Chapter 16 Investors' Mentality
Department of Financial Investment, Class 1.
In the afternoon, Qin Dangxian has class.
"Students, today we will talk about the mentality of investors and the comprehensive performance of the K-line."
"The mentality of investors will be reflected on the K-line, and the trend of the K-line will also affect the mentality of investors."
"That classmate can talk about the mentality of investors when operating futures or spot products, that is, stock index futures, gold, crude oil, silver, euros, US dollars, pounds and other products."
"Teacher, let me tell you, excitement, enthusiasm, doubt, and fear."
"Well, not bad, is there anything else?"
"Teacher, there is still calmness, worry, and despair"
“Hesitation, disappointment”
"Well, we basically talked about it."
Now let me tell you about the investment mentality.
In the process of rising or falling, investors' mentality has the following main psychological processes.
The first is calmness. For a certain financial product, such as gold, at this time the external information is normal and there are no major changes. The entire market is calm and the transactions of financial products are dull. The performance on the K line is that over time, various K
The K-line, such as 5 minutes, 10 minutes, half an hour, one hour, etc., gradually flattens, the K-line repairs, and begins to show signs of rising.
At this time, experts begin to gradually establish long orders.
The second stage is doubt. At this time, affected by some good news, investors begin to go long, and various types of
The K-line gradually rises, but due to the lack of confidence due to the early decline of financial products, the market hesitates, sometimes rising and sometimes falling. The performance of the K-line is the one-minute K-line, and the five-minute K-line sometimes rises and sometimes falls.
It turned down again, but at this time, the K-line could remain intact at fifteen minutes, half an hour, one hour, etc., and there would be no signs of breaking the position.
At this time, experts begin to gradually increase their positions.
The third stage is excitement. As time accumulates and various good information is released, most people begin to actively do long, and financial products begin to rise continuously. This is reflected in the K-line, which means that the five-minute K-line no longer fluctuates, and appears.
At 15 minutes, there were three consecutive positive lines on the half-hour K-line, and the moving averages spread upward.
At this time, the experts begin to sell high and buy low.
The fourth stage is fanaticism. At this time, when huge good news appears, gold begins to skyrocket, and the market begins to become frenzied. There is a phenomenon of rising immediately after buying. In one hour, four hours, etc., there will be more than three consecutive positive lines on the K-line, or a big positive line.
Include the small Yinxian.
Good news is flying all over the sky. Just like gold in 2021, due to the impact of the war on closing and the government’s investment funds due to the epidemic, it has risen to 2,200 US dollars. At this time, the financial product is obviously divorced from the fundamentals and has lost its original investment attributes. It is just an operational gamble.
It's just a tool, and the experts began to gradually clear their positions.
For example, oil once rose to 126 US dollars, and the Nasdaq index of 16,700 was the same. In just a few months, it fell completely. Now oil is more than 90 US dollars, and the current Nasdaq index is around 11,700. This is
The consequences of crazy rises away from fundamentals.
The fifth stage: calm. At this time, with the continuous rise, most long investors have made huge profits and choose to take profits and sell financial products. The performance on the K line is five minutes, 15 minutes, or even half a day.
The hourly K-line fell and then rose again. The market no longer rose blindly, and all parties began to become cautious.
At this time, the master begins to gradually establish short orders.
As shown on the K, line, there will be one hour, four hours, or even the daily line starting to go flat.
The sixth stage: Worry, with the continuous selling, the half-hour and one-hour K-line began to bend downward. However, at this time, the four-hour K-line, daily K-line and other trends have not yet shown signs of downward trend, so most of the
People still don’t feel the fear of falling.
At this time, some belated investors were still buying at low prices. However, they found that it was difficult for the products they bought to rise, and they were trapped as soon as they bought them.
At this time, the experts began to increase the intensity of short orders.
The seventh stage: fear. As it no longer reaches new highs for a long time and continues to fall slightly, profitable investors begin to clear their positions and the market begins to fall sharply. All 15-minute K-lines, half-hour, one-hour, and four-hour K-lines appear.
It fell, and there were three big negative lines in one hour and four hours in a row, and the fear became more and more amplified. At this time, the purchase took less than five minutes to be locked up.
At this point, the master begins to gradually make profits.
The eighth stage: Despair, the house leaks and it rains all night, major bad news appears, the market begins to fall regardless of the cost, and more than four four-hour negative lines appear. At this time, short selling at any point can make money, and buying at any point is a lock. Financial
Products were leaking thousands of miles and falling sharply. At this time, the prices of financial products seriously deviated from their financial indicators, and long-term investment income significantly exceeded bank interest dozens of times.
At this time, the master has finished clearing his position and gradually establishes long orders in small quantities.
Stage 9: Return to calm: With the closing of short positions, the market sometimes rose and then fell, and began to stop falling all the way. Various K-lines began to be repaired, first stabilizing in 15 minutes, half an hour, and one hour
, the four-hour K-line gradually flattened. All parties operated cautiously, and financial products began another cycle.
At this time, experts gradually build positions and wait for another rise to make profits.
Classmates, this is the operation process of financial product investors. Based on the teacher’s description just now, you can talk about your future operation ideas.
"Teacher, I understand. In other words, buying in desperation and selling in extreme enthusiasm will make the most profits and operate with ease?"
"Yes, but at this time, financial products fluctuate greatly. You need to control your position. You should buy with a very small number of orders. Otherwise, you may be directly liquidated by a short-term drop."
For example, today is November 2022, and the Hang Seng Index in Hong Kong has fallen to 14,500 points. This drop is already too low, so teacher, I bought a small amount and bought a small amount. It has now risen to 17,500, because as time goes by,
Changes, the K-line will gradually repair, this is the desperate process of buying, just control your position.
“I feel it’s best to go with the trend and go short when there is a clear decline. You can make profits even in the middle of the decline, and the same is true during the rise.”
"Well, this classmate is absolutely right, but in the process of decline, there will be a small rebound, and sometimes there will be a relatively large rebound, so the timing of selling during the decline stage is also very important. At this time we
Try to choose a correction during the decline, and then go short when the K-line goes flat at one minute or five minutes. In the rising stage, you can buy when the K-line goes flat at one minute or five minutes."
"That is to say, as long as the mid- to long-term K-line trend of one hour, four hours, etc. does not change, we can follow the trend."
"Yes, but there is a factor here. Sudden political, economic, and environmental factors will change this trend. For example, war, interest rate increases, epidemics, currency issuance, etc. will all change the market direction, so you should control it at any time.
Don’t always operate with a full position, or even if you succeed 99 times, one failure will kill you.”
Wow, teacher, you are so awesome. The five-minute and fifteen-minute K-lines have already risen, and the Hong Kong index is gradually recovering.
Well, also, for example, the euro, pound, and gold have all fallen sharply. In the long run, they will not fall forever, so now is the time to buy in small amounts.
Chapter completed!