Teaching You to Trade Stocks 41: Without Rhythm, Only Death
2007/3/30 15:17:22
The market has only one rhythm: buy at buy points, sell at sell points. Such a simple principle, yet how many people can actually follow it? What stops you from listening to the market's rhythm? Your greed and fear. Buy points always form during declines, but fear stops you; sell points always appear during rallies, but greed stops you. A person dominated by greed and fear has only one fate in the market: death!
In the market, stocks at buy points are good stocks, stocks at sell points are bad stocks — any classification of good and bad beyond this is nonsense. Your fate can only be grasped by yourself — no one is worthy of trust, not even this ID. The only thing worth trusting is the voice of the market, the rhythm of the market. This requires you to listen with your heart — with a heart that has conquered greed and fear.
The voice of the market is always in the present. No matter how brilliant one's past, in the current market, one is nothing. The moment greed or fear blocks your ability to listen to the market, that person has walked through death's door. Unless they can wake up abruptly, what awaits is only: death. Remember, 1 trillion and 10 thousand reach zero at the same speed — the former can even be faster.
Buy at buy points — buy points only exist during declines. No stock is worth chasing upward. If you chase and get trapped, you deserved it. Sell at sell points — no stock is worth panic-selling into a drop. If you want to lose weight, then go ahead and get used to cutting positions into the decline. Even if you don't understand what buy and sell points are, there's one thing you must understand: don't chase rallies and don't panic-sell. Even third-type buy/sell points are formed during pullbacks and bounces respectively — where's the need to chase rallies or panic-sell?
Buy and sell points have levels. When large-level energy hasn't been exhausted, a small-level buy/sell point triggering the continuation of a large-level trend is perfectly normal. But if a small-level buy/sell point goes against the direction of a large-level trend, and that large-level trend shows no sign of exhaustion, then participating at that small-level buy/sell point means risking the continuation of the large-level trend — this is classic licking blood off a knife's edge. The market doesn't require frequent trading — conquering the market requires accuracy, not trading frequency. Only brokers and tax authorities benefit from high-frequency trading.
The market is not a casino — market operations can be meticulously planned. When you buy, you must ask yourself: Is this a buy point? What type of buy point at what level? What does the large-level trend look like? What's the current hub distribution across all levels? What's the broader market doing? What about this stock's sector? The situation is similar for sell points. The more thoroughly you analyze a stock's situation, the more smoothly your operations will flow.
As for the judgment of buy/sell points and how to improve precision — that's a matter of theoretical study and continuous practice. But this set of procedures and rhythms will never change. Precision can be improved, but rhythm must not be disrupted. Rhythm is more important than precision. Regardless of your skill level in judging buy/sell points, even as a beginner, you must hold yourself to this rhythm. If you don't yet have market intuition, force yourself to execute, or else, leave.
For beginners, you absolutely must not adopt small-level operations. Your precision in judging buy/sell points isn't high — if you then use small-level operations, not making mistakes would be the real miracle. For beginners, entering and exiting based on the 30-minute level is a good approach. Under no circumstances should the level be smaller than 5 minutes — if the 5-minute level hasn't even entered a divergence segment, you cannot operate. The smaller the level, the higher the precision requirement, and frequent trading leading to frequent mistakes will only make your mindset worse and prevent you from ever learning the technique. First learn to stand firm before considering walking — otherwise, trying to run from the start — is that even possible?
Rhythm — eternally, only the market's present rhythm. Anyone who opposes this rhythm will find only pain and torment awaiting them. Note, you must pay attention: so-called "good mindset" is not enduring the torment of a rhythm error like a masochist — you absolutely must be aware of this. Many people, after making a mistake, just grit their teeth and endure. In the market, this is completely wrong. In the market, there's always a chance to turn things around — the prerequisite is that you still have the capacity to fight. Once you discover a rhythm error, the only correct thing to do is get back in rhythm. For example, if you miss the first buy/sell point, there's still the second buy/sell point. If you miss even the third buy/sell point — missing three consecutive times — you'd deserve death.
Why are there three types of buy/sell points? The market is too merciful — it gives you three chances to correct your mistakes. If even this can't be corrected, then go rest, go drink tea. Three chances and you still can't correct, still making the same mistakes — if you're not resting and drinking tea, what else can you do? Those people who ask whether they should buy after a stock has risen N-fold, or even chase and buy high — what more can be said? Can you really not see the buy point even after it's risen N-fold? Watching many retail investors still betting on the next supposed limit-up after continuous rallies — I can only say bluntly: you deserve to die.
The market is cruel — for those who attempt to defy the market's rhythm, the market is their graveyard. The market is beautiful — the market is Bach's fugue, within which lies the rhythm of life. Rhythm — it is forever the market's rhythm. A market participant without rhythmic sense will forever be tormented. Cast aside your greed and fear and listen to the market's rhythm. It's the weekend — put everything down and listen to nature's rhythm, life's rhythm, music's rhythm. Then come back and listen to this market's rhythm. Dance with the market, and your greed and fear will peel away one by one, leaving you radiantly clear.
Appendix
Today's market is acceptable for both sides. The traitors couldn't pull off their desired long bearish candle, while the monthly and quarterly candles having slight upper shadows is also acceptable to this ID. Going forward, oscillation continues — after all, the traitors still have the strength to create lower shadows in the next monthly and quarterly candles.
For this ID, playing another round of oscillation and consolidation above 3000, similar to below 3000, is most advantageous. When it comes to oscillation games, the traitors aren't very skilled. Meanwhile, management and retail investors both have altitude sickness that needs time to cure.
On the individual stock front, third-tier stocks have been flagged by regulatory warnings, and using first-tier large-caps for fighting over the index won't be accepted by retail investors — these past two days are proof. Therefore, second-tier stocks are the best balance — everyone can accept them. Some second-tier stocks with medium-term potential have already made new highs — that's the spark. Whether it becomes a wildfire is another matter.
I have a meeting at 4 PM, must go. Signing off, goodbye.
缠中说禅 2007/3/30 15:25:08
Today's market is acceptable for both sides. The traitors couldn't pull off their desired long bearish candle, while the monthly and quarterly candles having slight upper shadows is also acceptable to this ID. Going forward, oscillation continues — after all, the traitors still have the strength to create lower shadows in the next monthly and quarterly candles.
For this ID, playing another round of oscillation and consolidation above 3000, similar to below 3000, is most advantageous. When it comes to oscillation games, the traitors aren't very skilled. Meanwhile, management and retail investors both have altitude sickness that needs time to cure.
On the individual stock front, third-tier stocks have been flagged by regulatory warnings, and using first-tier large-caps for fighting over the index won't be accepted by retail investors — these past two days are proof. Therefore, second-tier stocks are the best balance — everyone can accept them. Some second-tier stocks with medium-term potential have already made new highs — that's the spark. Whether it becomes a wildfire is another matter.
I have a meeting at 4 PM, must go. Signing off, goodbye.