The legendary woman who was reborn from the ashes

Chapter 4: Dark Horse Found from the Death Cross of Indicators

To be enlightened in this market, you must have experienced pain, pain to the point where there is no way out, pain to the point where you can’t see any hope at all; if you are not enlightened, it means you have not been in pain to the point where it hurts your heart, and when you still have a glimmer of room to maneuver, you will be tempted to hope for luck; only after experiencing pain can you be truly enlightened, and can you feel it from the bottom of your heart.

Investing in stocks requires technology. Without good investment concepts and techniques, and without solid basic skills, you will never achieve great success.

The second is discipline. Every industry in the world has its own rules, and the rules in the stock market are more numerous and more difficult to master, such as stop loss, buying and selling principles, stock selection discipline, bottom and top operation principles, etc. Many people understand them, but it is difficult to implement them.

Success is mostly attributed to one's own iron discipline, and then there is the mentality, which is also an important condition for whether an investor can succeed. Of course, this requires tempering and improving one's overall quality.

When the stock market is at a high point, you will worry about the risks; when the stock market is at a historical low, you will think about the opportunities. Once you are in the stock market, you can enjoy the happiness brought by investment.

There was a period of time when the market was not bad, but Jiang Juan's funds did not achieve the expected profit. It was her overconfidence that led to her mistakes.

Her meticulous and persistent character meant that she had to review and formulate the trading system again.

A mature trader should be aware that all trading strategies cannot be perfect or have unique secrets. Even the most profitable trading strategies have flaws.

Similarly, all technical indicators cannot be omnipotent.

For example, the KDJ indicator that Jiang Juan often uses when trading and is very familiar with can also deviate unconsciously and cause cognitive errors. This is because many details of the indicator have not yet been explored.

Although the KDJ indicator is sensitive, it also has its shortcomings. The signal of the golden cross often causes investors to buy too early and get stuck, and the signal of the death cross causes investors to sell too early and get shorted.

The failure of the KDJ indicator occurs especially in extremely strong or weak markets, in unilateral rising or falling markets.

KDJ itself is a relatively sensitive indicator, and in the KDJ indicator, the J value will react immediately to sudden changes in stock prices. It is also the most effective for investors to monitor sudden rises or falls in stock prices.

When Jiang Juan was looking for the reasons for failed transactions and reviewing the market, she found that when the J value in KDJ is in a strong zone, it plays an important role in the emergence of future dark horse stocks.

When the J value is greater than 100, it is often a sign of overheated market, and the stock price will generally form a short-term head.

When the KDJ indicates a pullback from overbought to dead cross, with the K-line low point corresponding to the highest J value as the boundary, as long as the stock price does not fall below the K-line low point corresponding to the highest J value, it will digest the indicator's retracement in a sideways form. This is also a divergence phenomenon. At this time, investors should pay special attention to the signal given to us by the indicator---a dark horse is about to emerge.

Once the indicator stabilizes and rises after adjustment, there will be a wave of upswings, which fully demonstrates the sensitivity of the J value. This is the dark horse hidden in the dead cross of the indicator.

This important discovery in the use of KDJ indicator has greatly helped Jiang Juan to further optimize her trading strategy. It turns out that the indicator can also hide bull stock genes in the dead cross.

After understanding and mastering this trading technique, you can capture big black stocks in time during the indicator death cross.

The reason was finally found! When the indicator showed a death cross signal, I did not find the bull stock gene hidden in the indicator in time, so I sold out too early and was squeezed out. I hastily stopped profit before the bull stock started, and lost a lot of profits.

There is nothing to be afraid of when making mistakes in actual operations. What is fearful is avoiding mistakes and not daring to face and correct them. Only by constantly correcting mistakes can you improve and perfect your trading level.

Jiang Juan integrated many technical points, reviewed them repeatedly, and made rapid progress, which enabled her to achieve annual returns that exceeded expectations in subsequent transactions.

People who lived in that era missed a lot of opportunities. After embarking on the road of investment, they realized the truth with difficulty and finally showed their edge, became a big boss and won the market.

Insist on reviewing the market every day, day after day for many years, looking back on the market, summarizing gains and losses, and predicting the future during the review.

Daily operations and review are essential tasks for Jiang Juan after she became a professional stock trader. In the few years since she entered the stock market, she has only rewarded herself with a few days off.

Those who accomplished great things in ancient times not only had extraordinary talents, but also had unyielding determination.

Jiang Juan is an investor with great perseverance. After all, it is very hard to stick to one thing for a long time, and the stock market is so unfathomable that most people have a mentality of fishing for three days and drying the net for two days.

The essence of Jiang Juan’s review:

After the market closes, get rid of distractions, calm down and review the day's transactions. Which are the opportunities within your own model, did you seize them, why didn't you seize them, what did you not do well, and how to deal with such a situation next time.

Reviewing is your own actual operation. If operating within the model is ideal, then your own operation is reality. Which stocks were bought, at what position were they bought, which stocks were sold, at what position were they sold, and what problems occurred during the buying and selling.

Through day-to-day rehearsal, review and soul-searching, we strive for excellence, perfect our own model, and form our own near-perfect system.

I still remember the words of the oil seller: There is no other reason, just practice makes perfect. Through such review and summary, comparing ideal with reality, my own weaknesses are getting fewer and fewer, and the operation of the model is becoming more and more systematic.

Tomorrow's prediction review:

The Book of Rites: Doctrine of the Mean says: "Everything is established if it is prepared; without it, it will fail." Jiang Juan's review well reflects this saying.

In the early days, Jiang Juan's predictions for the next day were often biased, but as time went on, the bias became less and less, and she often foresaw the risk points or opportunities in the market in a forward-looking manner.

Data overview, model operation, actual operation, and tomorrow's prediction, these four parts together constitute the core of Jiang Juan's day-to-day review, and also made her jump from an ordinary laid-off woman to the first place in the stock market competition.

Many people are curious about the secret of going from an ordinary retail investor to the first place in the stock market competition. To be honest, there is a secret. The so-called secret is to do a good job of daily review down to earth, which is the biggest shortcut.

Jiang Juan believes that the biggest difference between people is not IQ, but thinking mode. Talking about stocks is actually about finding patterns.

The market is always right, and stock prices, like water, always flow in the direction of least resistance.

You must build your own system. Review your previous operations carefully, integrate similar ideas, and find out where the contradictions are. Build your own thinking mode. When operating during the trading session, what points are the most important and what you should think of first. Then continue to put them into actual combat to find problems, solve problems, and form muscle memory.

Improve trading accuracy: Focus on intraday and recent review, explore the success and failure of each transaction, form new knowledge points, and continuously upgrade your system.

You can't work in isolation, seek advice from experts as much as possible. The collision of different ideas often brings surprises, but the most important thing is to integrate it into your own system and discard what you can't.

In general, you should pay attention to and work hard on any areas where you can improve yourself, including your own thinking patterns, etc. Details determine success or failure.

So far, Jiang Juan has recorded hundreds of thousands of words of trading experience. She often opens it to review, which gives her a sense of learning new things from the past. Every time she reviews, she has new insights and new improvements.

Standing on the shoulders of the giants of the past, recording our own growth, is also a way to express gratitude and pay tribute to our predecessors, so that the spirit of hard work and learning can be passed on from generation to generation;

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