Started Buying Stocks at Today's Close

2008/3/18 15:16:32

A lot of people seem very eager to know about this ID's operations. Today, I can make a public announcement: at today's close, this ID began buying stocks.

The daily market action has always been described very clearly by this ID. For example, yesterday I made it crystal clear that today there would be another wave of desperate selling from those giving up hope on the press conference, and the press conference itself would produce a period of fluctuation. All of this was very clearly reflected in today's price action — just look at the sell-off after the press conference. Was that not exactly what I said?

This ID was waiting for precisely these people to sell out. Once they've sold, everyone who had any illusions has had those illusions shattered. At that point, as I said yesterday, the market starts to get interesting.

Therefore, this ID began buying and covering the first batch of stocks at today's close.

However, this sell-off process could very likely devolve into extremely irrational situations. So for those with large capital, you can use a phased position-building strategy combined with swing trading. That is, once you have a sufficient base position, keep that portion untouched while using other funds for swing trading to bring down your average cost.

For small capital, you can use technical charts to find more precise buy points. But large capital cannot achieve that level of precision, and right now, for large capital, starting to build positions from today's closing low is already sufficient.

This ID has said many times that this year there are pitfalls everywhere. These pitfalls could be graves, or they could be opportunities — the key depends on your skill level. Handle this pitfall well and the returns will be substantial. This ID has also repeatedly stated: This year's trading is manual labor — you must constantly trade back and forth. Those who just hold stocks waiting for a one-way rally can just wait to go die. Don't you remember this ID told you at the end of last year that the vast majority of stocks this year would end with annual bearish candles or long upper shadows?

If you don't have the skills for constant swing trading, this ID gave you the best refuge long ago: the little stool. If you think your skill level is good enough to skip the little stool, only to get beaten black and blue by the market, then you'd better go study this idiom: self-awareness.

The stocks to build positions in are still low-priced stocks, preferably those with short-term declines exceeding 40% — these are the best candidates to play with. Go search carefully.

Alright, we're gradually entering the window where it's time to get to work. Those with the skills should start gearing up; those without should continue sitting on their little stools.

Signing off for now, goodbye.