[Red Envelope] How to determine the direction, lock in the main trend, distribute positions evenly, and manage positions reasonably? A detailed weekly sharing of ideas!

[Taoguba]
The blogger has been a full-time trader for 6 years with 11 years of trading experience. Skilled at perceiving subtle changes in the market, with a forward-looking sense of market patterns. Good at analyzing the rhythm of indices, themes, and market sentiment; low-entry buy patterns are becoming more refined. Among Taoxian’s low-entry bloggers, I hold my own place! Stable monthly profit of 20%, annual compound interest is 8 times. Stable monthly profit of 15%, annual compound interest is 4 times. Stable monthly profit of 10%, annual compound interest is 2 times. The blogger’s desire is not high; around 10% stable monthly profit is enough. More than that is just gratitude for the market’s feedback! Maintaining a good mindset, treating trading as a joyful activity—why not enjoy it?

The best offense is defense. Control emotional rhythm, flexibly manage positions, strictly divide positions, and control drawdown risk. Slow is fast; compound interest will expand your imagination! The so-called leading stock strategy of relay trading—how many leaders can there be in a year? That’s a road to no return. Nine out of ten traders fail; surviving one is a genius!

The blogger successfully transitioned from a trader to a professional. Here, no need for quick trades; what matters is market understanding! This will open your new horizons. Trading is fundamentally a contest of market cognition. Only by standing shoulder to shoulder with high-awareness traders can you see the market’s essence, avoid risks, and grasp the flow of wealth.

Following is our destined connection. Many bloggers have countless ideas, but only a drop in the vast water. Only with your frequent likes, tips, and encouragement will you stay on course. Giving generously—what you give is also recognition of my ideas. My pre-market insights are truly golden, waiting for you to discover! I sincerely wish all friends, new and old, a continuous rise in 2026!

1. Returning to the main topic: How to use confirmed directions, lock onto main lines, spread positions, and manage positions reasonably to cope with fast-paced quant trading?

In the current A-share market ecosystem, quantitative funds have become the core force influencing price trends and dominating market rhythm. Their high-frequency trading, algorithmic harvesting, instant reversals, and amplified volatility have ushered in a new normal of fast-paced, high-volatility, low-tolerance markets. Ordinary investors relying on heavy positions, subjective predictions, chasing highs and selling lows are easily harvested by quantitative trading.

To stand firm and profit steadily in such a volatile environment, it’s not enough to just bet on leading stocks accurately. You must establish a systematic, rule-based response framework. Combining spreading positions, locking onto main lines, and managing positions reasonably is the most effective and sustainable core trading structure against rapid quant moves. This system is not just about diversifying holdings; from the three dimensions of direction selection, position structure, and risk control, it forms a complete closed loop—using probability to beat volatility, discipline to counter human nature, and structure to resist shocks.

Locking onto the main line is the premise of strategy formation; it’s absolute focus on direction. Quant funds tend to operate along highly similar patterns, mainly around high liquidity, clear policies, solid industry logic, and news catalysts. Therefore, the first step in trading is not diversification but confirming the direction and locking onto the main line. For example, this week’s core directions include AI power, digital collaboration, Huawei Ascend, oil and gas, token outbound, rare metals, etc., with strong catalysts and high recognition. Locking onto the main line means your positions are always in the area of strongest capital synergy and smoothest trend, fundamentally increasing win rate and avoiding ineffective trial-and-error. Straying from the main line is meaningless; it only amplifies risks and reduces efficiency. Only with the correct direction does spreading positions have value; proper position management is the strategic foundation for dealing with rapid quant markets.

Spreading positions is the core of strategy execution; it’s about structural balance and defense. Spreading does not mean randomly buying more stocks; it involves balanced allocation within the main line, multi-asset layout, and multiple batches of entry. Quant traders excel at harvesting opponents who hold heavy positions, are fully invested, chase highs, or go all-in, often smashing stop-loss levels or inducing false breakouts to exit. Spreading positions structurally addresses this pain point by selecting 3–5 active, trend-resonant core stocks within the main line, with reasonable single-stock positions. Avoid betting on the leader or single stocks; enter in batches, building positions step-by-step at support levels and moving averages, avoiding chasing highs, effectively averaging costs and reducing impact. Even if one stock is suddenly attacked by quant algorithms and crashes, the overall account remains unaffected. When the main line rises, the strategy allows you to leave the weak and keep the strong, fully benefiting from sector rotations and trend markets led by quant. This greatly improves trading fault tolerance.

