Let me first share a short story with everyone:

Once upon a time, there was a merchant who went out for business. He had not returned home to visit his wife for three years. After several years of hard work, he saved a small amount of money. Seeing the New Year approaching, he was filled with longing for his hometown, so he decided to rush back home to reunite with his wife.

The merchant thought to himself: "I haven't been home for more than three years, and my wife must miss me very much. I should prepare a special gift for her to comfort her for her hard work in managing the household."

The merchant strolled down the street, browsing the various stalls on both sides. The vendors were all shouting loudly to attract customers. Suddenly, the merchant was deeply attracted by a store. It was a large store, but it was empty inside, with no goods at all. The owner was sitting in the store, murmuring and singing, as if he was singing something. He saw a striking cloth banner on the wall with the four big characters "Selling Four Verses of Wisdom" written in strong and vigorous strokes.

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The merchant was extremely curious. He thought to himself that he had traveled all over the world and seen many products, but he had never heard of "Four Verses of Wisdom." He decided to find out, perhaps he could give his wife a surprise. So he said to the store owner: "Excuse me, how much is this Four Verses of Wisdom?"

"If you are interested in buying, I will tell you about this rare and wonderful treasure in the world. If you are just inquiring, I'm sorry, I won't answer," the store owner said lazily, lifting his eyelids.

"I am sincerely interested in buying this Four Verses of Wisdom. Please tell me!"

The store owner quickly put on a smile: "The Four Verses of Wisdom are four sentences: Take three steps forward and think, take three steps back and think, when anger arises, think carefully, and let go of anger is the most auspicious. Seeing that you look honest and kind, I will give you a special discount, thirty taels of silver."

The merchant was both amused and annoyed. It turned out that this was the treasure of the Four Verses of Wisdom. Since he had promised, he had no choice but to buy these four sentences at a high price, and he was extremely annoyed in his heart.After a long and arduous journey over mountains and rivers, and traveling day and night, the merchant arrived home on the eve of the New Year. It was already late at night, and all he could see through the window lattice was a soft, yellow light, which must have been his wife waiting for his return. The merchant was very happy, and as he stepped over the threshold, he saw a table full of delicious dishes in the hall, with four sets of chopsticks and bowls neatly arranged on each side. It seemed that his wise wife knew he had traveled hard and was hungry. But where was his wife? It turned out that she had already gone to bed. As he entered the bedroom to wake her up, he suddenly noticed two pairs of shoes neatly placed at the front of the curtain, one pair of men's shoes and one pair of women's shoes. The merchant was furious: "Goodness me! How shameless! She has done such an immoral thing, tarnishing my family's reputation."

The merchant turned around and rushed to the kitchen, picked up a sharp knife, and was about to strike when four lines of a verse suddenly came to his mind: "Take three steps forward and think, take three steps back and think, when anger arises, think carefully, and letting go of anger is the most auspicious." He thought again, even if he had to kill her, he should ask her clearly, let her die a clear and convincing death. So he woke up his wife rudely and shouted: "You shameless woman, you actually cheated on me behind my back. How do you explain this banquet and this pair of shoes?"

The wife, who was in a deep sleep, saw her husband who had been away for a long time and was not only not caring and comforting, but also wanted to kill her like a fierce demon. She couldn't help crying: "You ungrateful man, you have been away for three years and did not send a message home. I thought the New Year was approaching, and other families were reunited, so I also prepared a set of chopsticks and a pair of shoes for you, for good luck and completeness. You don't ask the reason, you want to kill and cut when you see me. If that's the case, then you can kill me."

"I'm sorry, I misunderstood my virtuous wife, ha ha! It's really cheap to buy four lines of verses for thirty taels! Cheap! Cheap!" The merchant danced with joy, clapping and laughing, while his wife looked puzzled.

Calmness is wealth. Impulsiveness is the devil. Sometimes, people tend to lack rationality and act recklessly when encountering emergencies, which often leads to regret and even makes a big mistake, regretting for a lifetime. Therefore, before encountering things, think calmly for 3 minutes first, and then decide what to do after the mood has improved, which may result in a completely different result from the original radical behavior.

