The winner is the one who thinks half a step further.

The Jewish people have a custom: when a child is young, the mother will open the "Bible", drip honey on it, and let the child lick it.

Jewish children are almost always asked the same question by their mother: "If one day, your house suddenly catches fire, what would you take to escape?" If the child answers money or diamonds, then the mother will further ask: "There is an invisible, colorless and odorless treasure, do you know what it is?" If the child can't answer, the mother will say: "Child, what you should take is not something else, but this treasure, this treasure is wisdom. Wisdom is something that no one can take away. As long as you are alive, wisdom will always follow you."

The business law of the Jewish people is actually very simple, that is: "Even if you are poor, you should stand in the circle of the rich."

The poor admire the results of the rich accumulating wealth, but they ignore the wisdom of the rich in making money.

Everyone has a living environment, and the environment and fate are mostly interrelated. Most of the poor live among the poor, and over time, their mentality becomes the mentality of the poor, their thinking becomes the thinking of the poor, and the things they do are also the patterns of the poor.

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A poor person living among the poor, if they want to become rich, often have to say goodbye to their own class. This is not a betrayal, but a kind of self-improvement.

The transition from poor to rich is what most people yearn for, but without the idea and means of getting rich, being wealthy can only be a comforting illusion.

Only by standing in the circle of the rich and absorbing their ideas of getting rich, and keeping up with their successful state, can the poor truly achieve the goal of getting rich.When the main force is operating, in order to quickly achieve the operational purpose, they often adopt some more extreme operating methods, such as sudden limit-up, limit-down, sudden increase in volume, or sudden large opening, and other techniques, which make investors unable to understand their operational intentions, thereby achieving the purpose of concealing the truth and confusing right and wrong. So, how should ordinary investors deal with such market-making techniques?

What does "volume contraction and rising" mean:

This can be said for individual stocks and the overall market index. Volume contraction and falling refers to the situation where the trading volume during the decline is significantly reduced compared to the previous stage. Conversely, volume contraction and rising refers to the situation where the corresponding trading volume is very low when the price rises. Volume contraction and falling is generally understood as the market's reluctance to sell, and in price-volume analysis, it also belongs to the expectation of price-volume divergence and a reversal in the future market. Conversely, the same can be inferred.

What does "volume contraction and rising" mean:

Rising without volume, first, indicates that the stockholders' confidence in the stock is strong, and they are reluctant to sell. Another situation is that the buying side is not active, and the energy cannot keep up.

Volume contraction indicates that the market does not have a big divergence in the view of the stock, and the view is relatively consistent. Volume contraction usually occurs at the initial stage of the stock's rise, indicating that the main force has a high control over the stock, the chips are locked, and the stability is good, with few floating chips. Especially for the stocks that are limit-up without volume, it also indicates that the stockholders generally look forward to the future trend of the stock, and there are very few people willing to sell, resulting in a very low trading volume, even less than the minimum volume. If it rises to a certain height and there is a rise without volume, it indicates that the willingness of the subsequent funds to follow is not strong, and the selling pressure is also not strong, everyone is watching, if there is a large volume of rising at this high position, it should be alerted to prevent a rebound.

If there is a rise without volume at the bottom, people who do technical analysis generally will not buy in, indicating that there are not many people who are optimistic, and there are not many people who are pessimistic and selling stocks. In the middle of the rise, they will generally continue to hold the stock. It also indicates that the divergence between the optimistic and pessimistic views is not large. You can continue to hold. At the top of the rise, it indicates that the driving force of doing more has been consumed and is no longer strong. You can consider selling the stock.

What does "volume contraction and falling" mean:

Volume contraction and falling is that the trading volume has shrunk significantly compared to the previous period, and the stock price has fallen. Volume contraction and falling simply means that a stock is falling, but the trading volume is very small (generally, a turnover rate of less than 1% is called volume contraction). This is caused by the short side's strength far greater than the long side's strength, and many sell orders cannot be traded.What does volume contraction and price decline mean?

A price decline with no volume can occur in two situations: one is at the beginning of the decline, where there are few buyers; the other is at the end of the decline, where holders are reluctant to sell, leading to a reduction in selling pressure, which indicates an upcoming rebound.

A price decline with no volume suggests that the main forces in the early stage have no intention or are unable to exit the market. They can only compromise and endure hardships together with ordinary investors for the time being. Once the market stabilizes, the price of such stocks is far from the concentrated trading area where they were trapped. The pressure to break even during the rebound process is light. If there is no volume during the decline, there will also be no volume during the rebound, and the strength of the rebound will naturally increase. The market's following of such stocks is also the most enthusiastic.