Reasonable position control is the bottom line of strategy safety; it’s dynamic risk management. Position control ensures the sustainability of spreading positions. The core is controlling total position size, setting clear limits on individual stocks, and maintaining appropriate sector concentration. In fast-paced quant markets, risk often stems from position overexposure rather than misjudgment. Keep total positions between 30–70%, reduce to 20–40% during volatile periods, and no more than 20% during downturns, always reserving cash for sudden changes. No single stock should exceed 40%, unless in a clear main upward phase; rolling T+0 trading should not exceed 60%. Heavy positions or all-in bets are taboo. Proper position control keeps the account resilient—attack when possible, defend when necessary—avoiding heavy losses in extreme conditions. For example, this week’s Monday and Tuesday, aside from geopolitical themes, other sectors suffered heavy hits. Proper position control prevents irreversible drawdowns caused by extreme market swings. In fast markets, survival is more important than quick gains—stay alive first, then seek profits!

Combining these three elements—direction locking, spreading, and risk management—forms a complete closed loop: defining the main line, structuring the spread, and guarding against risks. This precisely counters the core advantages of quant trading. Quant relies on speed and algorithms for profit but cannot counteract a balanced, diversified position structure; it exploits human greed and fear but cannot break disciplined position rules. During market rallies, the strategy captures main line dividends; during oscillations, it smooths returns and reduces drawdowns; during crashes, it calmly reduces risks and adjusts.

Fast-paced quant markets are an irreversible long-term trend. Investors cannot change the environment, only adapt to the ecosystem. Only by following the principle of “taking only a drop from the vast water,” and controlling positions in a fast market, can you succeed. Stick to locking onto the main line without deviation, spreading positions without gambling, and managing positions reasonably without being aggressive. Use rules to counter algorithms, probabilities to beat volatility, and discipline to restrain human nature. Only then can you navigate steadily in a quant-dominated market and achieve long-term, steady, sustainable investment returns.

2. This week’s simulated pre-market review (detailed explanation of direction confirmation, main line locking, spreading, and position management, as a reference)

Last Friday, based on pre-market ideas, I focused on domestic computing power strengthening and the return of small metals. Based on auction and market feedback after opening, I spread positions in domestic computing power and small metals.

For domestic computing power, TaiJia shares were watched at auction. Capital was added to Capital Online and Huasheng Tiancheng at intraday. Runze Technology’s small green was added. During the day, Wangsu Technology’s sharp drop caused sector-wide damage, so all positions in Capital Online, Huasheng Tiancheng, and Runze Technology were closed.

For small metals, Xianlu Tungsten and Yunnan Zinc were monitored at intraday. Biejite was watched at 1. Yilong Tungsten and Yunnan Zinc maintained their positions at 1.

For power grid, Tongyuan Petroleum and Chihong Zinc & Ge were canceled.

Total position: 60%.

Last Friday, Capital Online rose up to 18%

This Monday, geopolitical conflicts, uncertain pre-market, with conflicts following futures, then aligning. Intraday climax, but after half an hour, sector rotation was disorderly, and by close, sectors suffered heavy losses. The pre-market idea remained spreading, focusing on geopolitical conflicts, domestic computing power, small metals, and commercial aerospace.

Geopolitical conflicts, focus on Tongyuan Gas at 1, then buy on dips. The 20cm recognition logic indicates uncertainty, constrained by futures, so not suitable for heavy positions that day. Especially the 20cm, if it opens wide, a significant gap down is inevitable, so only light testing. After market divergence, it turned consistent, with conflicts intensifying, so heavy positions can be considered in hindsight.

Domestic computing power, TaiJia shares, added at auction 1, then reduced to 2. After a surge, understanding that computing power strengthened. Capital Online, added at 0.5, total 1.5. Actual market did not follow with strength, so positions in Runze Technology and Huasheng Tiancheng were closed, leaving only 0.5 in Capital Online.

Small metals, BeiJieTe monitored at 1. Yilong Tungsten and Yunnan Zinc maintained at 1.

Commercial aerospace, Xinwei Communication monitored at 0.5, as China Satellite’s surge to limit up was a logical catalyst.

Total position: 60%.

Tongyuan Petroleum resumed its upward move as expected, gaining 20cm the next day. Xiaocheng Technology hit the limit up intraday as expected, with a maximum gain of 15% the next day.

This Tuesday, market index turned downward, triggering a false breakout followed by a reversal! Geopolitical conflicts intensified, intraday peaked, indices fell sharply, other themes suffered heavy damage. After auction, conflicts exceeded 10, mostly at one word, beyond expectations. The idea was to trust early signals on conflicts, avoid large positions before 10cm, and spread at 20cm for arbitrage.

Geopolitical conflicts, focus on Tonghua Gas at 2, DeShih Shares at 2, auction spread positions. Tongyuan Petroleum at 1, with a 200% abnormal move, but per trading rules, avoid, so canceled at auction.

