Pullback is a key point!

The past two days, I’ve been busy preparing for internal training, so I haven’t written many articles. Today, I’ll just briefly share a few thoughts. After yesterday’s midday index pullback, last night I notified the internal classmates that we were getting ready to make a move. The logic is very simple: the situation in the Middle East has clearly eased, and the situation has been brought under a certain degree of control—at least for now, I haven’t seen further deterioration. The probability of the situation getting out of control has already dropped a lot, so this time the index pulling back again is an opportunity![TaoBull]

So why didn’t the big sell-off-and-rally a few days ago get YZ to participate? It’s simple. Back then, the situation kept changing, and especially after being disgusted by that really unreliable person—his fickleness made it so I didn’t even dare to move. There were simply too many uncertain factors. After observing these past few days, the situation is relatively better now. The market has started to be less influenced by the Middle East situation, so this two-day index pullback is a good opportunity.

YZ has been in cash for quite a while. During the internal training, the team’s internal classmates can open their accounts to compare how many days each person has been sitting out in cash, to see who has the most days in cash and who can endure the most. Actually, on the trading path, being in either long or short positions may cause you to miss quite a few opportunities, but in the long run it improves your stability—both in terms of account stability and mindset stability get reinforced. Once that happens, it will help control drawdowns. People who have been trading for the long term all know that controlling drawdowns is the king. Many people aren’t lacking the ability to make money; they simply haven’t yet developed the ability to control drawdowns. So YZ believes: being in cash is also a kind of trade, and it’s a high-level one. YZ encourages everyone to be in either long or short cash positions more often, and just wait for the timing that better fits you!

By today, it’s already the end of the month. This timing is also acceptable, so today I made a move and placed an order for GX N. In the early session, there was clearly some high-to-low rotation. When two high-position popular stocks were divided, GX NY strengthened against the trend and became a consecutive-limit-up target. I even bought into the popularity list last night! Here are some注意 points about placing limit orders: if you don’t have an advantage in the channel, classmates can place a “overnight order” one evening earlier, then after the next day’s open, observe the strength and decide whether to stay or leave. If the order doesn’t match enough before 9:19 a.m. and the follow-through isn’t strong, you can cancel the order before 9:19. This way, placing an overnight order early doesn’t really involve much downside—but if it does meet your conditions, the probability of getting in is much higher!

For stocks that strengthen against the trend, besides the consecutive-limit-up direction, there’s also a capacity/short-term trend-style target: DF XN. This reversal-back (engulfing) is also fairly strong. Yesterday, during the recap, a disciple made a pre-plan for HN XN that was at a relatively low position and, from a logic standpoint, it checked out. But today, the funds didn’t choose it—instead, they chose an Eastern XN with a smaller market cap, more active stock behavior, and a position in the middle. So right now, with market activity shrinking, the market tends to prefer small caps. Anything with a slightly larger market cap doesn’t seem as attractive for people to pull. Another point is that, currently, the market is demanding increasingly more from traders’ on-the-spot execution ability. Regarding some of the skills for on-the-spot trading, YZ will strengthen them for everyone step by step in the internal training that comes next!

At the moment, the market is still mostly rotating. Today, market funds focused on energy metals, minor metals, and chemical-related sectors. First, they’ve already fallen a lot, so there’s a repair/relief demand. After all, expectations of inflation and price increases are still there. For these big-trend-style products, it’s still hard to say whether the move is already over—but whether it can form a new big wave again afterward is something we can’t determine for now. It depends on how the market forms consensus and whether it can rally together in the next phase.

Anyway, right now we can’t get anxious. Step by step is the way to go. Advancing steadily while ensuring safety is the safe approach!