Having experienced many ups and downs in the stock market, I have gradually accumulated some experiences and lessons.

One particularly important lesson I've learned is the importance of "patience"! - patiently waiting for the trend to form, patiently waiting for the best timing, patiently waiting for the stock to rise - all processes require patience! - deluding oneself into thinking that one can buy low and sell high, deluding oneself into thinking that one can catch every wave, deluding oneself into thinking that one can earn every profit, is nothing but a fool's dream!

Without patience, everything else is just empty talk!

"Sitting and waiting" - how simple these few words are, but how many people can really "sit still"?!

This article is a classic interpretation of "patience" that I have seen.

Jesse Livermore's ultimate realization is a single sentence: money is made by sitting and waiting.

I translate it into operational terms: firmly base your trades on the medium and long-term moving averages.

This sentence is the supreme and ultimate strategy in the financial market that encompasses all excellent tactics, and apart from this, most of the rest are dross and deception.

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Understanding this sentence requires extraordinary wisdom and a vast amount of practical experience, 99% of the losers, for their entire lives, cannot understand this sentence. No matter what K-line cycle you do, going against the medium and long-term moving averages is a dead end.

I can be sure that 99% of the people in this forum also cannot understand this sentence.All of your fears and restlessness stem from not understanding this sentence.

Failure and success both originate from understanding or not understanding this sentence.

"Money comes while you wait" is the cornerstone of financial trading, a single sentence that lays the foundation for all financial trading, and a single sentence that encapsulates and includes all financial profit-making techniques.

The golden words "Money comes while you wait" are destined to accompany the life of all successful traders. Those who are confused about trading are all due to not understanding this sentence.

Stability - trading is waiting, waiting for the medium and long-term moving averages you have chosen.

Trading is persistence, not being discouraged by temporary failures, and always adhering to the principles you have chosen. Trading is like a crocodile hunting, quietly waiting, patiently waiting, and obtaining the profits that belong to you. Those with divided attention may succeed in other industries, but in the ruthless financial market, it is too difficult, even if you are extremely talented.

The popularization of K-line studies will only accelerate the mutation of K-line studies themselves. It can be foreseen that in the future, on the main varieties, the probability of K-line states from 15-minute K to daily K will change rapidly, and the deviation of K-lines will greatly increase, especially the most mainstream daily K-line. The market has its own wisdom. In the end, most people will lose money.

It can be foreseen that in the future, the market will become more and more mature, and it will be the world of small K-lines and large moving averages. K-line studies themselves will be mercilessly trampled by the mutated market.

As the first trend indicator, moving averages will always have an unparalleled status in the financial market!

No matter how powerful your funds are, you can change the probability of K-lines, manipulate the probability of K-lines, and even manipulate small moving averages, but the status of medium and long-term moving averages cannot be challenged by any powerful main force. Whether intentionally or unintentionally, they must accept its constraints unconditionally.No matter what K-line cycle you are engaged in, only by accompanying the development of medium and long-term moving averages can you achieve the highest level of safety and the highest profit. This is a mathematical philosophy that no one can challenge. I do not want to explain this statement any further. As long as human greed and fear still exist, this statement will never be outdated. The stop-loss is only different due to the different K-line cycles you choose.

Loyalty - absolute loyalty to the medium and long-term moving averages you have chosen is the supreme and ultimate tactic in specific operations. Looking at a long cycle, this tactic is destined to be unsurpassable. It is the embodiment of the great way of trading. Only the paranoid of great success can understand this statement. Quietly wait for your moving averages and hold the inevitable path for the market to start. Trading is understanding the inevitable path of the market, waiting for the inevitable path of the market.

In my view of stop-loss, what I express is that if you can't afford to lose, you absolutely can't win. In my view of operation, I want to express that if you don't have the supreme determination to be loyal to the medium and long-term moving averages you have chosen, it is difficult to succeed. Short-term moving averages cannot carry the fluctuations you need. Choosing too small a moving average is as ridiculous as choosing to fall in love with a prostitute. You can wait for the principle of the medium and long-term moving averages in your heart, which is the inevitable path for the market to start, and it is the key to continuously helping you make a large profit in the wave.

