At the beginning of the month, I talked about the AI sector first, and then the game sector. The AI sector took off first. Last night I said that the game sector’s increase was not enough, so I bought it. Today the game sector started to rise.
Let's talk about the idea. Why can we grasp it accurately?
1. First of all, we should look at the news and the market. If the news is favorable, then we must pay attention to it. We should also pay attention to the relatively strong market. Many people have a wrong idea that they will rise more after falling, but in fact it is not. The strong are often stronger and the weak are weaker. Especially in the case of limited funds in a bear market, when there are hot spots, funds will flow to the hot spots, and prices will continue to be pulled up. There is no sector that has no attention at all, and there is no funds, so how can the market be pulled up? At the beginning of the month, I mainly saw that the AI and game sectors were doing well, so I paid more attention to them.
2. When you are following a sector and the market is relatively strong, continue to observe the trend. If you feel the entry point, then you can enter the market with confidence. Of course, this requires technical interpretation and a good stop loss. I have said many times that trading is a probability game. No matter how good a trader is, the success rate of each transaction is only about 50%. It is not terrible to be wrong. What is terrible is not to realize that you are wrong or not want to face it. On the technical level, it is nothing more than those trends, support, and patterns. Just use them as you feel comfortable.
3. When the purchased stocks have risen in price and it is in line with your expectations, you can take appropriate or full profits and manage your positions well.
4. Adjust your mindset. Make sure you are rational every time you place an order, rather than trading emotionally. The more emotional you are, the more you lose.