It is not enough to only know how to buy and sell points, the training of mentality is what retail investors lack the most. What retail investors lack is the essence of a killer, not being ruthless enough, not daring to buy when they should, hesitating when they should sell, and not persisting when they should hold.

Knowing how to wait is the secret to success in the stock market. "Think about losing before winning" is the high intelligence left by our ancestors. When you can understand it, enter the market; when you can't understand it, watch and wait, and waiting is also a strategy.

To trade stocks well, you must have a good mentality, and have the correct attitude of not being happy when you make a profit and not worrying when you lose. Whether you make a profit or lose, you should summarize the experience and lessons in time and remember the gains and losses in the operation process.Here is the English translation of the provided text:

Summary of the five types of stocks that should never be touched in short-term trading:

1. Try not to buy individual stocks after high-position resumption

High-position suspension means that when the suspension occurs, the market index is relatively high. After resuming, except for a few high-quality individual stock cases, such as Storm Technology and LeEco, most have no chance to come out.

For example, Huaxin International (002018), as soon as it resumed in April, it directly had N consecutive daily limit-downs.

Why do people still rush in to gamble on such stocks? Many are deceived by the huge volume, so remember, if a resumed stock has a huge volume, it does not indicate an opportunity to buy, but an opportunity to escape. The reason is very simple, that volume column is formed by the main force's escape. Even the main force has run away, do you think there is still a chance?

So, in this situation, it is recommended that everyone should take profits and stop most positions, and the rest should wait and see if there is a possibility of breaking through and going up.

2. Downward channel - sliding down - resolutely do not buy

(Note: The original text seems to be cut off, so the translation ends here as well.)In a downward channel, do not attempt to bottom-fish, as there is no lowest point, only lower ones. Countless investors have fallen into the trap of bottom-fishing, and even Warren Buffett cannot escape it.

3. Firmly avoid buying stocks that have experienced a sharp surge.

The rise of a stock is driven by capital. When a stock has increased by 300% or more, the original main force, once it withdraws, will not be replaced quickly. It takes time to accumulate chips. A stock, if only retail investors are playing around, cannot make a big impact, so the price is difficult to rise in the short term.

In addition, if the stock trend is like a chopstick, shooting straight up in the short term, it indicates that the market manipulator has already changed the chips and left, making the final lift to lure more people in. At this point, if you enter again, you will be trapped.

Even if such stocks occasionally rebound, they are difficult to operate because most of them continue to decline after a few days of rebound. So, if you encounter them, it's better to stay away as soon as possible.4. Market Termination - Cliff Rock —— Resolutely Do Not Buy

The appearance of a high cliff rock is formed by the consensus of many main forces to look bearish and collectively flee, marking the watershed of the market. There is no need to look at this stock in the short term. If you are trapped, it is better to sell early.

5. Stocks with good news realized are best avoided

There is a common saying in the stock market: good news realized becomes bad news, and when bad news is exhausted, it becomes good news. Stock speculation is often about expectations. Once the expectations are realized, it may be the time to withdraw from the market. Sometimes, the main forces may even retreat in advance.

For example, China National Petroleum Corporation (CNPC) began to trap people when everyone said it was good. This year, the Disney concept was also hotly speculated at the beginning, but the day the tickets started to be sold, the market corrected. There are really too many such examples.

Several types of 60-minute K-lines that should not be bought:Here are the translations for the given sentences:

1. Do not buy when the 60-minute K-line shows an inverted V-shaped reversal.

2. Do not buy when a hanging man pattern appears at high levels on the 60-minute K-line.

3. Do not buy when an upper shadow line appears at high levels on the 60-minute K-line.

4. Do not buy when the "bearish cannon" pattern appears on the 60-minute K-line.

5. Do not buy when a "cross" pattern appears at the top of the 60-minute K-line.

Please note that some of the terms used in the original sentences are specific to technical analysis in stock trading and may not have direct English equivalents. The translations provided are based on the general understanding of these terms in the context of stock trading.6. Never buy when the 60-minute K-line shows a "guillotine cut."

