What is stable profit? How to understand market trends? The core trading logic of four major whale leaders! Basic trading literacy!

What is stable profitability? How to understand market trends? Core trading logic of four top capital players! Basic trading literacy!

I. Stock Trading Essentials

1. The essence of making money in the stock market:

1. Find a suitable trading model

2. Persist + execute diligently every day

3. Take action when opportunities arise on the chart; otherwise, stay in cash and reverse repurchase.

2. The ultimate secret to stable profitability: continuously wait, replicate your own model (the few buy points you understand and that yield consistent gains), deeply understand that “being in cash is an essential part of short-term trading,” and during market downturns or phases where you cannot understand the market, you can choose not to trade.

3. Characteristics of experts: They possess probabilistic thinking—bet small to win big—and unwavering execution;

Loss-makers lack probabilistic thinking, they only think about making money after buying, without considering how to handle losses, often not setting stop-losses or moving stop-losses, letting losses run; only setting a stop-loss can limit losses and let profits run; loss-makers lack execution ability, even with good exit rules, they don’t follow through, often influenced by psychological fears and intraday volatility, holding onto false hopes.

II. Market Laws

1. Market evolution:

Mid-term cycle: Always born out of despair, develop amid doubt, and end in celebration;

Short-term cycle: Small loops around divergence—recovery—strengthening/weakening—entering upward/downward cycles.

2. Core of ultra-short-term: Based on human nature’s “profit effect + loss effect” cycle evolution, reflected in market behavior through thematic cycles, sentiment cycles, and ecological cycles.

3. Cycle thinking: Everything has patterns and nodes—that is, cycles. Cycle thinking manifests in trading with rhythm; it’s not about maintaining the same position + daily operations throughout the entire cycle. Violating cycle laws results in no gains!

Cycle mindset: Greedy at the bottom of the cycle, fearful at the top!

Position cycle:

1. Initial phase: half position—veterans trade aggressively;

2. Main rise phase: heavy position—veterans hold their positions for a feast;

3. Polarization phase: half position—veterans reduce holdings and realize profits;

4. Full recession: light or no position—veterans control positions and hunt;

5. Ice point: position control—veterans seek new targets.

Timing for profit-taking: Points for pushing positions to take profits: Ice point, absolute ice point, chaos period, initiation period, main rise period, divergence day during main rise, divergence turns to consensus, acceleration period, climax day. Once entering these phases, positions should lean toward core stocks, exploiting the upside potential for arbitrage.

The day after the climax, polarization, and decline cycle are considered garbage periods; the earlier you take profits or cut losses, the better.

III. Core Trading Logic of Top Players

1. Brother Zhao’s core logic: Market driven by funds, thematic stocks are king!

Leading stock strategy principle: New themes > old hot spots; the cohesion of funds determines the leading position;

“Two-board confirmation” for leaders: Volume explosion confirms market consensus, requiring three elements: theme + funds + popularity.

2. Stock trading for family livelihood: Emotional cycle and fund management rules!

Trading system core: Follow market sentiment, adjust strategies dynamically!

Emotion phase theory:

Strong market: Chase leading stocks (continuous fund inflow);

Weak market: Buy oversold stocks at low points (panic selling completed).

3. Assassin’s Path: Survival rules of top capital players, the transformation code from loss to wealth.

Stock selection logic: Only focus on mainstream themes, reject marginal targets; “Weak to strong sentiment”—key nodes during theme fermentation.

4. God A: The rebirth of a fallen king, from bankruptcy to billion-dollar revelations.

Trading philosophy: Evolving mainstream themes > technical analysis: fund flow determines success or failure; “Sentiment cycle”: fundamental law of bull-bear transitions.

IV. Trading Fundamentals

1. Planning trades, trading plans: When trading, follow your plan and model daily. If you miss the predetermined entry point, do not chase; wait patiently for the next target. Simple and effective—once experienced, it feels very satisfying and relaxed.

2. Anti-fragile thinking: Survive under pressure and become stronger; leading stocks and hot stocks in the market, during high risk periods, do not fall but instead soar; truly leading stocks are tested by the market and will demonstrate their anti-fragility.

1. Chart-wise anti-fragile: Rebound after a gap-up, weak to strong the next day, intraday weak to strong;

2. Macro perspective: During market ice points, the market initially thought it would die but it did not;

3. Stock position anti-fragile: Originally a second-tier leader, the next day it becomes a first-tier leader; originally a secondary high, it surpasses the highest pre-market, causing the highest divergence to break.

V. Trading Literacy

1. Control: The essence of short-term trading! Accounts with large swings have control issues or problems; many top traders also experience periods of reduced control leading to big losses. Control is reflected in decreasing ineffective trades; the difficulty in ultra-short-term trading is not technical but mental control.

2. Execution: The hardest part of trading is improving execution and control; the path of cultivating the mind and refining the soul requires day-by-day relentless effort. There is a bridge between a trading system and stable profits: that is, execution.

3. Greed for more: Claiming to only trade within your model, yet before signals appear, unable to resist boredom and unable to control the urge, engaging in various arbitrage trades, thinking that holding cash is also holding, earning small profits to satisfy the desire to trade. Unknowingly, Pandora’s box of trading is opened through casual operations, unleashing all the suppressed bad habits, breaking rules, losing persistence, losing patience. Slowly, this trading system and model are ruined—an ant hole can cause a dam to break. **$CUDIS **$HOME **$ICNT **