When a stock's price falls, many investors will experience normal panic, but not everyone will sell. Only a few people sell stocks at the beginning of a rapid price drop, and most people will mainly watch when the stock falls or after it falls. This is because stock price declines are often sudden, and more often, investors always feel that the current price is far from their psychological expected price. Therefore, investors generally will not sell their holdings easily in a downtrend. Of course, investors are even less willing to buy when the stock price falls, so a state of extremely inactive trading when the stock price falls may occur.

The extremely inactive trading volume when the stock price falls indicates that no one is selling or buying at the same time, which is usually referred to as the stock price falling in a vacuum. There are two possibilities for this phenomenon:

First, the stock's chips were always concentrated during the previous rise, which means that the stock did not achieve the goal of selling high during the rise. When the stock price falls, due to the fundamental unchanged position of market investors, even if the stock price falls, there are very few sellers.

Second, the previous rise in the stock price was not significant, and after the stock price was adjusted and consolidated, the original upward trend became blurred. At this time, the market's wait-and-see sentiment became the dominant factor. Moreover, because the profit-taking and trapped positions are not obvious, investors are not eager to sell, and the upward trend is not clear, and buyers are also not willing to intervene easily, thus forming a pattern of volume contraction and price decline. The stock price increase is relatively limited, the original holders are unwilling to sell, and the trend is too weak, and other investors are unwilling to buy, forming a trend of falling in a vacuum with no volume.

When the stock price shows this trend of falling in a vacuum with no volume, the opportunity for profit may also come. During the process of the stock price falling, there is no increase in volume, indicating that most of the chips are locked at a high level. After the fall, the resistance to the stock price rebound is bound to be very small. Short-term funds grabbing the rebound or funds trapped in the market are very likely to take this position to make a wave of the market, and the possibility of the rebound and the height of the rebound are directly proportional to the amplitude of the fall. After the trend of falling in a vacuum with no volume appears, there will be a rebound market, either large or small, but the space for the rebound may be limited, and investors need to act according to their ability.

Buy point grasp:

(Note: The last sentence seems to be incomplete, and the translation is provided as per the given text.)I. Sudden Surge in Volume at the Bottom

After a prolonged period of decline, some individual stocks may suddenly form a large bullish candlestick with a significant increase in volume within the downward channel. This large bullish candlestick completely covers the previous one or several candlestick bodies, and the trading volume is noticeably much higher than the previous day, sometimes even several times larger. This phenomenon is referred to as a "sudden surge in volume." It indicates that the bottom is accumulating upward momentum, with major players building positions in the early stage. Some aggressive investors can consider building positions at this time, as when the supply and demand relationship of a stock undergoes a significant change, it will determine the direction of the stock price. Investors must pay attention to the relationship between the stock price and volume when such changes occur. Once the price and volume are in coordination, after buying, the stock price will inevitably rise as expected.

As shown in Figure 1-1, Da Yilong exhibited a sudden surge in volume after a period of prolonged decline. The day before the surge in volume, the stock price showed a pattern of a volume contraction limit-up, which opened at the limit-up price and was sealed with very little trading volume. After the limit-up, there were very few sell orders, indicating that investors' confidence in holding the stock near the limit-up price was very strong, and it also indicated that the market manipulator's control over the stock was quite high. The large bullish candlestick formed with an increase in volume shows that external funds are continuously flowing in, and the bullish sentiment is constantly stimulated. Subsequently, the stock price experienced a rebound.

In practice, the day of the surge in volume is not a clear buying point. For conservative investors, it is important to observe the subsequent trend. If the trend of increasing volume and rising prices can be sustained, it indicates a real rebound. However, if the trading volume quickly contracts after the surge, the stock price may continue to consolidate or decline for a period.

II. Volume Contraction Doji During the Uptrend

A doji that appears during an uptrend usually indicates that there is pressure from above that has not been broken through, leading to a pullback, but there is also strong support from below, causing the stock price to return to the opening price at the close. If the trading volume is significantly lower than the previous two days, it usually indicates that the market manipulator has not withdrawn and can continue to hold, with further room for upward movement in the future. Short-term operations can be based on the next day's trend, entering at lower levels.

The occurrence of such a doji during an uptrend is likely a test of the market by the major players. If the stock price stops and there are few sell orders in the market, it indicates that most holders are optimistic about the future trend of the stock. In this case, the major players will continue to push up the stock price. However, if there are many proactive sell orders during this process, it indicates that the confidence of the holders is not very stable. In this case, the major players will often continue to let the stock price consolidate horizontally or even suppress it downward to clean up the unstable chips in the market, achieving the effect of locking the chips.