Profit requires time, profit requires stability, profit cannot withstand repeated tossing, and it cannot withstand repeated stop-loss.

For your own trading rules, you need to guard them as if guarding your own life.

To gain, you must give up, give up all the market conditions you can't understand, can't toss, endure alone and wait for the big trend view rules that you can clearly execute.

The art of trading itself is incomplete, and perfectionists are doomed to suffer. Trading is a kind of incompleteness. The philosophy of "great success seems to be incomplete" is the best to describe trading.

The fluctuation between medium and long-term moving averages and market prices is much smaller, more relaxed, and simpler than short-term moving averages. The philosophy of giving and taking needs to be slowly and carefully experienced.Oftentimes, when it comes to making a profit, one should take a relaxed and open-minded approach. If you are obsessed with perfection, it will inevitably increase the difficulty of operation. The principle of simplicity is not a joke. The more complex the indicators, the greater the difficulty of operation, and the higher the probability of failure.

Skillfully Use the 60-Day Moving Average

When comparing the choice between the buying point and the selling point, the selection of the buying point is more important than that of the selling point. It can be said that grasping the buying point is equivalent to grasping the profit space. The trend reversal of the moving average is the change in the trend, and the trend reversal is centered around the 60-day moving average. The 60-day moving average of a stock, also known as the quarterly moving average, is an important dividing line or watershed for the strength of short-term trends, and we must pay attention to it!

The 60-day moving average plays a significant guiding role in operations. Since many medium-term market makers' accumulation time is around a quarter, the 60-day moving average becomes a powerful tool for swing trading: when the stock price breaks through the 60-day line, it is often a signal for the start of a medium-term trend; and when the stock price falls below the 60-day line, it means the end of the medium-term trend.

The 60-day moving average is the average closing price of a stock in the market for the past 60 days, and its significance lies in that it reflects the average cost of the stock over 60 days. The 60-day moving average is the closing average of the past three months, which belongs to the medium and long-term trend and is of great significance to the later trend of the stock.

If we hold stocks below the 60-day moving average, sometimes there will be false signals. The difference between true and false is generally that after breaking through the 60-day moving average, if the stock cannot stand above it within three days, we should pay attention to the choice of stocks.

The key points of using the 60-day line are:

1. When the stock price is in the low area, the area before and after the 60-day moving average turns upward can be considered as the main force's cost area.

2. The longer the time the stock price falls before breaking through the 60-day line, the greater the possibility of a reversal after breaking through. When the stock price rises above the 60-day moving average, it must be accompanied by a continuous increase in volume, otherwise, it cannot be considered effective. Be especially careful of sudden occasional volume increases, which may lead to another decline.3. The stock price must meet the condition of the 60-day line turning upwards when it breaks through the 60-day line. If the line continues to trend downwards, the breakthrough is often a rebound market and can be considered invalid.

4. When the stock price breaks below the 60-day line in the high price area, it marks the end of an intermediate trend.

The so-called low price area refers to the range where the stock price is within the collection range of the medium to long-term main force. The rise from the lowest point generally does not exceed 30%. In this case, the area near the 60-day line is the cost range of the main force. After breaking through the 60-day line and then approaching it again, it is mostly the main force's washing behavior. The stock price almost 100% retraces when it first surges above the 60-day moving average.

Investment Strategy: When the stock price in the low price area breaks through the 60-day line that has turned upwards, it indicates that the intermediate trend has started. This is a low-risk, high-return, and high-efficiency buying opportunity, and it is advisable to follow up in time and buy heavily.

The so-called high price area refers to the range where the stock price is significantly above the main force's cost, especially more than 100%. In this area, if the stock price effectively breaks below the 60-day line, it has generally gone through a relatively long period of horizontal oscillation, and the main force's goods have been almost sold out. Therefore, when the stock price breaks below the 60-day line after a period of horizontal oscillation in the high price area, especially when it fails to rise above the 60-day moving average during the rebound and falls again, this is a prelude to a sharp decline. Do not harbor illusions; timely selling can help you avoid the coming storm.

