Chapter 12 Chapter 12 "Leading the Sheep" and Correct Judgment and Following the Trend

In the section "Take advantage of the fire", we once mentioned a term: "herd mentality".To put it bluntly, just go with the flow.For example: A woman wears a very beautiful fashion one day, other women see it looks good, so they also buy it.When people rush to buy, the price of this fashion will rise.In fact, most women may not particularly like this kind of fashion, but it is just the influence of "herd mentality".Similar things often happen in the stock market: when one person sells a certain stock, others will respond accordingly. All the way down.It can be seen that people's herd mentality will also have a major impact on stock prices.In this way, it also gives those who "take advantage of the fire" an opportunity to take advantage of.However, most of the people who use this technique to make money are veterans of the stock market. They have rich experience, sophisticated methods, and strong strength as their backing, so they dare to take risks.As for the majority of small and medium investors, you should keep in mind a stock market motto: "Don't go against the trend." It warns people that if everyone is buying, you should also buy instead of selling.Because for small stock investors, they can't talk about manipulating the stock market, they can only follow the stock price trend and adopt homeopathic investment method.When the general trend of the stock market is upward, it is advisable to go long or buy stocks and hold them; but when the stock market is not working well or the stock price trend is downward, it is better to sell the stocks in hand and have cash to wait for the opportunity.This investment method of following the general trend seems to have been recognized as the "golden rule" for small investors. Anyone who follows the trend will not only get twice the result with half the effort, but also greatly increase the possibility of profit. Of course, the premise of all this must be that you have a correct judgment on the stock market trend in a certain period.Therefore, for small and medium investors, it is very important to "judge correctly and follow the trend".

Perhaps, some investors will ask: Before entering the stock market, I can understand the relevant market conditions and formulate an operation strategy through technical analysis) After entering the stock market, I can also invest according to the operation strategy I have drawn up.However, when the stock price fluctuates in the direction I expected, I don't know how to take advantage of the victory to pursue and expand the results. I often miss the opportunity in complacency and lose the possibility of expanding profits. And for"?In order to enable readers to obtain the maximum benefit and avoid the situation of "not much profit, but much regret", we hereby introduce a method to take advantage of the victory and expand the results.

According to common people's understanding, investors who buy stocks at a low price when they predict that the stock price will rise should immediately sell them at a higher price when the stock price really rises.This kind of thinking is certainly good, but it is very likely to lead to "not much profit, but a lot of regret", because if the stock price is still rising after the stock is sold, and the increase is still large, investors will lose money. Big profits are possible.The law of chasing after winning is different. It advocates that when investors predict that the stock price will rise for a long time and it has been verified by facts, they should buy again and again, chasing after winning, but the quantity of buying should gradually decrease as the price rises. And stop buying at the expected price; after stopping buying, if the stock price is still rising as expected, start selling, but not at one time, but gradually expand the number of stocks sold as the price rises.

First of all, because the strategy of gradually reducing the purchase volume as the price rises is adopted when purchasing stocks, the average cost of purchasing stocks (cumulative expenditure divided by cumulative purchase quantity) is only 13 yuan higher than the lowest level (the average cost is 13.03 yuan, thereby almost eliminating the possibility of losses caused by a sudden drop in the stock price due to abnormal factors during the purchase phase. For example, after the stock price rose to 16 yuan, it suddenly fell to 13 yuan, because eight investors He had already bought 650 shares at the price of 12.92 yuan, so he sold all 650 shares at a low price of 13 yuan, and he could make some small profits.

Secondly, because of the batch-decreasing purchase tactics adopted in the stock purchase stage, the eight investors hold more and more "long" chips in their hands while avoiding risks.As long as the stock price can continue to rise as he predicted, he can make a lot of money. It is really "defense with offense, and fight for every inch of land". Third, because after you stop buying, you don’t sell all the stocks in your hand at once, but wait and see the opportunity, and gradually increase the batch of sales as the price rises, so that the average income from selling stocks (cumulative income divided by cumulative selling quantity) ) 29.11 yuan is only 0.89 yuan lower than the highest price.This not only avoids the risk of losing the profits already at hand due to the sudden drop in the stock price, making it difficult to sell the stocks in hand, but also obtains the maximum income.The reason why the sixth investor is so confident and bold is that he has left sufficient reserve force for himself at the stage of buying stocks.As mentioned above, the average cost of the 660 shares purchased by the six investors in the buying stage was only 13.03 yuan. The same can be sure of winning.In the end, now that the winning ticket has been secured, the eight investors can of course sit on the Diaoyutai. When the price rises, he sells a batch, and adopts the strategy that the number of sales increases with the price rising. The result is naturally "the biggest profit, The least regret".

To sum up, the brilliance of this method of taking advantage of the victory and pursuing it lies in the fact that every step is taken into account, the offense is the defense, and no ground is conceded.It does not sell immediately when the stock price just rises, but actively seizes opportunities, can make a difference at all stages, and can make profits at different times. The superposition of such profits is naturally considerable.This principle has many similarities with the "leading the sheep by hand" in "Thirty-Six Strategies". "Leading the sheep by hand" means that when you are on the road, you suddenly see a sheep by the side of the road and take it home by hand.It was a windfall.Things in the world are ever-changing, and sometimes they are very subtle. Often, unexpected bargains are obtained unintentionally, and some are forced by the situation, "lost in the east, harvested in mulberry".On the surface, this coincidence seems to be lucky, but in fact it is "man-made", and it has the meaning of "taking advantage of the gap" in the military.