As shown in Figure 2-1, the stock price of Changzheng Electric has been steadily running upward along the 5-day line from the bottom, and the trading volume has also shown a moderate increase, with a good match between volume and price. However, due to the continuous rise over several days, there will be a lot of unstable profit-taking chips in the market. In order to clean up these floating chips, the major players used a small platform consolidation method to wash the market during the lifting process, and the trading volume was significantly reduced. After this process, the lifting trend continued.Volume contraction and price increase are usually signs of high control by the main force of the market.

When a stock enters a rising state and shows a pattern of volume contraction and price increase, many investors do not recognize this trend, thinking it is a sign of weak rise, because there is a lack of continuous capital entering the market. In fact, this view is one-sided. Although the volume contraction and price increase indicate that there is less incremental entry, it also indicates that there are not many sell orders. The volume is reduced, but the rise can still be maintained, indicating that the main force does not need much capital to lift the stock price. In essence, there are fewer floating chips, that is, the stock has been highly controlled, and the market is likely to have a strong performance in the future, which is our preferred target.

Case one of volume contraction and price increase:

As shown in the above figure, this stock is very unique in this trend in December 2012 and is worth studying. On December 11, 2012, the stock rose and fell, and the day closed with a medium positive line with a long upper shadow line, and the volume was greatly increased. This trend is very common. When approaching the previous high, a large number of trapped chips are out, resulting in an increase in volume. However, the subsequent trend of the stock is rare. According to the convention, there will be a callback after the rise and fall, but we see that the stock has continued to rise, a uniform small positive line, and what is more surprising is that the volume has obviously shrunk. This kind of volume and price trend is generally considered to be a sign of weakness in the bulls, but in fact, it is not. Because the stock has broken through the major pressure of the previous high, there is not much pressure from the trapped chips in front, and now it starts to rise with a reduced volume, indicating that the chips are very stable and the sell orders are very few. Therefore, it can maintain a long-term rise with reduced volume, which is a manifestation of the high control of the stock, and it has great potential for rise. Stocks with this trend should be firmly grasped and should not be easily out of the market. The subsequent trend of the stock also verified this point.

Case two of volume contraction and price increase:

As shown in the figure, this stock is not a big red and purple stock, but the trend is also very strong. Although it is not very prominent, it is strong because it can lift with a reduced volume. On January 8, 2013, the stock broke through the previous high pressure with a medium positive line, and the rise space was opened. The volume on that day was greatly increased, and there was a clear upper shadow line, indicating that there is still a certain selling pressure, which also implies that the market may be shaken in the future. As expected, the market was shaken in the next three days, but the range was small, and without exception, it was a small positive line. What does this mean, is it a sign of weak rise? We cannot think so. The key pressure position has been broken through, and the rest is how the main force will lift it. The three-day small positive line shake has the effect of washing the chips, but it is obviously ineffective. The center of the stock price has moved up, and the volume has obviously shrunk, indicating that the chips are stable. At this time, we should be patient and hold the stock, and not easily change the stock. After that, the stock was indeed accelerated to lift, and the volume increased, but it did not break through the volume of that day, indicating that the lift is still relatively easy. We can wait for a larger increase without worrying about being out of the market.

The difference between volume increase and price increase and volume contraction and price increase lies in the fact that the former is that the stock price increases while the volume also increases continuously; the latter is that the stock price rises but the volume decreases continuously. Both are a phenomenon of volume and price coordination when the stock price of an individual stock rises. Investors can judge the market and the further trend of the stock price based on this.

When an individual stock is at a low position, a volume increase and price increase prove that there are a large number of investors entering the market to buy when the stock price rises, and the trend of the stock is optimistic; a volume contraction and price increase may also be a sign of a strong atmosphere of investors watching, and the sustainability of the rise is worth looking forward to. And if it is at a high position, there is also the risk of a bear market.Selling Points Grasping:

I. High Position Volume Gap

When the stock price reaches a high market position, it suddenly closes with a long dark line that opens high and goes low with a large volume. The next day, the stock price opens down and finally closes with a dark line. This trend is called "high position volume gap." For this trend, it is not necessary to have a large volume when the second dark line appears.