When buying stocks, we should not pick up bargains at the 60-day moving average. The idea of buying stocks at the lowest point is wrong. When the market starts a wave of the trend, strong individual stocks start early in the morning, and those that have always been below the 60-day moving average are not rising. I do not buy stocks below the 60-day average price line for several reasons:

1. Below the 60-day moving average is an important bearish signal, and the transition from bear to bull is relatively slow and long.

2. Below the 60-day moving average may be the place where the main force concentrates chips, and I can't grab it.

3. Below the 60-day moving average is a place that many retail investors like to go, and there are no major players where there are many retail investors.

4. Although it looks cheap below the 60-day moving average, it often hides a greater danger.5. A break below the 60-day moving average often marks the beginning of a long-term downtrend, trapping you without any room for negotiation.

6. There are plenty of stocks above the 60-day moving average in the market; why abandon the strong and choose the weak?

Key Points for Buying Operations:

1. When the 60-day moving average starts to flatten at a lower level and begins to turn upwards (turning upwards means that the value of MA60 begins to show a reversal from falling to rising), and the exchange rate stabilizes above the line and is confirmed after a pullback, it indicates that there is a sign of improvement in the medium-term trend;

2. The trading volume in the medium-term uptrend should be in a moderate process of increasing volume;

3. Aggressive investors can buy when the 5-day moving average starts to rise upwards;

4. After buying, it is crucial to hold the stock and not to make short-term differences easily.

Key Points for Selling Operations:

1. When the 60-day moving average starts to flatten and begins to move downwards, and the exchange rate is closed below the 60-day moving average, and it is confirmed that it cannot stabilize above the 60-day moving average, it indicates that there is a sign of weakening in the medium-term trend;

2. The volume of the falling process is reduced, and the rebound is unable to increase in volume.3. Aggressive investors can take profits and sell out when the price effectively falls below the 5-day moving average line;

4. After selling, do not casually try to catch a rebound.

Practical case of the 60-day moving average buy signal:

1. Recent buy point: The stock price moves along the 60-day moving average line, and the closest point to the 60-day moving average line is the buying point.

After a long-term decline, when the stock price stands above the 60-day moving average line for the first time, aggressive investors can follow up, and cautious investors can wait until the stock price washes the plate and readjusts to the area near the 60-day moving average line to buy after getting support, which is extremely accurate. Note that the shape of the 60-day moving average line at this time must be upward or flat.

2. Swing buy point: The stock price repeatedly crosses the 60-day moving average line many times, just like swinging, and it is difficult to grasp at this time just by relying on the daily K-line, and it is necessary to use the weekly technical signal. For example, when breaking through the 20-week moving average line.

3. Prodigal son buy point: It occurs in a medium adjustment market, and when the stock price briefly crosses the 60-day moving average line, it can be bought in the same direction.

Key points for selling operations of the 60-day moving average line:1. The 60-day moving average line has flattened and started to move downward, with the stock price closing below the 60-day moving average and confirmed to be unable to stabilize above it, indicating signs of a weakening medium-term trend.

2. The volume of the decline is shrinking, with the process of a bearish trend, and the rebound is unable to increase in volume.

3. Aggressive investors can sell for profit when the price effectively breaks below the 5-day moving average line.

4. After selling, do not casually chase the rebound.

Real Combat Case:

The stock broke through the 60-day moving average line in the early stage and had a strong upward trend. Then, following the overall market, the stock made up for the decline, and later stabilized at the 60-day moving average line. After several days of consolidation, the second arrow's retest of the 60-day moving average line was effective, and at this time, a good short-term buying opportunity appeared. In the following trading days, the stock showed an upward trend, continuously soaring, and appeared in a four consecutive board, showing the style of a strong stock.

Real Combat Skills

All major forces and speculators attach great importance to the lifeline. Once the lifeline turns upward, the main force generally has the courage to hold a large position, and if the lifeline is once broken, the trader will generally choose to clear the position unconditionally for safety reasons. Therefore, for retail investors, in the holding strategy, they should attach great importance to the guiding significance of the lifeline, at least to keep their direction consistent with the main force. Although the lifeline can also be used in the minute, weekly, and monthly systems, it generally refers to the daily line without special emphasis.

