock price operations.

Note that this logical deduction should not only be able to verify past market conditions but also predict future trends.

Third, plan before you act, fight prepared battles.

In simpler terms, plan your trades and trade your plans.

As the saying goes, the greatest truths are the simplest.

Stock trading is also a process of simplifying complexity.

By learning and accumulating technical knowledge, such as moving averages, patterns, Dow Theory, Elliott Wave, and so on, you eventually discover their common points, all of which are based on price K-lines.

Eliminate all external factors, and what remains are capital and price fluctuations.

Once you see through the essence of trading, you will operate with ease, and your success rate will greatly increase.

A-shares: Whenever the main force builds a position, without exception, such patterns and trends will appear: - Horizontal construction - Breakdown and decline to wash the market characteristic: Horizontal construction - Volume expansion after breaking through the box pattern - Feature: Volume expansion after breaking through the box pattern followed by a reduction in volume and a retest of the upper edge of the box - Feature: High-rise construction - Volume reduction and a pullback to half of the high-rise wave with a clear stop signal - Feature: High-rise construction - Volume reduction and a pullback to half of the high-rise wave with a clear stop signal - Feature: High-rise construction - Breakdown and decline to wash the market, Golden Pit or Round Bottom characteristic: