The legendary woman who was reborn from the ashes

Chapter 7: Dark Horse Stock Selection Ideas - Moving Average Bonding

The Chinese stock market has created countless wealth legends, and such wealth stories are still being played out and replicated today.

It is no wonder that so many people are rushing to the stock market, hoping to find their own role in this legendary story, and among them are naturally many new investors who have just come into contact with stocks.

Stock investment is a time-consuming, labor-intensive and worry-free task. You cannot be impatient for success, nor can you dream of good luck falling from the sky with a lucky chance mentality. Instead, you must make solid preparations in advance and dare to act when opportunities arise.

Only in this way can you find your own role in the legendary story of wealth in the stock market.

Jiang Juan is an ordinary woman with neither age nor academic advantages. Through her own efforts, she stepped onto the investment education platform, became a respected gold medal lecturer, and won the proud first place in the stock market competition.

During her training career, she has cultivated many outstanding traders who are working hard in the futures and stock markets. While changing others, she has also achieved her own life trajectory and realized financial freedom.

After many years, she can now fly from one end of the earth to the other as if it were a daily routine, but when she recalls the first time she took a train to Yiwu Small Commodities Market to purchase goods, she is still very excited and cannot forget it for a long time.

From starting out as a street vendor with just a few thousand yuan to becoming a well-known fund manager today, and becoming the "big sister" of the financial market, the ups and downs of the market economy have played out many wonderful stories in Jiang Juan's life.

How did Jiang Juan become enlightened and grow? What suddenly opened up her Ren and Du meridians? In fact, the beginning of enlightenment is the process of changing thinking.

During the time that Jiang Juan was trading, she suffered many losses and encountered many confusions. No one could give her a direct answer, and she didn't know where to look for the answer. Fortunately, she met many enthusiastic people, had many experiences, read many books, and encountered some opportunities, which allowed Jiang Juan to break through her original cognition, resolve her doubts, and find a clear direction.

The fastest way to make money is to copy, not just learn. People who don’t understand spend all day studying what to learn, while people who really understand only study how to copy. Copy those who have achieved results. If others have made millions, you can also make tens of thousands after copying.

This was the sudden realization that gave Jiang Juan an epiphany.

Learning technology is relatively simple, as long as you are willing to work hard, you can learn a little bit, but it is difficult to change your mindset, because many people will fall into their own inherent thinking and find it difficult to extricate themselves.

When she first entered the stock market, Jiang Juan suffered huge losses, even continuous losses. For a period of time, she was unable to get out of the losses and suffered for several years. Finally, she gradually changed through learning, copying, and optimization and integration.

Many years ago, Jiang Juan attended a business lecture held by a brokerage firm. During the training course, the organizer invited well-known domestic trading teachers to share their trading experiences and trading logic. Many students became impatient while listening and began to lose confidence in attending the class.

After all, technology is rather boring, so some students asked questions directly, saying, "Teacher, you have explained so much but I cannot learn it all at once. Why don’t you just tell me how the market will go next week, and I will just follow the direction you give and make money." At that time, this kind of reaction at the training site was very intense.

The teacher's answer in class made Jiang Juan suddenly realize. The teacher said that I cannot predict how the market will go tomorrow, but based on my trading system, I know what to do tomorrow.

Then he randomly selected a market trend and demonstrated how he traded in that market trend. He made a few random transactions and his account became profitable.

The teacher's logic is clear and orderly in his operations. Anyone who understands can tell at a glance that the teacher has a complete trading system and the operation just now was performed by the teacher's trading system.

After attending this lecture, Jiang Juan realized that every trader must have his own trading system. Trading is not based on prediction, but on optimizing probability.

You only need to capture the standards of your trading system in the market. It is impossible to expect to capture all the market conditions.

From then on, Jiang Juan began to try to build her own trading system. With more in-depth research, she reviewed many technical combinations and looked back at past historical market conditions, making her trading system more and more complete and mature.

Jiang Juan's trading system is roughly as follows:

Step 1: Determine the direction of the trend and choose a trading cycle that suits you.

Step 2: Determine the entry signal and then wait for the signal to appear.

Step 3: Manage positions in a planned manner and set stop loss and take profit in advance.

