stock manipulator

Chapter 4 How to Judge the Right Time for a Stock to Run
Stocks, like people, have their own characteristics and personalities.Some stocks have neurotic traits, sensitive personalities, and erratic trends; some stocks have bold personalities, direct performance, consistency, and strong logic.

To engage in stock operations, you must understand and respect the individual characteristics of various securities.In their respective dynamic changing environments, their trajectories are different but predictable.

The stock market never stops and changes are happening all the time.Sometimes, the market is very slow, but it will not rest at a certain price.They always run slightly up or down.When a stock enters the state of determining the trend, it will automatically and continuously run along the specific track of the entire trend process.

When this wave of stock market moves begins, you will notice in the first few days that the trading volume increases dramatically as the price gradually rises.Then there will be what I call "normal adjustments".During this adjustment process, the trading volume is much smaller than the volume in the first few days.This small adjustment of the market is normal, don't worry about this normal change.However, one must be very vigilant against abnormal fluctuations.

After a day or two, the stock price movement will start again, and the trading volume will increase accordingly.If this is a real start, then the market will return to the natural and normal pre-adjustment area within a short period of time, and climb to the high area to operate.This run should maintain strong momentum for a few days, although of course there will be small intraday pullbacks in between.Sooner or later, it will reach a certain point, and then form another wave of normal correction.When this normal callback occurs, it should be on the same straight line as the first normal callback position. When the trend is clear, any stock will operate according to this natural law.In the first part of this wave operation, the distance from the previous high point to the next high point is not very large.You'll notice over time that it has a lot of room to run upwards.

Let me illustrate: Suppose a stock starts at $50.In the first leg of its run, it could gradually rise to $54.A day or two of normal correction might pull it to around $52.5.Three days later, it will attack again.At this stage, the stock may rise to $59 or $60 before it enters the normal correction process again.But it does not react immediately, it may only decline 1 point or 1.5 points in between, whereas if a natural reaction occurs at such a level, it will generally decline 3 points.When it resumes rising after a few days, you will notice that the volume is not as high as it was when it started running.This stock began to become tighter, with more buying and less selling.If so, this rally will be much faster than previous ones.The stock could easily advance to 60, 68, or even 70 from the previous high without any natural reaction in between.If a normal callback occurs, the magnitude of this callback will be large.It could easily drop to $65, and even then it would be just a normal pullback.If the range of the callback is around 5 points, it won't take long for the rising market to make a comeback, and the market price of the stock will be at a new high.This is where the time element comes into play.

Don't let this stock kill you.Now that you have made a decent profit, you must be patient, but don't let patience become such a hindrance that you ignore the red flags.

The stock began to advance again, about 6 or 7 points one day, and perhaps 8 or 10 points the next day--extremely active trading, but, in the last hour of the day, Suddenly there was a wave of abnormal dips, with a drop of 7 to 8 points.At the opening of the next day, the market fell again by about 1 point, then started to rise again, and the market was very firm at the end of the day.But the next day, for some reason, the market failed to maintain its upward momentum.

This is a looming red flag.In the course of this market run, there have only been some natural and normal reactions before that.At this moment, an abnormal callback suddenly formed-the "abnormal" mentioned here refers to the fact that in the same day, the market first formed a new high price upwards, and then retracted downward by 6 points or even more Many——this kind of thing has never happened before. Once abnormal stock market changes occur, the market is sending you a dangerous signal. This is a dangerous sign that cannot be ignored.

In the process of this stock's natural rise, you have enough patience to hold the stock steadily.Now, we must maintain a keen sense of danger signals and attach great importance to them, clear positions decisively, and wait and see.

I am not saying that red flags necessarily lead to adverse outcomes, as mentioned earlier, the rules of operation in stock market volatility are not 100% correct.But if you continue to pay attention to these red flags and think long-term, you can profit handsomely.

