The legendary woman who was reborn from the ashes

Chapter 10 The main rising wave triggered by the double negative line

Investors who have been trading for many years will find that in most cases, winning or losing money has little to do with your skills. What really determines your gains and losses is your cognition.

Think about it, if your perception is correct, why don’t you have what you want in your pocket!

I have been talking about some things in cognitive theory, but new investors who have just entered the market often do not pay attention to the importance of cognition in trading.

Because 80% of the important things come from cognition, and technology only accounts for 20% when trading. However, most traders attach great importance to this 20%. After entering the market, they spend most of their time on learning the 20%, while ignoring the importance of improving the 80% of cognition.

It’s not that technology is not important. When the vast majority of people put 80% of their energy into researching technology, in real transactions, once the cognition is wrong, even the most perfect technology is just an empty shell.

Once, when Jiang Juan was chatting with an investment colleague, she found out that this friend entered the market at about the same time as her, but was already doing very well in trading. It can be said that Jiang Juan really felt that she had a new appreciation for him. When they were drinking tea and chatting together, he talked a lot about his own views on trading, and none of them were related to technology. He focused on the changes in his mindset over the past few years.

When he first entered the market, he, like many other traders, worked hard to study stock market techniques. But later he found that when it came to actual practice, many of the techniques he had figured out were far from reality.

Recalling that painful trading experience, he really didn't want to open an account. The trading results of more losses than gains made him lose confidence in trading for a time.

Since the techniques he researched were not worth the effort in actual combat, he found that he was competing with himself 80% of the time.

Later, after readjusting my cognition and adjusting my mindset, all problems were solved.

In the past, he felt that stop-loss was particularly painful. If the profit of a stock did not meet his expectations, he would sell it after it rose a little. However, the stock rose a lot again after he sold it. He would feel conflicted and uncomfortable, and could only sigh and not know where to start.

Although the technology from a few years ago is not much different from the current technology, people's cognition has improved, and the whole person's state when trading is completely different from that of a few years ago.

He said that anything that can be defined technically can be tested in quantification. After being quantified and tested in trading, it was found that mechanically copying these things is basically useless, so it is not the technology that is really great in trading, but the person who does the trading.

The person who does the trading is awesome. Under the guidance of his cognition, any technical signal is just a weapon in trading.

For example, there is a great player in all previous stock market competitions. His short-term trading is so simple that he only looks at yesterday's highest and lowest prices, closing price, and opening price.

However, some judges were surprised how such a simple trading technique allowed them to make a profit.

The judges analyzed their trading orders and tested them using quantitative methods. They found that if quantitative techniques were used for trading, the returns would be mediocre and there was nothing particularly surprising. However, these great traders could actually multiply their profits several times a year.

What is the difference? Everyone wants to know the reason, which is actually the difference in cognition between people.

Cognition is something that cannot be seen or touched, but it is deeply rooted in people's bones.

The awakening of cognition is the beginning of a person's strength.

When your cognition reaches a certain level, you will have a deeper understanding of the entire society and the world. At this time, you will find that creation and making money are particularly easy and interesting.

When looking at anything, you can see the essence of the matter at a glance and handle things handy and with ease.

If a new stock investor wants to learn trading techniques, he or she can learn them in three to five years. In fact, what is really important is the understanding of the capital market. When your understanding reaches a certain level, you can easily make the right decisions and choices in a game market.

Mentioning a big negative line, or even a big negative line with multiple volume, often triggers fear among investors. If the stock price runs below a big negative line with multiple volume, it will be like a mountain pressing down on the top of the head and will continue to fall.

At the beginning, Jiang Juan was like most investors. She would avoid the big negative lines in time and had great psychological fear.

In fact, if a large negative pattern with double volume appears after the daily limit, its logic is completely different. This big negative refers to the main force using chips to break through the previous intensive trading platform with the daily limit, and then open high and close low the next day, releasing a large trading volume in recent times.

Although the large negative line has double the volume, it has not broken through the low point of the daily limit. This shows that the main force is taking on a large number of selling orders. As long as the stock continues to rise strongly after the double-volume negative line and the closing price breaks through the highest price of the double-volume negative line, you can pay attention and choose the opportunity to enter the market.

After fully understanding the big Yinxian, there are different ways to operate the big Yinxian. Not only are we not afraid of the big Yinxian, but we are looking forward to seeing such a big Yinxian frequently, and then we can enjoy the main rising wave triggered by the big Yinxian.

Specific operation instructions:

1. The overall stock price is in the early stage of rising. Before the double-volume negative line appears, there must be a big positive line or a daily limit to break through the previous platform and confirm that the trend has been effectively broken.

2. The next day, a negative line appeared that opened high and closed low. The trading volume was the largest in the recent period, but the correction did not break the low point of the daily limit, indicating that there were differences in the stock price, but the support was effective.

3. After the double volume Yin line, a big Yang line appears again, and the closing price completely breaks through the highest price of the double volume Yin line. The trading volume of this breakthrough big Yang line is smaller than the trading volume of the double volume Yin line.

4. After the double volume negative line, the stock price falls back to the 5-day moving average, which is a signal to enter the market in batches. The stock price breaks through the high point of the negative line again, which is the pursuit point. The breakthrough of the positive line must be completed within six trading days after the double volume negative line.

5. Take the low point of the daily limit as the support level. If the callback breaks, it is necessary to avoid it in time.

The stock market is like a battlefield. When you are not completely sure, the best strategy is to learn to hold short positions.

Case: Uni-President Shares, the large negative line with high volume that appeared on November 2023, 11, fully met the above conditions. In the next 13 trading days, 5 stocks hit the daily limit.

(The above stock cases are past tense and do not constitute investment advice)

Masters all understand the wisdom that goes against human nature. Almost all masters think in reverse, doing the opposite of 99% of people. I take what others discard, and I give what others take.

They know that the opportunities that the vast majority of people see are definitely not opportunities. They are desperate to take a chance that 99% of people are not optimistic about, because the truth is in the hands of a few people.

Perhaps this is the highest realm of cognition. Cognition broadens the horizons of investors. When you use reverse cognition to discover and interpret this big Yin, the big Yin will also become wealth in their eyes.

Reverse thinking, also known as reverse thinking, is a way of thinking about problems. It requires us to look at problems from a perspective opposite to the norm. This way of thinking can help us break through the traditional thinking framework, discover new solutions or understand the problem more deeply.

In the field of philosophy, reverse thinking is often used to challenge traditional ideas and assumptions to promote the development of theories. In epistemology, reverse thinking can be used to question our understanding of knowledge and explore the limitations of knowledge.

A key advantage of reverse thinking is that it can help us discover new perspectives and solutions. When we look at a problem from the opposite perspective, we may discover new associations and causal relationships, which can generate new insights and ideas.

In addition, reverse thinking can help us avoid falling into a fixed mindset and improve our innovation and problem-solving abilities.

However, reverse thinking also has its limitations. Sometimes looking at a problem from the opposite perspective may lead to misunderstanding or misleading.

Reverse thinking requires high critical thinking skills and creativity, which may be difficult for some people. Therefore, when using reverse thinking, you need to carefully evaluate its applicability and combine it with other ways of thinking to achieve the best results.

People who have improved their cognition will have super talents and can do anything with more efficiency than ordinary people.

A genius is someone who can constantly push himself into the pursuit of perfection, and in the process of constantly training himself, he can tap into more energy and talent. Their greatest gift is not talent itself, but strict self-discipline and high-intensity efforts.

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