There is a saying that opportunities are always reserved for those who are always ready. In the stock market, I realized that I could not make money. Even if I made a fortune by luck, I would probably lose money in the end. Therefore, to struggle in the stock market, you must make good expectations and formulate trading plans.
For the index, two expectations must be made at present. One is a secondary bottoming, and the other is a direct start. If it is a secondary bottom, the bottom will most likely be higher than the previous bottom 3732. If it is started directly, it must break through the neckline pressure near 3840. It's like a battle, you have to reconnaissance the terrain in advance and know which direction the enemy may attack.
If you are short now, can you set a bottom position in advance? Once the market starts directly, some sectors will definitely take the lead.
Conversely, if the market adjusts and the index bottoms out for the second time, don't panic. At this time, you can replenish your positions at the key support level. It’s like when the enemy attacks, first retreats to the solid fortress, and then attacks when the enemy is tired. Replenishing positions at key support levels means increasing your bargaining chips when the market falls to a safe area, and waiting for the market to rebound to gain more profits.
Trading is never a simple question of whether to sell or buy. It's like a complicated chess game, every step requires careful consideration. We must make expectations in advance and formulate response plans. For example, what should I do if the market falls sharply? Should I stop loss and leave the market, or should I stick to my position and wait for a rebound? What should I do if the market rises sharply? Should I put my pockets in peace, or should I continue to hold on to wait for higher returns?
In short, if you want to survive in the stock market for a long time, you must always be vigilant, make good expectations, formulate trading plans, and manage positions reasonably. In this way, you can respond calmly when facing fluctuations.
