"Chenjiang-The wisdom of stocks" reading notes

Here's the book.

2. No matter what the stock, before buying shares, first look at the 250-day average, only buy 250 moving averages above the stock, preferably in the stock price from under the 250 ema across to the 250 ema when buying
4. A stop loss for a 5%~8% after entering the stock
6. Just wait for the stock price above the 250-day EMA! Sometimes the stock price will not be under the 250 EMA for years. Once the stock price hits a 250-day moving average, sell it!
8. Do not exceed 10% of the principal amount per hand
10. The central idea is to catch the middle in a bull market. The bear market is avoided. You never know how much your share price will fall, or how high your share price will rise. Make money slowly, don't hurry!
12. No matter what industry you want to succeed in, you need to have the desire to succeed, the knowledge to realize this desire, and the perseverance to apply this knowledge.
14. It's only after you become an expert that you're likely to keep making money from the stock market.
16. Do not be afraid, also do not regret, play the game before, understand the rules of the game, in the face of the bet to manipulate, must find out the other side of the psychology; finally remind you that the thief's ability is not stealing, but in the crisis how to escape
18. The real earner is money.
20. Good greedy petty, eat not small loss of mentality so that the general shareholders almost inevitably become the loser
22. The stock market is where experienced people get a lot of money and people with money get a lot of experience
24. The process of learning shares is to customer service "greed" and other innate human nature, to develop "not greedy" and other acquired experience of the process
26. Don't be too opinionated, do not have too much confidence in your analysis. Careful observation of the stock market, wrong when the mistake. Otherwise, your chances of surviving in this line are not big.
28. When stocks fall, there are often reasons for it to fall, and often falling stocks fall lower. If you get stuck in this way, you'll get bogged down and know what you can't afford.
30. Basic analysis mainly analyzes the company's small environment.
32. Fundamental analysts believe that in the long term, the price of a stock depends on the company's fixed assets and its profitability.
34. A healthy, fast-growing company is sure to grow in profitability. The faster it grows, the better it gets.
36. The premise of profit growth is the growth of sales revenue. If a company's sales revenue does not grow, profit growth is usually the result of playing the accounting game
38. Also pay attention to the relationship between the growth rate of sales revenue and the rate of profitability
40. If the company redeems its stock, that's good news.
42. Technical analysis discusses the relationship between stock price, volume and time, thus determining the possible direction of the next movement of stock. The purpose of technical analysis is to determine the trend of stock and the change of its trend. They buy and sell to earn the difference based on the signals provided by the technical analysis.
44. In the uptrend chart, notice the change in the volume. In the ascent phase, the volume increases, the downward stage, and the volume decreases. The highest point of each fluctuation is higher than the previous fluctuation, and the lowest points are higher than the last lowest.
46. In the downtrend, the volume is not special, but each wave crest of the wave is lower than the previous crest, and the trough is lower than the previous trough.
48. When the stock fluctuates in a certain interval, the highest point is connected to a resistance line, and the bottom is connected to a support line.
50. The average line is mainly used to determine the trend of stocks.
52. Stock trend and trend line: In the normal uptrend, the highest point of each wave should be higher than the highest point of the previous wave, and the lowest points should be higher than the last lowest. The entire stock price movement should be above the trend line. In the normal downtrend, the wave should be one wave low, the highest point is lower than the previous peak, the lowest point is lower than the last lowest
54. Support line and Resistance line: Once the resistance line is breached, the stock should continue to rise, although there may be sung, but sung should not fall below the resistance line, otherwise it is abnormal movement. Similarly, once the support line is breached, the stock should go down, otherwise it will be abnormal movement. If a stock falls below the support line and bounces back to the support line, it may be a good time to buy stocks.
56. Average line: Take the 200-day average as an example, a normal uptrend, the stock price should be above the 200-day average; a downtrend in the policy, the stock price should fluctuate below the average line. Otherwise, it can be considered an abnormal movement.
58. In any period, the volatility of the stock is wavy, and each big fluctuation contains a lot of small fluctuations in the opposite direction. The average line will neutralize these small fluctuations and indicate megatrends. It must be stressed that stock market manipulation may change daily or short-term fluctuations, but it is unlikely to change the trend.
60. The trick is to invest in the bull market and sell all your stocks at the end of the bull market or near the end.
