The legendary woman who was reborn from the ashes

There are two investors with very different personalities, Zhang San and Li Si. Li Si is a young investor full of enthusiasm and drive, always chasing the moment of large volume in the stock market, hoping to get rich overnight. Zhang San, an old stock investor with white hair, always steadily looks for opportunities in the shrinking volume. He knows that risks and opportunities coexist in the stock market.

One day, the two met in the noisy stock market trading hall. Li Si's eyes lit up, holding a hot stock in his hand, and said excitedly: "Lao Zhang, look at this stock, it has just risen in volume. Isn't this a sign of a bull market?"

Zhang San smiled and took Li Si's stock and examined it carefully. He said slowly: "The increase in volume is indeed a positive signal, but we cannot be blindly optimistic based on this alone. We must observe the position of the stock's increase in volume. The stock market is like a battlefield. We must observe it comprehensively, especially pay attention to the changes in trading volume and the fundamentals of this stock."

Li Si didn't care. He thought to himself: "Fundamentals? How can those boring data compare to the current increase?" He firmly believed in his intuition and decided to increase investment.

The market is always unpredictable. In the following days, although Li Si's stock did rise, the increase was far less than he expected. Zhang San remained calm, because he understood that success in the stock market requires long-term waiting and accumulation, rather than momentary impulse and passion.

As a result, the stock market ushered in a large-scale adjustment. Li Si's stocks instantly hit the limit down, and his wealth shrank significantly in a short period of time. Faced with the sudden blow, Li Si fell into panic and despair.

At this critical moment, Zhang San lent a helping hand. He did not blame Li Si for his impulsiveness, but patiently comforted him and shared his investment experience over the years.

He told Li Si: "The stock market is like life, with ups and downs. When the volume is shrinking, we must remain patient and learn to wait, rather than blindly pursue volume expansion. Only by learning from our mistakes can we move forward steadily in the long river of the stock market."

Li Si felt deeply regretful after hearing this, and he realized his previous blindness and impulsiveness. He decided to re-learn stock market knowledge, no longer just pursue immediate interests, but learn to find opportunities in shrinking volumes and face the ups and downs of the stock market with a more stable attitude.

From then on, Li Si and Zhang San became close stock friends, sharing their experiences in the stock market.

Their stories also remind every investor: while pursuing expansion, more attention should be paid to the value of reduction.

Li Si began to study the technology of shrinking transactions in depth, thinking about how to accurately capture opportunities when market fluctuations are small. Zhang San was not to be outdone, and tried to make bold moves at critical moments to show his unique investment vision.

Although their investment styles are very different, they all deeply understand one truth: in the stock market, volume expansion and volume contraction are like the two poles of yin and yang, and neither can be missing. Only by being flexible and adapting to the times can one be invincible in this turbulent battlefield.

What this story tells investors is that no matter whether the volume is increasing or decreasing, the key is to pay attention to when the stock market should increase or decrease in volume.

A trading philosopher said: Trading is like water. If you are high, I will retreat and never take over at a high position. If you are low, I will rush in and never miss an opportunity. If you move, I will follow and never go against the trend. If you are still, I will stay and never be indecisive. If you are hot, I will boil and never leave easily. If you are cold, I will solidify and never trade frequently.

When a stock accelerates its rise, 99% of the time it will have increased trading volume. The core of trading volume represents two points. The first is activity. When the trading volume increases, we say that activity increases. Increased activity is of course a good thing for the capital market. Activity means that trading sentiment is increasing.

Is a large volume increase good? It should be judged from the stock price position. When a stock reaches the daily limit, do you want it to have a large volume or a small volume? Of course, the smaller the daily limit volume, the better. Small volume means small divergence. Small volume is not because no one buys, but because no one sells.

For the same limit down, do you hope for a large volume or a small volume? Reverse thinking will tell you very clearly, because when the limit down occurs, a large volume represents a large disagreement, with many buyers and sellers. Therefore, from these two logics you know that the trading volume is in different positions, and the conclusions drawn in the end are completely different.

The trading volume is also ever-changing. When the trading volume is high, you should be careful. When the trading volume is low, you may need to pay attention.

We are in different positions, we can only say that trading volume represents different emotions and different logic, but the core is these two points, activity and divergence. It is active in different positions, and the higher the position and the more active it is, the more careful you have to be.

99% of the time a stock will have increased trading volume when it is accelerating its rise. Why does accelerated rise mean that the price has become higher? There will always be differences. When the stock rises to a point where differences appear, you have to start to be cautious.

Trading volume, this simple yet profound concept, is like the pulse of the stock market. Every beat contains the market's sentiment, expectations and strength.

To deeply understand the mystery of trading volume, we must first understand the logic behind it.

In the stock market, trading volume represents the number of transactions between buyers and sellers within a certain period of time. These transactions are not just simple numbers, they reflect investors' recognition of stock prices and the level of trading activity.

The change in trading volume is closely related to the fluctuation of stock prices. In the process of rising stock prices, the increase in trading volume is usually regarded as a confirmation signal of the upward trend, which means that more investors are participating in the trading of this stock. This is because as the stock price rises, more and more investors begin to pay attention to and participate in the trading of this stock, pushing the stock price to continue to rise.

On the contrary, if trading volume shrinks during a stock price decline, it may mean that the market's pessimism about the stock is weakening and the stock price may stabilize and rebound.

Changes in trading volume do not always keep pace with stock price fluctuations. Sometimes, during a stock price rise, trading volume may show a trend of shrinking. This may mean that the market has different views on the stock's upward trend, and some investors begin to choose to sell, resulting in a relatively smaller trading volume.

The second thing that trading volume brings is that trading volume is formed by buyers and sellers, so it represents differences.

Likewise, trading volume may also increase during a decline in stock prices, perhaps because some investors choose to sell in a panic, leading to an increase in trading volume.

In actual operations, investors can guide their investment decisions by studying the changing patterns of trading volume.

During an upward trend in stock prices, if trading volume continues to increase, investors can choose to continue holding or make additional investments; during a downward trend in stock prices, if trading volume continues to decrease, investors can choose to buy on dips or hold for further increases.

Of course, these decisions need to be analyzed comprehensively in combination with other indicators and market information to reduce investment risks.

In short, as an indispensable factor in the stock market, trading volume is of great significance to investors. By deeply studying the changing rules and logic behind trading volume, investors can better grasp the context and trends of the market and formulate more reasonable and effective investment strategies.

At the same time, investors also need to pay attention to maintaining a calm and rational mindset to deal with market fluctuations and risks in order to obtain long-term stable returns.

To truly understand the secrets of trading volume is not just a superficial observation and analysis. Investors also need to have in-depth market insight and rich investment experience to accurately capture the opportunities and risks brought about by changes in trading volume in a complex stock market environment.

In actual operations, investors also need to avoid some common misunderstandings. Paying too much attention to trading volume and ignoring other important indicators and market information, or making investment decisions based solely on changes in trading volume and ignoring the company's fundamentals. These misunderstandings may cause investors to miss opportunities or suffer losses.

Investors also need to maintain a calm and rational mindset to deal with market fluctuations and risks in order to obtain long-term stable returns. In the future investment path, I hope that every investor can achieve their wealth appreciation goals by mastering the secrets of trading volume.