Thoughts on the strong getting stronger!

Recently, I’ve been chatting with some friends, and I’ve noticed a very common phenomenon!

That is, shooting randomly during trading hours!

Some classmates might not agree, but they don’t listen when I tell them, they hear but don’t act, they act but make mistakes, refuse to admit them, admit but don’t change, change but still resist!

Let me share a little story of my own!

I totally understand this feeling. When I was in college, I found a stock that was rising very well. To pick that stock, I used all my tricks. I thought it was a good stock, and I shared my reasoning with my buddy (who was my roommate and stock trading partner). He said it wasn’t good, and indeed, it fell for two days afterward. But then it surged three consecutive limit-ups, and I was so happy and excited!

On the day it hit the limit-up, I wanted to return that comment to him. We argued fiercely over this. Later, I realized I was wrong in some ways, apologized to him, took him out to dinner, and finally eased our relationship!

At the time, I was upset when I was rejected. I insisted I was right, and I wouldn’t accept being wrong.

Brothers, I hope you understand that feeling!

Looking back now, that stock really wasn’t good! At that time, Fengfan Co. was the leader, and you could buy 10 limit-ups in a row. But compared to that, it was far behind! That stock was called Tongguang Cable!

Although I ended up making two limit-ups profit, the experience of holding that stock was extremely uncomfortable. The intraday chart was jumping all over the place. I endured for several days. In the end, I didn’t sell at the highest point. After working hard for days, the cycle was almost over, and I only made about 10% profit!

Sharing this case, I want to say:

Both Fengfan Co. and Tongguang Cable were selected after hours. At that time, I didn’t dare to buy Fengfan because it had already hit the limit-up! I thought Tongguang Cable was also good, so I kept holding it. (This was in 2018, for those interested, you can look it up.)

When a new trend arrives, the leader is the best!

The most advanced operation is to follow the leader throughout until the last day!

Stock selection is more important than technical analysis; holding stocks is more important than switching.

Constantly jumping around like a monkey, actually performing behavioral art in the market!

The hardship of the process, the discomfort of holding stocks, the pain of shattered expectations, the helplessness of pressing the kill button late at night—this cycle is the most exhausting for our mental strength!

Confidence is more valuable than gold!

I have a lot of experience with this! To force myself to develop a relationship with the leader.

I abandoned the action of selecting strong stocks during trading hours!

The reasons are as follows:

If it’s truly strong, why didn’t you notice it yesterday? Why look for it in the chaos during today’s trading?

If it’s truly strong, shouldn’t you have known it for a long time?

If it’s truly strong, shouldn’t it be on the popularity list?

If it’s truly strong, shouldn’t it beat expectations every day, stay alive every day, and remain still in a specific position in your watchlist?

Recently, I’ve been chatting with some friends and found that:

There are several operational ideas that, in my opinion, need improvement!

First, chasing after stocks that turn from weak to strong the next day!

Now, the market sees many stocks turning weak to strong daily, but the probability of them becoming even stronger the next day is very low!

Plus, after buying, you can’t help but fantasize about it becoming the leader and doubling, then showing off everywhere.

But often, the results are disappointing. What’s more heartbreaking is that you buy in, then it reverses and hits your stop-loss. Selling then becomes a repeated face-slapping process!

Recently, the market has been bouncing wildly due to quantitative trading, with fluctuations of over 20 points. Ordinary people can’t handle it, regardless of their position size!

Second, it’s not necessarily good to chase after stocks that turn from weak to strong. After understanding their pattern, I try to buy low at the end of the day, betting on the next day’s weak-to-strong move. My cost is low, so even if I lose, it’s not much!

But the reality is, the market rotates!

What does that mean? I didn’t lose money, but I also didn’t gain. I held for half a month—some hit the limit-up, some sideways, some declined, some went up and down like a roller coaster, making me dizzy!

Occasional failures are tolerable, but long-term success rate isn’t high, so it’s not a reliable pattern!

Third, neither the left side nor the right side works well. I try to buy weak-to-strong stocks, but what if the next day opens high or low randomly? Do you buy or not? We all know that if a weak-to-strong stock doesn’t open at least 5% higher the next day, it’s below expectations. You should sell quickly; if you’re slow, it’s a free fall!

Plus, human energy is limited. How can I accurately hit every weak-to-strong move every day? Even if I do, if the opening price is wrong within the first 15 minutes, I might sell at the high or cut losses in deep water. Then, I might get tempted to do it again. And what happens? Shooting randomly during trading hours!

I’ve tried all these operations, often!

My honest feedback: As long as I’m shooting randomly during trading hours, nine out of ten times I lose money. The remaining one is luck!

So, what should I do if these don’t work?

Answer: Core stocks!

Sharing my experience of losing money, I’ve found a common pattern through countless failed trades:

Core stocks.

Longevity! Continuous surprises! Grouping! Trends! Holding long-term! No reckless operations! Clean watchlists! Focused attention! The strongest! Low-frequency, high-confidence, certainty!

Core stocks are not necessarily core from the start!

First, choose the right sector!

Generally, the strongest sectors tend to produce leaders. But what if the strongest sector shows significant divergence?

At that point, either stay out for a while, wait for a low point to gather new momentum, and then find the leader stock!

Or, pick a second-tier sector, where weak stocks become strong, and turn it into the strongest sector!

Then, funds rush to pick a leader within that sector!

We all know that in a phase of leadership competition, the most common scenario is weak stocks becoming strong, where the strongest can’t hold, and the weakest unexpectedly becomes the top contender!

The same logic applies to sectors!

Second, uniqueness!

The stocks that truly make you money are scarce—so scarce that a flower blooming on cow dung is a perfect metaphor!

In our decades of life, we have many friends, but only a few who can lend us money—just a few fingers’ worth.

In my mind, there are only two types of stocks:

Profitable stocks and losing stocks!

Losing stocks are diverse, each with its own story.

Profitable stocks share a common trait: uniqueness! Unavoidable! Must-do! Like being caught by the balls! Like Mount Hua’s single path—you can only walk this way!

Third, continuity!

Making money requires persistence! Jumping from one place to another, looking dazzling and spectacular!

Day-trading costs are like wrecking the place! Today you wreck others’ place, tomorrow others wreck yours! No one is better off! Backstabbing each other!

So, stock selection is especially critical!

We must pick stocks with sustained potential from the start.

Discard those that are not sustainable!

Without the wisdom to discard, you won’t pass through the narrow gate!

The easier path is full of temptations and traps!

The harder path may hide blessings and gifts behind the disguise!

Weak often pretend to be strong; strong often pretend to be weak!

How do we tell the difference?

It’s simple: look at their weakest moments—can they surprise you?

Most friends get excited when they see strength, unable to distinguish true strength from false.

In my view, time doesn’t lie!

It can pretend for a while, but not forever!

Patience and observation reveal the truth. You can tell if someone is real or fake in a glance!

In my experience, stocks that can’t last five days are trash!

Stocks that surge massively but fail to regain strength are trash!

Stocks that weaken for two days or more in a row are trash!

When your eyes see only trash, only cow dung, your aesthetic will improve, and you’ll find those rare flowers!

That flower, with its spotlight and attention, will shock under the bright lights. I hope you’ll experience that someday!

Here, I throw a brick to attract jade—just to guide you: group together!