These 11 "dumbest and simplest" methods, from clueless to proficient, will help you easily earn a 90% profit!

First of all, thank you all for your concern. I am feeling much better today. Seeing so many loyal fans in the comment section last night caring about Shun Shi still moves me deeply. I’ve been in Taoxian for several months now, and that’s also the reason Shun Shi keeps moving forward! [Taogu Bar]

Let me introduce myself. I’m not a second-generation rich kid. I was born in a remote mountain village. The most valuable thing at home was my father’s squeaky motorcycle, and my mother’s careful calculations at the market over a few cents. I swear I would get out!

In 2010, I made a decision that made my whole family think I was crazy: quit my stable job, and with the savings from working for a few years plus borrowing 1 million yuan from family and friends, I went all-in on stock trading. No backup plan—I was my own backup. An 8-square-meter rented room and a computer were my entire world. I experienced the panic of a single-day crash and endured months of sideways trading. During the hardest times, my account shrank by nearly half. I ate only plain noodles for three months and didn’t dare tell my family.

That loneliness and pressure could have crushed me. But I held on because I knew I didn’t come out of that endless mountain village to go back. Wealth accumulation isn’t about getting rich overnight; it’s more like a long-term “compound interest” journey.

Today, my trading account holds a market value of nearly 30 million yuan. Sitting in a restaurant in Lujiazui, looking out at the river view, sometimes I still feel surreal. That bright city lights once looked like stars in my alleyway. What I’ve achieved isn’t just financial freedom but also fulfilling the imagination of that young boy in the mountain, about the possibilities of life.

I still watch the market daily, review my trades, and tread carefully. The market is always the best teacher, and I am just a lifelong student afraid to graduate. This path is narrow, but I thank my younger self who came out of that small mountain village. With sixteen years of persistence, I’ve made it my way home.

Before enlightenment, it’s as hard as climbing to the sky; after enlightenment, it’s as easy as flipping your hand. Many stock market experts find trading simple after gaining insight. Many retail investors believe that successful traders earn through endless studying and losses, and it’s normal they don’t want to teach others. Plus, what they share isn’t the core.

The process of gaining insight into trading is the same: from seven losses to two breakevens and one profit. It’s about staying focused, not chasing various profit models; old trade records become waste paper; from talking endlessly about the market to being silent. Here are 11 personal insights I’ve summarized:

1. Stock selection shouldn’t rely on feelings or guesses about how much it will rise. Follow the logic: start with hot topics, observe capital flow and market sentiment, then look at stock price, technical patterns, and volume, and finally consider performance! Use leverage wisely—standing on the shoulders of giants (main players) helps see further. To identify main player involvement, look for large capital inflows and recent strong limit-up days.

2. I believe volume is very important. Mastering this will crush 80% of traders. A volume ratio below 0.5 indicates significant shrinking volume, which can still hit new highs, showing strong control by main players and ruling out distribution. If the stock is in an uptrend, the chance of profit is high. If a stock hits the limit-up with volume ratio below 1, it still has room to rise, and a second limit-up the next day is very likely. If volume ratio exceeds 1.5 and breaks through key resistance (like the 20-day moving average) then pulls back with shrinking volume, it’s a rare buy.

3. 90% of retail investors misunderstand chasing rises and selling declines: proper chasing is at the start of a stock’s rise or during a downtrend! But it requires solid skills. Plan your trades, trade your plan. Remember: we can’t predict the future, but we can plan. If a stock rises the next day, how do you act? If it falls, what’s your response? Many investors only think about how much they can make if it rises, rarely considering what to do if it falls. That’s a lack of planning and strategy. Acting arbitrarily, with main players intentionally shifting chips, your shiny holdings can only be transferred away.

4. Don’t buy stocks that break below key support levels. Whether they will rebound later or not, a short-term break below support indicates the market’s overall pessimism and makes a quick rebound difficult. Also, it’s likely the main players have already exited, and entering now is like digging an endless pit.

5. Don’t buy stocks far from the 5-day moving average. The 5-day MA is the most sensitive. If the stock price is far from it, it indicates a rapid short-term rise. When the rally stops, many profit-takers will sell, increasing risk. Buying at this point is risky—possibly buying at a high.

6. After big gains, learn to hold cash. Retail investors often become arrogant after making big money, but overconfidence leads to failure. Big gains can make you forget the value of time. After success, confidence increases; after multiple successes, overconfidence explodes. Believing your judgment is perfect, you buy immediately when confident. If wrong but with small loss, confidence isn’t hurt much. Only big losses sharply reduce confidence, making you more prone to reckless moves. Don’t try to catch every sector’s opportunity. Those chasing two rabbits often catch neither.

7. Don’t sell stocks with upward gaps at low levels. Not all gaps will be filled. An upward gap at a low level indicates bulls have the dominance, and the stock will likely move along the gap. Don’t think about selling first; wait for the gap to fill before re-entering. Don’t sell stocks that plunge at the end of the trading day. If a stock’s intraday chart shows a straight jump in the last 15 minutes, it’s often a deliberate move by the main players to make the K-line look bad. The next day, it usually rises for several days. Don’t prematurely exit just because the K-line looks ugly. Don’t sell stocks in an uptrend. When a stock gradually rises along the 10- or 20-day moving average, don’t try to sell and buy back at the low; wait for a dip to re-enter. The trend often doesn’t give you that chance—just buy on the rise.

8. All trading methods are probabilistic. Through risk control, position management, and capital management, you can turn probabilities into advantages and achieve overall profitability. Think probabilistically about everything in the stock market because the biggest certainty is uncertainty. Every method has pros and cons. Focus on one, build your effective profit model, then expand from there. As your skills and personal capacity grow, your trading will improve.

9. Follow the trend—whether it’s the market, sector, or individual stocks. When the market is in a downtrend, like now, use light positions. The same applies to sectors and stocks. There are three main trends: up, sideways, down. Uptrend is the easiest to profit from. Eliminating the other two greatly increases your success rate.

10. There are many ways to profit in stocks: short-term, swing, medium-long term, breakout trading, etc. Everyone has their strengths, and these can’t be copied easily. Even experts can’t guarantee profits by telling you how they do it. Instead of copying others, learn from their strengths, combine with your own, and develop your own trading style. Repeat within your rules.

11. Capital is king, and trend is king! Short-term trading requires speed, accuracy, and decisiveness. Only act on high-probability opportunities. If there are none, stay in cash. Six keywords: mainstream, proactive, main rise! Remember: don’t buy just because the price is high, and don’t buy just because it’s low. Uptrend stocks are plentiful; downtrends have no bottom. Develop your own short- and medium-long-term strategies. Medium-long-term is about patience and holding; short-term is about chasing hot topics and stocks favored by funds. When the trend is upward, seize the opportunity and don’t fear chasing the rise.

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