A very gifted speculator once told me: "When I see a red flag coming my way, I don't hesitate to get out. A few days later, if everything looks right, I get back in. That way I will neither panic nor lose money. I have realized the connotation of this method. For example, I am walking along the railway line when I see a train driving towards me at a speed of 60 kilometers per hour When I come, I don’t just sit by the railroad tracks and let the trains roar by, I stay away from the railroad tracks for a while, and after the train passes, I will get closer to the railroad tracks again if necessary.” I have always regarded this as speculative wisdom vivid description.

Every sensible speculator is on high alert for red flags.Strangely enough, what annoys most speculators is that when they muster up the courage to abandon their decisions, they are extremely reluctant.They hesitated, and in the meantime they found that the stock market had gone up a few more points, which swayed their minds.Then, they say, "Next time the inflection point comes, I'm going to get out!" When the inflection point comes, which is inevitable, they forget what they should be doing.Because in their minds, the stock market has turned around again.But that inflection point was only a temporary reversal, and it would be over soon, and then the stock market began to fall sharply.Because of their hesitation, they have to eat the bitter fruit.If they used the guiding principles, they would know what to do, which would not only save money but also reduce panic.

Again, I stress that human nature is an investor or speculator's worst enemy.Why can't a stock resume its rise after falling in a strong rise?Of course it will be in a flat state.But why want it back to the state you want?Hesitant types of speculators will probably not take full advantage of these opportunities if they are what you want them to be.

For those who intend to make speculation an important career, I would like to emphasize the following points again, and some unrealistic ideas must be eliminated: It is impossible for a person to continue to speculate successfully every day or every week; When you make a decision, you only succeed a few times a year, maybe four or five times.Other times you have to wait for the market to form the next bigger situation.

If you time the market launch correctly, your initial decision will pay you handsome profits.From that moment on, all you have to do is stay vigilant and watch for red flags so that you can get out in time and convert your paper profits into real money.

Remember this: While you're sitting on the sidelines, speculators who feel compelled to trade frequently are laying the groundwork for your next pounce.You will reap the profits from the mistakes of these speculators.

Speculation is not fun.Most speculators are constantly contacting brokerages or have endless trading calls. After their work day is over, what they discuss with friends at parties is also the topic of the stock market; market announcements and data are always printed in their minds .They are so obsessed with stock market price fluctuations that they miss out on bigger moves.When the trend is gradually forming, most people almost make a wrong judgment.Those who insist on profiting from day-to-day volatility will not profit from better market turns to come.

This shortcoming can be corrected by keeping and studying records of stock price movements and finding out how they have moved, taking time into account.

A few years ago I heard of a very famous and successful speculator in the mountains of California who received only three days old quotations each day.Every year, he will call the broker in San Francisco 2 or 3 times to place an order for stock trading.A friend of mine who had been in a brokerage office for a long time felt weird and did some research.He was amazed to know that the man was completely away from the trading market, rarely visited the exchange, and occasionally traded a lot.Later he met with the man, and during the conversation he asked: Why can you still track stocks in such a remote place?
"Good question," he replied, "I treat speculation as a business. If I let some small fluctuation in the stock market get me confused, I will fail, so I avoid exposing myself to small changes in the market. I like Come back here and think about it. You see, I have made detailed records of stock price movements, which have given me a clear picture of the stock market's upcoming movement. The real movement will not end on the day it starts, and it will take a long time to complete a wave of market movement. Going to this mountain can get a good environment to give the stock market enough time to run. But one day I will determine the price and record it in the transaction sheet. If I find that the price I wrote is different from the track of the stock market price, I will go to the city immediately Be busy."

This happened many years ago.The man from the mountains maintained his unique way of operating for a long time and made huge profits from the stock market.He was an inspiration to me in a way.I researched harder than before, trying to combine the time factor with all the data I edited to find a pattern.With continued effort, I was able to integrate my records and data with each other, which helped me predict upcoming markets with considerable accuracy.

(End of this chapter)