62. To determine the direction of the big city, the most important thing is to track stock index movements every day. Study the stock index chart, think of it as a stock, to see the stock is in what stage of movement, it movement normal?
64. Pay attention to the total number of transactions per day. If the stock market is large, but the index does not rise, or the opening is higher and the closing is low, this gives you a dangerous signal. Pay attention to what's going on around you. The transformation of the big city usually has a process, which is slower than the individual stock steering. A big city shift can take days, or weeks, and it's important to feel at risk when you have to take action.
66. Stock is the probability of the game, reverse the big trend, your winning probability is greatly discounted
68. Don't buy any stock when the big city is bad
70. Judging the big city should also pay attention to the following points: 1. What is the change in the big political and economic environment? 2. What is the economic trend in the country? What about the inflation situation? Is there any possibility of exchange rate change? Will the central bank adjust the interest rate? 3. What is the performance of the so-called stock market leader? Before the stock market is up to the top, you will send a letter to the stock market's leading shares for a period of time before the big city to the top. 4. What is the performance of the junk stock? In the first few days of the stock market, some small stocks that no one ever asked for are starting to become active and rising. The price of the leading stock has been expensive to buy not to hit the point, social hot money began to pour into three or four lines of stock. 5. How many liters of stock and how many stocks fall in the closing day?
72. The aim is to make money from the stock market, but to make money doesn't mean you can make money. You have to do the right thing at the right time and make money just the result
74. You must first take the capital preservation as the first priority, on the basis of capital preservation to consider how to make money
76. There are only two ways to achieve capital preservation: The first is fast stop. Second, don't bet too much at once.
78. The most basic rule of doing business is to fail.
80. Through your own observation and research, and constantly accumulate experience, the probability of each entry win from 50% to 60%, or even 70%, and each entry do not bet too much, should be only a small portion of the principal. In the long run, you'll be able to "win" long bets.
82. The most basic tenet of the stock market is that at any time, the upside potential of your holding stocks must be greater than the possibility of a fall, otherwise you should not stay in your hands. If you see a danger signal, your winning probability does not exceed 50% at this time.
84. The stock market has never been right, it always go the way they want to go, will be wrong only you
86. All you can do is follow the stock market. See the danger signal, don't half-hearted, don't have illusions, sell all the stock.
88. The basis for buying stocks is three points: basic analysis, technical analysis and big market trend
90. If the share price falls through the support line, the volume is given and the stock is quickly bounced back above the support line, which is an excellent buying opportunity.
92. You have to remember: The stocks you buy are sold to you, and the stocks you sell are bought by others.
94. If the big city is not good, you'd better not buy anything, Ann sit still
96. A big trend, head and tail are very male caught, fry hands should learn how to catch the middle of a section, can catch the amplitude of 70% is a very good result
98. The simplest way to decide when to sell a stock is to ask yourself: do I want to buy this stock at this point? If the answer is no, you can consider selling the stock.
100. The market is never wrong, and your thoughts are often wrong.
102. Stop! Stop! Stop!
104. Risk diversification
106. Avoid buying too many stocks
108. Forget your entry price.
110. Don't trade frequently.
112. Do not flatten down
114. Don't let profits turn into losses
116. When it comes to selling stocks, don't hesitate to make a decisive act.
118. Set the plan and do it according to the established policy.
120. Don't fall in love with any stock
122. Be careful of anyone who gives you insider information.
124. Before you buy a stock, find out all the information about the company, its management, its competitors, its profitability and the likelihood of growth.
126. Learn to stop quickly and cleanly. Don't expect yourself to be right every time. If you make a mistake, the quicker you stop, the better.
128. Don't buy too much stock, it's best to buy a few stocks to make sure you can watch them carefully
130. Check your investment regularly and see what new developments might change your mind
132. Always hold part of the cash and don't put all your money into the stock market
134. Don't try to be a know-how, focus on the industries you understand most
136. Every time you make a mistake, well analyze why you made a mistake, what rules are violated?
138. Oneself, also only oneself, can bear the whole responsibility to the result
140. Concentration is the basic requirement for success in any industry
142. Ordinary people work 8 hours a day, and if you work for 8 hours, you will only be a member of the ordinary. Want to stand higher than ordinary people, see farther, only rely on the efforts of 8 hours outside

"Chenjiang-The wisdom of stocks" reading notes