"Leading sheep by hand" is the sixth strategy in the second set of enemy strategy in "Thirty-Six Strategies". "Where there is a small gap, you must take advantage of it; if you have a small profit, you must gain it. Shaoyin, Shaoyang." It means that in war, we must take advantage of the small loopholes that appear on the enemy in time, and turn the enemy's negligence that just appeared into our success. the beginning.When the army is in motion, there will inevitably be loopholes, so seize the opportunity in time to win.This is the essentials of "leading the sheep".

In 770 BC, in order to destroy the Song State, Zheng Zhuanggong, on the pretext that Song Shanggong did not meet with the Emperor Zhou, united the two countries of Lu and Qi, and attacked the Song State in the name of praying for sins.Duke Shang of Song Dynasty saw that the enemy was coming very fiercely, so he hurriedly summoned the ministers of civil and military affairs to discuss countermeasures. Grand Sima Kongfu Jia offered a plan and said: "The country of Zheng will be invaded, and the country will be empty. Our army can take advantage of the opportunity to attack its important town Xingyang. , then our country will be in no danger." Duke Shang of Song adopted his suggestion, and at that moment he worshiped Kong Fujia as a general, united Wei and Cai, and attacked Zheng Guo and Xingyang.Zheng Zhuanggong really dispatched the frontline army to return to the country for rescue, and the Song Dynasty finally turned the danger into safety.

Seeing that the strategy had been successful, Kong Fujia ordered the withdrawal of troops back home.During the march, some of his subordinates suggested to him: "Our army will go on an expedition, and we should gain something. This time, we can pass through the country of Dai. You can send someone to ask the king of Dai for an excuse, and we can use this opportunity to destroy the country of Dai. "Confucian father Jia was eager to make contributions, and even called it a wonderful plan, so he sent an envoy to Dai Guo. After the envoy arrived in Dai State, he explained his purpose to Dai Jun.Dai Jun knew that Kong Fujia had bad intentions, so he refused the request for an excuse.After receiving the emissary's report, Kong Fujia was furious, and immediately ordered the Song army to besiege Dai and attack day and night.Dai Guo is weak and powerless.Dai Jun suddenly remembered that Zheng Guo was the mortal enemy of Song State, so he sent people to break out of the siege and ask Zheng Zhuanggong to send troops to rescue.Zheng Zhuanggong didn't want to meddle in this nosy business, but suddenly he had an idea, called his generals to give such and such instructions, and then sent troops to Dai Guo.

After Zheng Jun arrived, he killed the army of Song State. Dai Jun was very happy to see the arrival of Zheng Guo's reinforcements. He immediately opened the city gate and welcomed Zheng Jun in.Unexpectedly, after Zheng Jun entered the city, he took advantage of Dai Guo's negligence to take precautions, disarmed Dai Jun, and easily wiped out Dai Guo.Kong Fujia saw that Zheng Guo took advantage of his efforts to attack the city, and couldn't help being furious. However, Zheng's army was strong, so he had to watch Dai Guo become Zheng Zhuanggong's pocket. Zheng Zhuanggong's behavior is a typical "take the sheep by the hand".In war, opportunities are generally exposed suddenly, and they have the characteristics of coming and going, winning smoothly, and winning smoothly. This requires commanders to be able to assess the situation and command flexibly. "Leading the sheep by the hand" is a strategy to create and capture fighter opportunities. The key lies in how to take advantage of the enemy's gap to win and expand the results of the battle.The same is true for the method of chasing after victory in the stock market.After buying stocks, ordinary stockholders want to sell them even if the stock price rises slightly, for fear that the ducks they get will fly away.In fact, in the next period of time, there are still many fighters that can be captured and many benefits can be obtained. Wouldn't it be a pity to give up it?The method of taking advantage of the victory and pursuing it is a method to maximize the results of the battle, that is, "to take advantage of the sheep".

In order to be able to truly grasp the true knowledge of the method, investors should also remember several key points of the "pursuit of victory": First, you must use this method of operation under the general trend of stock price rising in a long period of time, otherwise, it is likely to make you lose money. Second, in the buying stage, gradually reduce the quantity bought each time as the stock price rises; in the selling stage, gradually increase the quantity sold each time as the stock price rises.Only in this way can we reduce the cost of buying, increase the income of selling, and reduce the risk to the lowest level. Third, you should choose an appropriate point to stop buying or start to sell. If it is too early, it will reduce your profit; if it is too late, it will increase the risk you have to take.Although this point is difficult to grasp, as long as "stop buying when the price upward trend is still very clear", it is possible to roughly accurately grasp the buying and selling prices.Fourth, in the buying stage, if the price rises rapidly, the amount of each purchase should be small and the number of purchases should be more; on the contrary, if the price rises slowly, the amount of each purchase should be larger less frequently.In the selling stage, if the price rises fast, the amount of each sale should be more and the number of sales should be less; on the contrary, if the price rises slowly, the amount of each sale should be less and the number of sales should be less. want more. If you can master the above points, you can use the method of "pursuing the victory" to get the best effect of "taking advantage of the situation".