Rebirth of the Capital Legend

"Limited by the volume, it's still hard to get out!" Noting that on the market, a number of popular stocks rose sharply at the opening, and then quickly fell back to the opening position. At the same time, the selling pressure on many stocks became heavier after the trend of a number of popular stocks fell. At this moment, Xu Qiao, one of the main speculators of the 'Magic City Super Short Gang', sighed and said, "It feels like the market's upward breakthrough trend is always a breath away, and it has been inconsistent. I'm worried that if this volume continues... the market's major indexes will most likely fall back and adjust!"

"Today's market volume has shrunk, which is indeed a bit serious." Lao Zhang took over and said, "At this point in time, the volume has shrunk by about 200 billion compared to yesterday. I originally thought that today's market would most likely form a consistent shrinking volume and accelerate breakthrough, but I didn't expect it to be a shrinking and narrow range of fluctuations."

"I think today's market performance is still within a reasonable range." Old Wu laughed and said, "Originally, when the market fluctuates in a narrow range and the long and short positions are unclear, the wait-and-see sentiment will increase. As the wait-and-see sentiment increases, the funds for long and short positions will naturally not be active, and the volume will naturally decrease, right? Moreover, although the market is limited by the volume and the trend is not smooth, when it adjusts downward, it can be clearly seen that many hot stocks in the core main lines have strong active buying.

I think that since the directional choice was made yesterday, the huge divergence during the trading session has turned into a consensus.

Today's trend is narrow range and shrinking volume.

It can be regarded as the process of clearing floating chips after direction selection.

Today's narrow range of fluctuations with reduced volume makes it impossible to tell the strength of the market. If we really want to judge the strength, we need to rely on tomorrow's market trends to support it.

Moreover, looking at the K-line trend patterns of major core-related industry sectors and a number of popular stocks.

I think the major main lines are still in an upward trend, or are developing an upward breakthrough trend, and have not deviated from the upward trend.

Since the trend is still there, we should rely on the inertial force of the trend.

In the short term, there is no major negative impact on the market, and the external market trend is relatively stable.

There is no reason to adjust downwards again, so that investors who lost a lot of chips at the previous lows can continue to pick up chips at low levels safely. "

"Old Wu is right." Brother Chen responded after hearing what Old Wu said, "I also think that today's market's narrow range of fluctuations with shrinking volume is a relatively benign adjustment trend. At least for now, there is no obvious sign of loosening of chips in the popular stocks of the core hot main lines of the market.

Look at stocks like 'Oriental Yuhong', 'Huawen Online', 'Huaxin Building Materials'...

Although there are large fluctuations on the market, the support is also very strong.

Generally speaking, if the market trend tends to be weak, the core leading stocks with the best market liquidity will be the first to react.

Today, these core popular leading stocks are still developing in a positive direction.

That means there is no need to worry too much about the temporary market trend.

Of course, at this position, there is not much need to continue chasing and buying high shares. No matter whether the index adjusts slightly or continues to turn upward, in general... the probability of falling back to this position is much smaller than the probability of continuing to rise.

When we trade, the essence is to make directional choices with a higher probability.

Since under the current market factors, the probability of the market continuing to rise is much greater than the probability of adjusting downward, there is nothing to be afraid of and there is no need to worry too much.

It doesn’t make sense that we can’t hold on to our chips with this little volatility after having survived all the previous adjustments.

My opinion... remains the same as before.

As long as the core leader of this round of market rebound cycle, 'Oriental Yuhong', does not fall below the key trend support position of this round of sustained rise, and its overall upward trend is not reversed, we can be actively bullish, maintain a relatively aggressive position, and continue to be optimistic about the development of the core theme of 'big infrastructure'.

You must know that in the market, any main market trend cannot be achieved overnight.

There can’t be no twists and turns.