This trend indicates that the dealer's delivery is basically coming to an end. When the dealer has delivered almost all the chips, the dealer will not care too much. As long as someone buys, the dealer will sell, causing the stock price to drop sharply with a large volume, and finally closing with a long dark line. On the second day of closing the large dark line, the stock price will also open down and close with a dark line. Investors should be particularly cautious when they see this trend. Although it is not excluded that the stock price will have a rebound and rise, the decline has become the main theme of the later trend, especially after the stock price has risen sharply, and the stock price suddenly goes out of an accelerated rise in the high position area, and appears a continuous dark line with a large volume during the accelerated rise process, investors must be highly alert.

As shown in Figure 3-1, Yueyang Xingchang, you can see from the figure that the stock has this trend when the stock price reaches the high market area, and then the stock price quickly entered a downtrend.

In practice, after the stock price has risen sharply, especially after the high position area accelerates the rise, this trend appears, and the cautious investors should decisively sell when the first large dark line is formed, and there is no need to wait for this pattern to be completely formed before leaving. If the stock price opens down the next day, it should be sold immediately at the opening.

II. High Position Volume Reduction Rise

Some stocks will appear a short-term consolidation when they run to the high market area. After the consolidation, the stock price continues to rise, but the trading volume has a rapid reduction, so it is called "high position rise volume reduction." When a stock appears this trend, it indicates that the rise of the stock price is about to come to an end, and the decline will soon come.

After a wave of sharp rise in the stock price, the buying will gradually weaken. At this time, whether it is the investors in the market or outside the market, the first thing to consider is the risk problem, so the enthusiasm for entering the market is far less than before. The dealer will not actively take the chips to raise the stock price, but will continue to sell out of the hidden. Under the influence of these factors, the trading volume is difficult to appear to increase. Without the support of trading volume, the stock price is also difficult to continue to expand the space upward.As shown in Figure 4-1, the stock of COFCO Tunhe exhibited a rapid volume contraction when the stock price rose to a high area. However, this stock experienced a rapid volume contraction during the process of the stock price increase, which is commonly referred to as "volumeless empty rise." After a short period of rising, the stock price immediately turned downward, eventually triggering a rapid decline in the market.

In the actual operation process, when the stock price continues to rise in the high area, if a rapid volume contraction occurs, once the stock price rises weakly, shareholders should immediately sell, and those holding cash should better not participate in the operation, especially when a volume contraction and horizontal consolidation pattern appears. Once the stock price consolidates with volume contraction or rises and then turns downward, investors should immediately sell. Do not have any illusions about the future market.

Some individual stocks may experience a fake breakthrough after a volume contraction and consolidation. If a large volume long upper shadow line is pulled out, and the next day the stock price weakens and breaks through this consolidation platform, investors should resolutely sell and not have any illusions about the future market.

Finally, if the situation is very good, you need to make a big move to get the maximum benefit. Taking advantage of the situation to increase positions is the principle. Even if the situation is not good, making a big move can win, but the effect is limited. So, what are the rules for increasing positions? Generally speaking, I recommend the following two methods of increasing positions:

1. Pyramid Position Increase

The pyramid position increase method is very simple. It is to increase the position in the process of rising, and each time the position is smaller than the previous one, forming a pyramid shape of "large bottom position, the higher the position, the smaller the position." For example, the initial position is to buy 10 hands, and when the stock price rises to a suitable position to increase the position, add 5 hands, and then encounter a suitable position to increase the position again and add 3 hands. In this way, as the stock price rises, the number of positions added becomes smaller and smaller.

This method of increasing positions is safer and can avoid the damage of price pullback to the existing floating profit. In the process of short-term operation, I also like to use this method to increase positions.

2. Parallel Position Increase

Parallel position increase, also known as barrel position increase, is to keep the amount of each position increase the same, forming a parallel position increase shape from the bottom to the top. For example, the initial position is 5 hands, and when the stock price rises to a suitable position to increase the position, add 5 hands, and then encounter a suitable position to increase the position again and add 5 hands, so that each time the position is increased, the number of hands remains unchanged. This kind of position increase is actually a pyramid shape later. This is my commonly used method of increasing positions.

These two common methods of increasing positions can be flexibly used. No matter which method of increasing positions, in the process of increasing positions, you must go with the trend, try to make breakthrough position increases, you can make a small amount of support position increases, and absolutely do not make position increases to flatten the cost downward. Flattening the cost downward is actually against the trend, and the cost cannot be flattened, but it is likely to lose money. At this time, the price is going down, seeing that a sheep in front has already entered the tiger's mouth, and you still want to send in a few more sheep, it is too irrational.