Discussing the trading philosophy during losses! March summary - 2.44% loss, 350,000 yuan

Today let’s talk about operational philosophy. [Taoguba]

There are two days left this month, can we turn losses into gains? However, after the market closed on Friday, US stocks plummeted, and crude oil surged, which likely means a lower opening on Monday. Sometimes a smaller loss is a gain, and so far, we are at least outperforming the index.

In the past two months, I haven’t been able to make money; last month I made a small profit, and this month I’ve made a small loss.

As of today, there has been renewed conflict in the Middle East, and some previously uninvolved low-rebound stocks have started to participate.

This makes me believe that the market performance for the following week will not be good.

Over the past month, there have been many times when I didn’t want to participate in market operations.

The difficulty of operations is just too high; if I don’t operate this month, I can outperform most people.

There’s not much to review this month; I’ve tried not to operate, and most of the stocks I’ve chosen haven’t reached the buying point.

This month’s summary is to talk about my operational philosophy.

Many people think that the stocks I choose are randomly selected or without any thought.

In fact, I just haven’t documented the thought process nor listed the logic for screening stocks.

This is also meaningless because everyone’s thoughts are different, so the market choices are different.

However, there are two points that are definitely common.

The first point is: the themes of the stocks must be in the currently trending sectors, and this theme must have good news or potential good news; this is the basis for the market to rise strongly again.

The second point is: it must break through the high point, either the high point from yesterday or the high point from the morning. The reason is very clear; if the market cannot break through the high point from yesterday or today, it indicates that the market funds are starting to not recognize it, or that there are no funds entering the market, indicating that it has been eliminated by the market.

Combining the above two points is completely sufficient because we are operating on a short-term basis; the effectiveness of good news is only valid for that day or the next day. If a piece of good news appears, and there is no market movement today and tomorrow, it indicates that this news is not actually good.

Or, it means the market does not recognize this news, or that there is a problem with this news.

This is the way of trading.

What is meant by simplicity in the grand scheme? It is just this.

This method will only perform well when the market is good; when the market is bad, the chosen stocks simply cannot rise.

Another important point is that you must choose three stocks.

You can’t choose many stocks just because you see many promising directions; that is incorrect.

You must force yourself to select your top three stocks that you believe in the most. If you can’t select the two or three stocks you believe in the most,

it indicates that your thinking is definitely chaotic, and at that point, you should not operate; chasing any market will lead to being trapped.

I believe what I’ve said is clear enough; let each person think about the details.

The above content comes from a person who has previously multiplied their investment tenfold but has incurred losses this month.

If you find some of this reasoning useful, please give it a thumbs up; if there are few likes, I won’t embarrass myself next time.