Although the current position is not certain enough, it is much better than the previous market trend where the index fluctuated below 3000 points. "

"I don't think the market is going to adjust," Xu Qiao said. "I'm just worried that the profits from the stocks I hold will be drastically reduced. Sigh... I can hold on to my stocks when I'm losing money, but I'm a little hesitant when I'm making a profit. I can't really hold on to my stocks when the market is adjusting."

"That's how retail investors think." Old Wu smiled and asked, "Xiao Xu, your position is too heavy, isn't it?"

Xu Qiao responded: "Not bad, 3% of the position, bought million."

"Fuck, 80% of your position, you are heavily invested." Lao Zhang exclaimed, and then said, "Xiao Xu, you can't have bought all the popular leading stocks in the main line of 'big infrastructure' with 80% of your position, right?"

"That's impossible." Xu Qiao smiled and said, "The check for 'Oriental Yuhong' only has 8000 million chips. The check for 'Huawen Online' was bought with fast hands in the morning, and 2000 million chips were bought on the daily limit. The rest of the chips were gathered in several industry heavyweight leading stocks such as Conch Cement, Poly Real Estate, and Huaxin Building Materials."

"That's not bad." Old Wu said, "Although your overall position is heavy, the risk is not great. The 'Oriental Yuhong' check has the support of Brother Su's 'Fuxing Road'. As long as Brother Su does not rashly and publicly reduce his position on a large scale, this check will not fall much in a short period of time, supported by extremely strong market attention and takeover orders, as well as strong expectations of future performance explosions. Moreover, this check has continued to rise to the present. I feel that even if it peaks in the future, it will not be a sharp peak. Therefore, even if this check fails to react in time, it should give sufficient opportunities to reduce positions and stop profits.

The other stocks...

Your position in the check of 'Huawen Online' is not heavy, even less than one tenth of the overall position. Even if the check falls to the limit tomorrow, it will not have much impact on the profit and loss of the overall position.

As for Anhui Conch Cement, Poly Real Estate, Huaxin Building Materials...these are the industry's leading stocks.

I think the trend of these stocks is the most stable since the outbreak of this round of "big infrastructure" main line market. Basically, they are small negative and small positive continuous fluctuations upward, the chip structure is extremely stable, and there is no sign of any large funds reducing their positions and withdrawing from these stocks at present. "

"Xiao Xu, your holdings... when did you change your style?" Old Zhang was obviously surprised when he heard about Xu Qiao's specific holdings. "This is obviously different from your previous trading strategy and operating style. According to your previous trading style, you would never touch Conch Cement, Poly Real Estate, Huaxin Building Materials... these industry leaders. When did you change?" Xu Qiao coughed lightly and responded, "I learned it from Brother Su. I think that although the short-term sentiment in the market is continuing to heat up, and a number of active capital groups in the market have continued to converge on small and medium-sized stocks and micro-cap stocks in recent days, the overall market trend and the overall investment preference of large funds are still focused on the core leading stocks in the industry and a number of leading stocks with better liquidity.

As long as the overall market trend has not yet escaped the bear market pattern.

Therefore, the large capital groups in the market will definitely give priority to liquidity and stability in their investment preferences, and only then consider the issue of flexibility.

The trend in recent days...

It also shows that the small, medium and micro-cap sectors have rebounded strongly.

However, there are not many large capital groups that actually get involved. Basically, everyone gets involved in these stocks for short-term speculation and speculation.

However, short-term speculation and short-term gambling will make it difficult to stabilize the internal chip structure of these stocks.

And form a continuous upward trend.

At the same time, there are many similar concept stocks in the field of small, medium and micro-cap stocks.

Various speculative capital groups are also very random in choosing leading stocks, just like the two stocks of "Quantong Education" and "Huawen Online" in recent days.

Once 'Quantong Education' is successfully occupied by 'Huawen Online'.

The trend of the check of "Quantong Education", its market liquidity, and the ability to take over buying funds will all drop sharply, and the stock price trend will also form a continuous volatile downward trend, returning to where it came from.