7. Never buy when the 60-minute top shows a long bearish candlestick without a lower shadow.

8. Never buy when the 60-minute evening doji star appears.

Therefore, in daily operations, if you notice that a stock does not rise significantly despite good news, you should be cautious and consider selling part of your position first; on the contrary, if there is bad news and the stock does not fall but rises instead, it may be an opportunity. Good news that everyone knows may not be good news, and bad news that everyone knows may not be bad news.

Remember these stock trading mantras:

Bottom-fishing: Reduce positions when there is an increase in volume with a decline, and a new low with reduced volume indicates a potential bottom. The key is the increase in volume during the rebound, and you should enter the market after a confirmation of the reversal.Translate the following passage into English:

When a stock experiences a significant drop, it's essential to consider its position in the trend. A subsequent volume increase following a series of declines could indicate a bottom.

Bottoming out: A shrinking volume suggests a potential extreme, with the extreme point often marked by a new low. When sentiment is low, it's easier to clean up the market, and catching the extreme point can bring good fortune.

Escaping the peak: New volume and new prices reaching new highs are common; a volume contraction with a pullback does not necessarily mean it's time to escape. However, a sudden surge in volume requires vigilance, and if the price is there but the volume is not, it's time to run.

(A volume contraction pullback that finds support at a previous high is usually a signal of a peak)

Selling: Selling requires good sentiment; after good news comes expectations, and selling when the market is hot is the premise. A market that rises in volume but not in price is nearing its end.

(Continuously pushing the price up followed by good news is often a sign of the main force selling out, especially if the good news is predictable)

Stop loss: You expect the stock price to rise, but it goes in the opposite direction. Recognize the situation and discern the intention; if it's not a stop loss, then it's time to add to your position.

(Stop loss must be based on your position; with a heavy position, act quickly and don't expect a significant drop to the support level to trigger a rebound)

Washing: A huge volume at a new high raises suspicions, and a volume-accompanied drop in price erodes confidence. An attack with shrinking volume without followers, followed by a new high, cleans up the market.

Short selling: Short selling requires bad news; when the overall market is down, it's easier to clean up. Continuously setting new lows, and if there's no volume, it's the extreme of the bearish trend.Do not assume that bad news equates to a washout; it is best to avoid stocks with bad news and not to blindly try to bottom-fish.

Washout: To lift the market, it is necessary to wash the board, with the purpose of clearing out floating chips. Suppression and shaking the warehouse occur when volume is shrinking; rapid pull-ups and washouts should be observed through volume ratios.

Trend: Entering and exiting the market depends on the trend; when volume and price are intangible, one must know when to stop. While everyone else is chasing, I alone remain sober, preparing to pick up when the popularity is low.

(A good trend is characterized by a well-arranged moving average, with the medium-term moving average pointing upwards and supported by the fundamentals)

Speculation: Short-term speculation is fraught with danger, with the yellow warbler behind the cicada. Do not complain about losing more and earning less, for it is only because the perspective is too superficial.

(For short-term operations, it is important to take profits when the opportunity arises, to cut losses when necessary, not to fantasize about buying wrong, and not to be annoyed about selling too early)

Rhythm: The rise and fall of stocks are like waves; do not enter at the peak of a wave. As one tide recedes, another rises, and grasping the rhythm leads to profits.

(A pattern break after a continuous rise often indicates a correction)

Mentality: Stock trading is a game of mentality, where greed and fear are the great enemies. Be cautious about chasing rises and selling on dips, and maintain a calm and peaceful state of mind.

Remember these six stock trading experiences, seeing them is like earning:1. Invest in strong stocks when trading. If you don't know how to judge the strength of a stock, use the 60-day moving average as the dividing line between strong and weak. When the stock price stands above the 60-day moving average and stabilizes, you can enter or add to your position. Exit if the price falls below the 60-day moving average. Strictly following this rule is applicable to most stocks. Avoid stocks that have increased by more than 50% in a row, as you may not be able to hold onto them when they rise a little, and you may end up worrying. Compared to others, stocks at lower positions have greater advantages and higher cost-effectiveness. First, the risk can be controlled, the upward momentum is greater, and the chances of winning are even higher.

