Give a man a fish and you feed him for a day. Teach a man to fish and you feed him for a lifetime. Read these three stories carefully, and you will benefit greatly.

A fisherman looking at the ocean will never think of swimming, and every stock trader coming to the market will not just be thinking about playing around. People can commit crimes for power, bow for beauty, and do everything for money. Humans are born to gamble; when the gamble is good, it's called luck, and when it's bad, it's called bad luck.

The stock market is essentially a gambling house, but betting here is not a simple probability event. Stock trading is a human behavior that superimposes technology and mentality, amplifying fear and greed.

The first story: An old man is fishing by the river, and a child comes by. The wise man asks a child, "A fishing rod and a fish, which one do you choose?"

The child says, "I want the fish."

The old man shakes his head and laughs, saying, "Give a man a fish, and you feed him for a day. Teach a man to fish, and you feed him for a lifetime. Do you understand this principle? The fish will be gone after you eat it, but with a fishing rod, you can catch many fish and use it for a lifetime!"

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However, the child insists on wanting a fish. The old man has no choice but to give him a fish.

So, the child happily takes the fish and leaves.

The second story:

The old man is fishing by the river, and a child comes by, watching the old man's skillful technique, and soon he has caught a full basket of fish. The old man sees the child is very cute and wants to give him the whole basket of fish, but the child shakes his head. The old man is surprised and asks, "Why don't you want it?" The child replies, "I want the fishing rod in your hand." The old man asks, "What do you want the fishing rod for?" The child says, "This basket of fish will be gone soon, but if I have a fishing rod, I can catch fish by myself, and I will never run out for a lifetime."Seeing this, you must say that this child is smarter than the first child. But you are wrong, the child took the fishing rod and didn't get to eat a single fish. Because, he doesn't understand the skills of fishing.

In life, having a fishing rod alone is useless, because the key to fishing is not in the "fishing rod", but in the "fishing skills".

The Third Story

There was a fisherman with first-class fishing skills, who was respected by people as the "Fishing King". However, the "Fishing King" was very distressed when he was old, because the fishing skills of his three sons were all mediocre. So he often told people about his distress: "I really don't understand, my fishing skills are so good, why are my sons so bad?

Since they were sensible, I have taught them fishing skills, starting from the most basic things, telling them how to weave the net that is easiest to catch fish, how to row the boat that will not disturb the fish, and how to set the net that is easiest to invite fish into the jar.

When they grew up, I taught them how to recognize the tides and distinguish the fish season. All the experiences I have summarized through hard work over the years, I have taught them without reservation, but their fishing skills are not even as good as the sons of fishermen with worse skills than me!"

A passerby listened to his story and asked, "Have you been teaching them hand in hand?" "Yes, in order to let them get first-class fishing skills, I teach very carefully and patiently." "Have they been following you all the time?" "Yes, in order to let them take less detours, I have always let them follow me to learn."

The passerby said, "You have only taught them the skills, but you have not taught them the lessons. When they go to sea by themselves, without lessons and without experience, they will not catch more fish!"

A one-time profit is just like the child in the first story getting a fish, which is just luck. If you want to make a profit in the long run, you must have your own fishing rod, have some of your own skills, and establish your own trading system. Moreover, any technology needs to be polished in the market to find the stage it adapts to. In the stock market, different technologies are used in different stages, and different strategies are adopted, knowing how to buy but also understanding how to sell. Finally, if you want to survive in the market for a long time and make greater profits, you must also have a complete trading philosophy and a complete trading cycle of market experience. Because the market is fair to everyone, the detours that should be taken will not be less.In recent years, how many once-dominant masters have fallen in the cycles of the market, in the fluctuations of progress, and in the darkness before dawn. Those who only know how to charge forward end up as martyrs; only those who also learn to protect themselves become heroes.

Efficient Methods for Reviewing the Market

1. Identifying popular sectors.

Consistently review the contributions of various sectors in the overall market trend every day, pinpoint the sectors with significant contributions for focused observation, and determine the reasons behind the sector's rise.

2. Conditioning reflex training.

Find some classic stock trends and continuously stimulate your brain so that when you encounter similar trends again, you can predict the next move of the stock.

3. Reviewing one's trading system.

Reanalyze your own trades: the situation of the market at the time, the position of the stock, its pattern, the reasons for entry, and why it resulted in a loss or profit. Only by going through this painful period of introspection can you distill your own trading system, thereby making stock trading simpler.

4. Reviewing the top gainers and losers of the day.

Carefully browse through the stocks that are at the forefront of the gainers and losers list for the day, identify the reasons why the stocks are strong (or weak), accumulate more information about stocks that are favored by capital for speculation, and facilitate the search for hot stocks in hot sectors in the future.Whether a trading system can achieve stable profits depends on whether it can integrate knowledge with action!

