The legendary woman who was reborn from the ashes

Chapter 16 The essential tool for monster stocks - chip concentration

If the market is in a volatile bottoming situation, there will be many undervalued high-quality companies worthy of attention, and the bull stocks that may double in the future are hidden among them. They are everywhere. What is created by the decline is space, and what is created by the growth is risk. When the valuation is low, the price will naturally be appropriate, and the volume will naturally come. Big funds are waiting for a good price.

Many investors hope to participate at the bottom and sell at the top. However, it is really difficult for ordinary investors to do so.

In fact, there is no bull market or bear market for stocks, only strong and weak! The trading opportunities in the process of bull stocks finding the bottom are first to determine the long-term and short-term operation thinking for yourself.

If a bull market comes, how do we find the most explosive sectors? How do we find the leading stocks with the best growth potential in the explosive sectors?

If you are lucky enough to find the best-performing leading stock, what should you do? And what kind of confidence will make you hold on to it until the price reaches its highest point?

There are many ways to play the stock market, but the results are only two: winning and losing. If you want to succeed, this series of problems can be summed up in one sentence: learning is the only hard truth!

Among all the technical studies, using various conditions of chips to track a long-term bull stock is also one of the more systematic methods in the stock market.

Many trading veterans are very optimistic about the chip principle when selecting stocks. The bull stocks found by the veterans using the chip principle have a strong increase, soaring to the sky, and they have made a lot of money.

At the beginning, Jiang Juan, apart from her envy and admiration for these trading predecessors, knew nothing about the chip peaks on the trading software. When the mouse moved, the chip peaks would move with it, and even the peaks would become longer or shorter. The colorful colors were dazzling, and Jiang Juan could not understand the meaning of them at all, let alone how to grasp them.

Since the chip theory can bring huge profits to investors, Jiang Juan thought, why don’t I learn it?

Why does a stock rise? It must be the operation of big funds! So are there any clues to follow in the operation of big funds? The chips undoubtedly give investors a clear hint.

After taking the courses taught by Mr. Chen Hao, the founder of Chip Peak, I gained a deep understanding of Chip Peak.

"Ninety to Three" was proposed by Teacher Chen Hao a long time ago. It is the theoretical basis for identifying whether individual stocks have market makers.

What it means is: when more than 90% of the chips have made profits, and the daily turnover rate is less than 3%, that is, most people have made profits, but no one is willing to sell, which means that most of the chips are in the hands of the market makers.

If the stock price is not far above the concentrated chips in the early stage of the market, you can consider buying. If the stock price is far away from the concentrated chips area and continuously increases in volume or moves in a flat manner above, the chips are transferred from the bottom to the top and concentrated, pay attention to the dealer shipping!

After the market has bottomed out, a large number of future growth bull stocks and short-term dark horses will appear. Whether bull stocks or dark horses, they are inseparable from the coordination of trading volume and the concentration of chips. These medium and long-term bull stocks must have good company performance and growth in the industry they are in, which will attract the attention of funds.

When the main institution absorbs funds through continuous shocks at the bottom and has a certain amount of chips in hand, it will be easy to pull up the stock.

90% of the chips are highly concentrated at 5%-10%. At this time, if the stock price is at the bottom and has been trading sideways for some time, it can be understood that the retail investors have been washed out, and the stock has been highly controlled by the main force, and it is likely to start rising soon.

This is one of the most typical signals before all strong stocks take off.

Once the concentration of chips reaches the standard of strong stocks, everything is ready, only the east wind is missing.

Such stocks can be found on trading software. Investors only need to choose carefully and wait patiently for opportunities to appear.

Sometimes, not doing anything is not because you are at a loss, but because you are confident. 95% of the profits always come from 5% of the transactions. Waiting for the rabbit is a trading strategy.

We don't need to be smarter than the market. Once you have established a stable trading system, you should not move unless the market sends a signal. Once a signal appears, do not hesitate and draw your sword.

In November 2014 and July 11, Jiang Juan used the chip principle and patiently lurked, and finally selected two stocks, Weinan Health and International Medical, respectively. Every time there was a decline or a wash-out, she insisted on doing each wave according to the chip principle by calculating the main positions.

By predicting the stock's target through the support and pressure of the chip concentration peak, the ultimate profit was over 300%.

For example, in the 2016 Sichuan Shuangma stock market in 000935, the concentration of 90% of the chips at the bottom reached below 5%, and the concentration of 70% of the chips reached below 3%. When the chips are highly concentrated, it means that most of the chips are in the hands of the main force, and a rapid rise out of the cost area is just around the corner. It easily rose from the lowest 4.89 yuan to 41.83 yuan in one go, and the increase doubled 35 times in just 10 trading days. It can be seen that the concentration of chips is important for a bull stock.

Therefore, the stock market masters all regard chip concentration as a necessary tool for identifying monster stocks.

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

The above technical cases of strong and always strong stocks are suitable for investment operations at any time.

Grasping the rhythm and patience seem to be particularly important! When the market is bottoming out, only the medium- and long-term varieties with potential can be selected, which greatly creates opportunities for stable profits!

By using chip trading, you can gain insight into the main positions, capture the start of major market trends at any time, and open up profit margins for investors.

The most difficult thing about trading is not action, but inaction, the ability to keep an empty position, the ability to wait, and the ability to manage one's own emotions and desires.

There is nothing absolutely 100% certain in stock trading, just like with many stocks, the chips are constantly changing hands. As the cost rises, the chips increase and the stock price goes up, which shows that it is not just one main force operating. Everyone is optimistic, which is often called the market synergy.

Livermore said: The trend is your friend, only trade at key points. Choose the trade that is most likely to make money, hold on to the winning variety, and let it go until you have a clear reason to sell.

Sometimes, the frustrating market conditions not only reduce your market value, but also destroy your will psychologically!

If you can survive the bear market, you will definitely outperform the bull market. Keeping the right pace is a demonstration of your risk control capabilities.

There is no perfect stock, and there is no perfect trade. We are always learning to get closer to perfect trades, and we must admit our mistakes when we make them.

The difficult road is the inevitable path to growth. Just like a seedling must go through the baptism of wind and rain to thrive, people also need to hone themselves in difficulties and setbacks. Every difficulty is an opportunity for growth.

Studying does not necessarily lead to success, but not studying will definitely lead to failure! Some people are struggling with tuition fees, while others are already laughing at the rewards they have gained from studying!

All luck comes naturally after countless efforts. When the seeds break through the soil with difficulty and grow into green sprouts, you will know that no effort will be in vain. Hard work is the best reward you can give to the years.

Sun Tzu's Art of War has about 6000 words, and its essence is two words: one is calculation, and the other is change. When entering the stock market, you must learn to change and change with the changes in the market; learn to calculate and calculate the future space and trend.

A victorious soldier will fight again after a thousand victories, while a defeated soldier will fight again after a thousand battles. A person's true ignorance is not what you don't know, but what you think you know. You can only jump when you are standing, but you can only crawl when you are kneeling.

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