Graphic Features:After a prolonged period of decline, the stock price has shown signs of halting its fall and rebounding. The day when the stock price rises above the 60-day moving average with increased trading volume is referred to as the "Entry into the Takeoff Line," or simply Point A. Here, we imagine the 60-day moving average as the runway of an airport; an airplane can only taxi on the runway after being pulled out of the hangar. Similarly, only when the stock price rises above the 60-day moving average can it potentially break free from a long-term downtrend and enter a state of horizontal fluctuation or an upward trend.

We refer to buying stocks below the 60-day moving average as "irrational operation," because there is still a possibility that the stock price will continue to fall when purchased below the 60-day moving average. Conversely, we call buying stocks above the 60-day moving average "rational operation," as only when the stock price is firmly above the 60-day moving average can it break free from the downtrend and potentially shift to a state of horizontal fluctuation or an upward trend.

Trinity "Entry into the Takeoff Line": During the period when the stock price rises above the 60-day moving average, there must be a simultaneous increase in trading volume and the MACD indicator line must rise above the zero line. If all three conditions are met, it is a trinity-style entry into the takeoff line, which is much stronger than having no volume and the MACD still below the zero line. Only a plane that enters the takeoff line in this way can taxi and potentially take off.

Key Points to Note:

(1) After a prolonged period of decline, when the daily K-line approaches the 60-day moving average and surges past it with increased volume, it is called "Entry into the Takeoff Line," marked by an A arrow pointing to that day.

(2) The surge past the 60-day moving average with increased volume could be a single-day surge, a two-day surge, or in the form of "two yangs sandwiching one yin · bull formation," and in some cases, it may appear in the form of "candied hawthorns."(3) Before the aircraft reaches the "takeoff line," there is no hope for it to take off. In other words, before the day marked by the 'a' arrow, the stock price has no hope of starting up.

(4) After the aircraft enters the "takeoff line," it is only then that it has the possibility to take off. In other words, after the day marked by the 'a' arrow, the stock price has the potential to start up.

(5) We refer to buying stocks before the 'a' arrow as "irrational operation," and buying stocks after the 'a' arrow as "rational operation."

It is important to emphasize that for the stock price to stabilize above the 60-day moving average, it must be accompanied by an increase in trading volume.

Achieving success in trading is difficult, and this is inevitable. Otherwise, there would be no workers and entrepreneurs in society. The difficulty of successful trading is no less than that of successful entrepreneurship. There is no reason, those who use it know. What is the holy grail of successful trading? Small losses and big gains! Small losses refer to the accumulation of less losses, not the number of times you lose. Big gains refer to the accumulation of more earnings, not just a single huge profit. All means and strategies are centered around this goal. How can this be achieved?

Three elements: discipline adherence + capital management + entry and exit signal system

Adhering to discipline is the foremost. The so-called importance of mentality refers to discipline. Not being emotional, impulsive, or irrational in trading, which appears to be a psychological issue, is actually rooted in the violation of discipline. "Plan your trade, trade your plan." This is discipline.

Capital management is about controlling the maximum loss limit for a single trade. It is achieved through position control and strict stop-loss. Why is capital management necessary? This is related to the holy grail of trading: Why not promise that small losses are the number of times you lose? It's because it's unsolvable. You can never achieve fewer losses.

The entry and exit signal system is placed last, why? Because, no matter how hard you try, under the premise of not destroying the integrity of the system, there is almost no system with a success rate exceeding 50%. No theory, no wisdom can do it. Comment: I have been using the trend-following system for trading for many years, and the statistical result of the win rate is around 40%. Although the win rate is less than half, in the not-so-good market in recent years, it is still profitable overall. Therefore, the success or failure of trading is not necessarily related to the win rate, but a balance needs to be sought between the win rate, the profit and loss ratio, and the bankruptcy rate.

