A Red Candle Welcoming Spring Teaches One-Track Minds a Vivid Lesson

2008/2/5 15:09:59

This ID said before that three consecutive up days before the holiday is not allowed, and two days would depend on weekend news and the degree of oil's erratic behavior. Yesterday, there was good news and the market went up. But today's oil — someone was frantically dumping it as if oil were free. With things this absurd, how could we possibly close in the green?

One-track minds — they're either acting with ulterior motives or have water in their brains. If you can't break free from one-track thinking in market operations, your fate needs no discussion.

The technical issues were laid out very clearly yesterday — after the line segment-type divergence, a 1-minute hub must necessarily appear. After the holiday, just watch how this hub evolves. It's that simple. No one-track thinking is needed. For the medium to short term, it's still a consolidation trend around the hub near 4500 points.

Take a good look at how truly large capital operates. Many of you have probably forgotten about 580989. Look at today's price action — any thoughts? A long holiday, a prudent large capital — of course they would hedge effectively like this. Many times, uncertain factors must be resolved through hedging. This way, no matter what happens overseas during the Spring Festival, you can eat and sleep well.

Of course, for small capital, instruments like 580989 carry too much risk and aren't worth participating in. Small capital doesn't necessarily need to hedge — instead, leverage your own agility and flexibility. If things look uncertain, exit a portion first. With cash in hand, there's nothing to fear.

Greed always hopes the market moves according to one's desires. That's duck-fart thinking — without changing it, there's no way out.

To summarize in one sentence: in any uncertain situation, the only correct approach is to control your position size. If you can freely control your position, your skill level goes up a notch. Controlling your position doesn't mean you must go fully to cash — it means keeping your position at a level where you can react adequately if something unexpected happens.

Anyone who tries to squeeze out the last penny will ultimately end up losing everything.

It's a holiday — let's not talk about these things. But the cruelty of the market doesn't take holidays. Those who think Spring Festival must have green candles, or the Olympics must bring a big rally — wake up.

It's a holiday — put aside stocks and enjoy life. Your body, your family, your parents, your loved ones are a hundred million times more important than stocks. Cherish them.

Signing off, see you later.