2. If a stock has hit the daily limit within 15 days and the volume decreases without breaking through the 10-day moving average, it is likely to catch up in price. This is because the main force will adjust the stock price after hitting the limit to prepare for the future rise. Hitting the limit indicates that the main force has started to act, and the decrease in volume indicates that the main force has not left. The 10-day moving average plays a supporting role and is the starting point of a new round of market. Before the main wave is formed, there will be obvious characteristics, usually a small fluctuation of -3% to 8% in the price with low volume. Set the average volume line to 135, and if the volume does not reach the average volume line, it indicates that the main force's chips are quite concentrated. When the stock price is at a low level, you can actively participate, and there will be a high probability of a round of market.

3. When a new concept plate opportunity emerges in the market, there will be a high probability of a 2-3 day rise in space. Grasping this rule can easily follow the main force's express train! When the bear market comes, at least be empty for more than half a year. When the market is not good, operate less. Knowing how to buy is an apprentice, knowing how to sell is a master, and knowing how to rest when the market is empty is the ancestor. Persist in reviewing the market every week. Reviewing is not to see whether you have made a profit or loss, but to see if the method is correct. If it is correct, continue to follow this method. If it is wrong, find the reason and correct it as soon as possible. After persisting for a few months, you can form your own operating model!

4. Moving averages are the most effective way to distinguish the strength of stock prices. If the K-line breaks through all the K-lines, the stock price must be weak, and if the K-line always rises along the moving average, the stock price must be strong. Once the moving average appears the golden eye, the subsequent rise in stock price will be very large. The golden eye is composed of three moving averages, the 5, 10, and 20-day moving averages are arranged in ascending order, forming a bullish arrangement. The market can enter on the rebound, and the entry point is generally at the position of the 20-day moving average. If there is support, you can start.

5. For retail investors, the appropriate investment strategy is the most critical. The difference between retail investors and the main force lies in the capital. Even if the main force makes a mistake, it can save itself with a large amount of capital, but retail investors are different. So when operating, first formulate an appropriate strategy, such as replenishing the warehouse. If you want to replenish the warehouse for this ticket later, you should plan how many chips to take according to the capital amount in the early stage. Because the capital is small, the number of times to replenish the warehouse will not be too many. Each time of replenishing the warehouse is an opportunity, and the number of times to replenish the warehouse is the number of opportunities.

6. Stock trading is against human nature. Human nature produces emotions, emotions affect judgment, and thus lead to your decision-making mistakes. Think about it yourself, every time you are angry, whether there are many words that come out of your mouth, and these words are often not the words that should be said. Therefore, we need to keep sober and calm when trading stocks. Trading volume is the only true indicator of the market. A market with little capital participation will not rise naturally, and the rise of stock prices must be driven by capital. As long as a large amount of capital is used to complete the transaction, the trading volume will increase. A reversal of a ticket, the trading volume must change, from weak to strong, the trading volume naturally increases from small to large. If there is no volume increase, the reversal is false. We need to have a keen observation of the market, always pay attention to the direction of the market, and be bold when opportunities come, and run quickly when risks come. Sometimes the market turns in an instant, and making a quick response is what a qualified stockholder should do.

No matter how strong you are, there will always be someone stronger than you; no matter how excellent you are, there will always be someone better than you. Only by continuously learning can you continuously improve yourself and become a wise person. So don't easily refuse to learn new knowledge, because what you refuse is not others, but your own growth. People who do transactions must have a heart as strong as a rock! I want to say that if someone is constantly hit by failure day and night, and then constantly gets up again, will such a person's heart still be fragile? But this does not mean that people who do transactions have no love, it's just that everything becomes calm and sees through the world. They all look like they are not competing, but in fact, they are fighting for every penny in the market. They are very wealthy, but they dress and live in ordinary ways. When they appear in slippers, the impression they leave to the world may just be some old guys or otaku.