What is a single success in trading? Direction + space. These two, the direction can be achieved with a so-called technical accuracy of more than 90%; but the size of the space cannot be accurately predicted. Without the guarantee of space, the correct direction results in: roller coasters and making money without leaving, but losing money. This is the truth of the low success rate. (Chan theory and Cicada Jie are all using this means to deceive people.) The holy grail of successful trading is these three elements, and the requirement is to achieve 100%. The time limit is: a lifetime.The so-called issues of Tao, Law, and Technique, Tao is the heart method and concept, Law is the execution of discipline, and Technique is the method and skill. According to the importance, Tao is the most important, Law is the second, and Technique is the third. However, when learning, one should start with Technique to enter Tao, which can be more smooth. If one starts with a big talk about Tao, it can only be a castle in the air, a rootless tree, which may make you an excellent commentator, but not a qualified trader.

Trading begins with cultivating the mind, and those with a pure heart win.

As we all know, from the perspective of behavioral finance, investors are limited rational or even irrational, and their behavior in the investment process is easily dominated by emotions, which is indeed the case. It is not difficult for us to find that many investors find it hard to be objective, even if it is a program trading strategy, it is also based on historical data or common methods of the market written by people, sometimes it will also be changed due to the fluctuation of subjective emotions. Because of this, we have to pay attention to the important position of psychological factors in investment. A healthy and good psychological state can help us enhance our inner strength, so as not to drift with the tide in trading and lose ourselves.

Trading is a game set for human weaknesses, and the capital market is actually a game field of human nature. If we want to be an excellent player, we must first understand the rules of the game, that is, to understand ourselves and human nature. Cultivating the mind can help us return to our true self, know the weaknesses of our own human nature, and then take the right medicine, constantly repairing the psychological world when investing. Seeking peace in the inner world can keep us calm, better avoid the disturbance of various external factors, learn to be content and happy, not be tempted by benefits, adhere to our own trading philosophy, and only in this way can we always maintain an objective attitude to analyze the situation, focus on investment and not be kidnapped by investment.

Nowadays, more and more people in the investment industry, while focusing on trading, also pay attention to the cultivation of the inner world. In addition to trading, they no longer immerse themselves in market research and strategy correction, but turn to tea art or traditional culture to settle down. As for why this trend has emerged, I think a big reason should be that as the trading years increase, they gradually begin to realize how much the impact of emotions and temperament on the success or failure of trading, so they try to start from the perspective of cultivating the mind, adjust their mentality in the trading process, trade with the soul, restrain desires, and enjoy a freer life.

The author once saw a story on the Internet about a person who was very proficient in Yi Shu divination and calculated that his beloved vase would break at a certain time on a certain day, so he decided to protect it at all costs on that day. He placed the vase in the center of the table on that day and guarded it without leaving. When it was time to eat, his wife saw that he had called him several times but did not respond, and was very angry. She came forward and slapped the table hard, and the vase fell to the ground and broke. The person suddenly realized that he had not included himself in the system, so he could not grasp the impact of his own behavior on the outcome of the event. Trading is also like this, the trading behavior of investors affects the fluctuation of prices, and the price fluctuation in turn intervenes in their behavior, the two are cause and effect, and feedback to each other. In such a chaotic system, soul trading is particularly important, it can achieve the harmonious unity of the individual and the whole, and make investors and the market form effective interaction.

There is a saying: "Trading begins with cultivating the mind, then the concept, then the strategy, and then the skills. People often do the opposite, and there are many stories of doing twice the work and getting half the result!" The general meaning of this sentence is that trading that starts from the self can be free to give and take, making trading a condiment of life rather than a necessity; secondly, having a correct trading concept can make us fully grasp the trading opportunities, and there will be no situation of only seeing the trees and not the forest; then, an effective strategy can ensure our offensive and defensive balance and proper progress and retreat in the trading process; the final investment skills are conducive to finding better entry and exit positions. However, most investors in the market do the opposite, so they always spend a lot of effort but do not get the ideal investment results.

Finally, I would like to give you a sentence: "The enemy of successful investment is not the opponent in the market, but oneself. From ancient times to the present, those who have succeeded must pay attention to self-cultivation and self-cultivation."