This means that recent short-term trading must be carried out with rapid rotation and switching on the core main line.

However, the more transactions you make, the greater the uncertainty of the transactions will be, and it will be more difficult to earn excess market profits.

Instead of this...

It would be better to choose to invest more in stocks that have higher certainty, more stable trends, and are in line with the core themes and logic of the market. "

"Indeed, the more times you trade, the greater the uncertainty of trading will be." Brother Chen nodded and responded, "Xiao Xu's trading model feels more mature than before. The overall investment trend of the market now... Although today's active funds are indeed converging towards small and medium-sized stocks, small and micro-cap stocks, I also feel that the core force and core focus of the market development have still gone out of the trend and formed an effective breakthrough, and reversed the previous downward trend of the 'big infrastructure' main line, as well as the liquor, white appliances, medicine, consumption, electricity, petrochemicals, finance and other sectors associated with the A50 line.

Many people look down on these weighted main sectors and these weighted stocks.

I feel that the elasticity is low, the fluctuation is small, and the space is very limited.

But if we extend the K-line cycle and look at it, it is precisely these weighted stocks, as well as blue-chip stocks with strong support from future expectations, that have outperformed the broader market index and more than 90% of individual stocks in the market this year.

Take 'Anhui Conch Cement' and 'Poly Real Estate', the two core industry leading stocks of the 'big infrastructure' main line, and compare them with 'Beijiang Communications Construction', 'Capital Group', 'Huaxin Cement' and other popular concept leading stocks. We can clearly see that since the entire 'big infrastructure' main line market began to explode last month.

Judging from the overall increase in the past month, the stocks such as 'Beijiang Communications Construction', 'Capital Group', 'Huaxin Cement', etc. are also lower than those of the industry leading big stocks such as 'Anhui Conch Cement', 'Poly Real Estate', 'Huaxin Building Materials', etc.

Although these stocks rise slowly, they fall less during adjustments.

Therefore, I think that when the main market trend is determined, buying leading stocks in core industries and buying small and medium-sized stocks with higher elasticity are not contradictory, and they will not make less money. "

"Well, that being said..." Old Wu said, "but the most important condition is that it must be in line with one's own trading style and trading logic."

Lao Zhang responded, "I think so too. Although it is highly likely that the trend of the core leading stocks in the current market trend is more stable and seems to be stronger overall, I still think that choosing concept leading stocks with higher elasticity and stronger short-term explosive power for gambling and operation is more in line with my trading system. For big stocks like 'Poly Real Estate', 'Conch Cement', 'China Construction', etc., no matter how well they rise, I will not buy them."

"It is definitely most important to follow your own trading model and find stocks that fit your trading model to trade." Brother Chen nodded slightly and said, "As long as we trade in the financial market, we can only make money within our cognition, and everyone's cognition is always different.

In my opinion, anyone who can find a trading model that suits his or her personality in a volatile market is considered a master.

People who can adapt to various style changes in the market, can skillfully use various trading models and styles, can follow market trend changes, and adjust trading models in a timely manner, like Brother Su... they are already the top masters in the market. Others can't learn from them, and shouldn't learn from them.

As the saying goes, one trick can be eaten all over the world.

Mastering a trading model and making money within the model is enough to survive in the financial market if you do it seriously. "

"That's right." Old Wu nodded and said with a smile, "If everyone can do what Brother Su does, switching trading styles and trading modes at will, and can also hit the market's style changes, then the money in this market will not be as easy to make as it is now. In general... the trading mode that suits your personality and yourself is the best."

As several people in the group discussed market trends and trading models.

The market's trading hours continue to move forward.

As the market trading hours continued, the corresponding core lines and a number of popular stocks in the two markets fluctuated less and less, and the volume was declining more and more. It seemed that after the pulse fluctuations in the early afternoon trading, the various funds in the market, whether they were holding positions and wanted to sell or holding coins and wanted to buy, were increasingly waiting and watching. (End of this chapter)