Grasp the overall market trend

1. The overall market trend is the barometer of the stock market. The trend of the overall market determines the direction of the entire stock market. Accurately judging the overall market trend is conducive to grasping the high-probability trend of the overall market rising, which makes it more likely to buy individual stocks in the rising market trend!

2. Many people are chasing hot sectors and looking for hot stocks of funds. In fact, this is not advisable for beginners because without certain technical capabilities, they cannot understand the dynamics and layout of funds. They are reluctant to let go when they buy a stock that hits the daily limit, and they rush to cut losses when they encounter a stock that hits the daily limit down!

Find a trading method that suits you

There are many stock market masters, but why are they masters and you are a novice? In short, they have found a trading method that suits them and have established their own trading system!

1. Ultra-short-term trading has a short trading time, mainly to improve the utilization rate of funds, obtain compound interest, and roll the principal larger and larger like a snowball. Experts can achieve more than 10 times a year, but it requires strong technical ability and market sense, a good mentality, and the execution of knowledge and action integration! Not suitable for beginners!

2. Swing trading is suitable for some people. When judging the start of a swing, they enter and exit when they can no longer understand the swing. It is suitable for some people, but you need to be able to see the swing yourself!

3. Medium to long-term trading is suitable for beginners. After looking good at a stock, buy it and hold it until it reaches your own profit target, which is easy and worry-free!Long-term and medium-term trading is suitable for novice stock market beginners and those who value investing, while swing trading is suitable for stock market traders with a certain level of ability, and ultra-short-term trading is suitable for stock market masters. Choosing the right direction is more important than hard work. If you want to survive in the stock market for a long time, you must choose a trading method that suits you!

Unity of knowledge and action, execution in a fool's way

It's easy to know, but it's hard to do. A trading system has been built, but various problems will be encountered in the execution process. Only by solving all the problems can one mature!

1. Short-term trading becomes long-term trading. Originally planned to do short-term trading and exit in 3 days, but the trend was not judged well. After buying, the stock has been fluctuating, and it's not easy to leave or stay, and slowly the short-term trading becomes medium and long-term!

2. A small loss becomes a big loss. A stop-loss position should be set when entering the market, and the execution must be resolute. Stop immediately when the stop-loss position is hit!

3. A profitable order becomes a loss. Originally, there was a profit, but always greedy, wanting a greater profit. As a result, a large pullback, afraid that the trend has changed, directly cut the meat and exit. Just after selling, the stock starts to rise!

4. The stop-loss position should be set reasonably, otherwise, it is easy to stop as soon as there is a pullback, and then the market continues to rise, which has nothing to do with you!

Finally, I would like to share the following five golden rules with you. Keep them in mind, and they will be like wings to a tiger for you.

Stock Trading Golden Five Rules1. Never waste time on weak stocks! With the increasing number of listed stocks, there may be tens of thousands in the future. I dare to say that 8000 stocks will be ignored by everyone! The intraday chart is like an electrocardiogram, with a penny playing for a whole day. The cost of time is more expensive than the cost of capital! Time is irreversible...

2. Look at the historical K-line of the stock price, there are short-term sharp rises and falls, do not touch it! When you come out to mix, you always have to pay back. You go to see all the historical speculative stocks, what is the trend after speculation? A mess! Speculation for a month, the vitality is overdrawn and it takes several years to recover!

3. Pay attention to the timing of the entry. Looking back, it seems that it is correct to enter a stock at any time, but in fact, looking back at the trend at that time, the good timing is just a moment! When a stock starts to move, it is used for observation, not for entry! Because almost every stock will move, and there are only a few that become the main rising trend!

4. To do stocks, you need to establish your own operating system. That is, when you want to enter a stock, you need to know where the reason for entry is. If the reason is still there after entering, continue to hold it. Once the reason is gone, come out decisively.

5. Never rely on rumors to trade stocks! Many retail investors believe in this, which is a big mistake! The stock market is very rigorous, and information leaks can have very serious consequences. If you are just a retail investor, the only possible way for the news to reach your ears is that the main force has spread the trap. There are also many cases of being trapped in this situation!

Only after experiencing the cold to the bone can you get the fragrance of plum blossoms. Without tasting the vinegar and ink of the world, how can you know the sour and sweet of the world? All those who have a great understanding have experienced being hopeless, breaking and establishing, bathing in the new life, the phoenix nirvana, and living towards death. If you are at the end of the road, then you will be as powerful as a bamboo shoot!