Step 4: Enter and exit the market rationally. Don’t be greedy when making a profit, and don’t be afraid when making a loss.

The trading system should be adjusted accordingly as the market changes. The market is made up of people, and the constant changes of market participants determine that the market will also change. Therefore, there is no fixed method or unchanging trading system in this market.

Any trading system must be constantly optimized and verified by yourself. There is no best one, only the one that suits you best.

Whether you learned your trading system from someone else or created it yourself, you must constantly optimize it.

There are many trading systems. Find a system that you can master and implement it strictly, and stable profits will be just around the corner.

According to the system prompts, which trading method should be used under which trend.

Jiang Juan's trading system always adheres to the "Trading Concept of the Strong Gets Stronger". In addition to the content explained in the first chapter, one of the ideas for selecting dark horse stocks, moving average adhesion is also a very important strong form.

Moving average adhesion refers to a pattern in which several moving averages with different long and short periods run horizontally at the same position and are close to overlapping with each other.

The reason for the adhesion of moving averages is that after a long period of stock price consolidation, the holding costs of investors with different styles are close to the same, causing the moving averages to run close to parallel.

Judging from the K-line pattern, the stock price should be in a box-shaped consolidation at this time.

The appearance of moving average convergence indicates that the market is about to have a major turning point. Once the moving average diverges, the turning point will also begin. The specific turning direction can generally be judged based on the market trend before the appearance of moving average convergence.

Among all indicators, the moving average is undoubtedly one of the simplest, most intuitive and most practical indicators.

In stock software, most of the indicators are moving average indicators. They are all derived from different price algorithms. The application methods of moving average indicators are similar. Once you have learned the application method of the moving average indicator, other moving average indicators will be very easy to use.

If the market has experienced a sharp rise before the moving averages converge, the market may be about to turn downward; if the market has experienced a wave of declines before the moving averages converge, and has bottomed out and consolidated sideways for a period of time, it may usher in a new opportunity for a rise.

Jiang Juan continued to test her own trading strategies in actual combat, and adjusted the trading system based on statistical profit and loss data. Finally, in future actual combat, as long as such technical patterns appeared, she would make huge profits by strictly following this trading strategy.

Transaction specific conditions:

1. The moving average must diverge upward to form a big positive line or jump up and open higher the next day.

2. The upward diverging large positive line must be accompanied by an increase in trading volume.

3. All moving averages must be arranged in a bullish pattern.

4. The moving average was sideways in the early stage, and the longer the adjustment time, the better.

5. When bonding, the moving average must have a certain upward slope; a horizontal one is unreliable.

The easiest way to find such stocks is to look for them in the daily daily limit. As long as you find stocks that meet the above conditions, analyze and buy them in a timely manner.

Case 2023: Kaihua Materials closed with a daily limit with large volume on November 11, 17. The moving average diverged from adhesion to upward, and it rose by more than 11% in 400 trading days.

案例二:新昌盛,2023年3月22日,13个交易日走出了一波123%多的涨幅。

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

Every time the market hits bottom, there will be many such stocks, thus providing investors with many profit opportunities.

When the market was bottoming out, Jiang Juan used this trading system, and was able to capture the dark horses and make quick profits every time.

Investing is a process of continuous learning and practice. We need to constantly learn new knowledge and skills to improve our investment level. At the same time, we also need to constantly practice our investment strategies and principles, constantly summarize experiences and lessons, and constantly improve our investment methods.

The stock market has risks and fluctuations, but as long as we master the correct investment methods and techniques, we can get stable returns. We need to enjoy the investment process and enjoy the joy and sense of accomplishment of success through our own efforts and wisdom.

All technologies are the crystallization of human wisdom. When reviewing the history of 100 stocks and observing the formation of the bottom, you will find that the market is always so amazingly similar, but not simply repeated. When others are fearful, you are a little greedy, and the market is created in despair!

There is a road that cannot be chosen - that is the road of giving up; there is a road that cannot be refused - that is the road of growth.

You don’t have to win in life, but never lose to the mistakes and stupidity of the past!

Tap the screen to use advanced tools Tip: You can use left and right keyboard keys to browse between chapters.

You'll Also Like