Intraday conflict climax caused heavy bloodshed, other themes heavily damaged, so reduce focus or close positions, and control positions reasonably.

Domestic computing power, TaiJia shares at 2, closed in two batches. TuoWei Information, monitored at 1 intraday. Capital Online, added at 0.5, total 1.

Small metals, BeiJieTe reduced to 0.5.

In extreme market conditions, spreading positions even if a single stock crashes significantly has little impact on the overall account, total position at 50%.

Trust early signals, arbitrage at 20cm, Qianhua, QianNeng, DeShih, XinJin all limit up. No problem for the second day auction.

This Wednesday, the index fell again, with a low of 4055 points intraday. Geopolitical conflicts opened with immediate partial realization, then partial recovery at close. Greatly catalyzed by investment in power grids, the strongest intraday theme was AI power, with other themes rotating disorderly. Volume shrank sharply to 763.7 billion, the number of limit-down stocks decreased sharply, indicating some bearish exhaustion. 4055 points is roughly the bottom of this correction. After auction, comments indicated divergence in oil & gas, storage, and computing power anomalies.

Oil & gas, focus on Tonghua Gas at 2, DeShih Shares at 2, auction spread positions. Oil & gas showed clear divergence expectations, but after opening, strong divergence was realized.

Storage chips, Shannon Xinchuang, monitored at 1 at auction. Driven by Bowe Storage’s performance, auction volume surged beyond expectations. Sector follow-through is uncertain; no spreading in Jiangbo Long, so choose one.

Domestic computing power, TaiJia shares at 1. TuoWei Information, added 0.5, total 1. Capital Online, added 0.5, total 1. Logic: Huawei Ascend and Chuanrun shares quickly hit limit up. After opening, Chuanrun, near moving averages, was monitored at 1; the logic is that re-closure has a high probability. TuoWei and Capital Online, after opening, closed in two batches, leaving 0.5 each.

Small metals, BeiJieTe reduced to 0.5.

Under the decline of the index, stabilization is not achieved; proper position control is necessary—attack when possible, defend when necessary. Keep total positions around 40%.

Auction signals early warning, oil & gas divergence, immediately realized after opening. Domestic computing power, Chuanrun shares, surged straight to limit, then filled the gap and re-closed.

Recognition: DeMinli limit up, Jiangbolong soared, Shannon Xinchuang small rise.

To compensate for the lack of quick response in the morning, Chuanrun shares re-closed as expected, with a maximum of 7% gain the next day.

This Thursday, sentiment and index resonated for recovery, market broadly rose, volume shrank, themes rotated disorderly.
Intraday LED surged, AI power strengthened.
Pre-market clear idea: declining momentum exhausted, sentiment and index likely to resonate for recovery.
AI power, ShunNa shares, large orders led the way; Baobian Transformers and Wangbian Electric hit the limit, potentially breaking the plateau, with two options in auction. Focus on Wangbian Electric 2. New Tech Electric, with flexible 20cm, small green at 1.

In a shrinking volume environment, the market broadly rebounded, themes not concentrated. Continue spreading positions, total position kept at 55%.

Shannon Xinchuang surged significantly on Friday, Wangbian Electric hit the limit as expected.

New Tech Electric, with a maximum gain of 7% on Friday.

This Friday, the index’s auction was the lowest point, with shrinking volume and gradual rise, closing higher than expected. Themes continued to rotate as usual.
LED was immediately realized at open; the two sessions of the “算电协同” (power and computing synergy) theme strengthened, traditional power and power export transformers, gas turbines, etc., showed no increase. Continuous divergence in chemical sectors rotated intraday; Huawei Ascend’s abnormal movement at close lifted the market.

Pre-market focus: “算电协同” showed anomalies, except for ShunNa shares, but no clear guidance. The “算电协同” position was small, with JinKaiXinNeng opening slightly higher.
Growth board elasticity, NanWang Digital, opened 5.75%, volume only 0.38 billion—too small, no choice in auction. After opening, JinKaiXinNeng quickly hit limit, NanWang Digital surged without cost-effectiveness, and “算电协同” abandoned focus after open.

Domestic computing power, pre-market news highlighted global control of Nvidia and AMD chips. Huawei Ascend 950 was released in Barcelona on March 2; system integration, bandwidth, and storage already surpass Nvidia, which is positive for the market but met with a muted response from mainstream media. Overseas chains have outperformed domestics, but Silicon Valley AI is bubble-like; expectations are heavily overdrawn, with institutions caught deep. DeepSeek v4 will be released soon, with early access to Huawei Ascend 950, indicating a focus on domestic chain. The outbound potential of tokens will be stronger later; domestic computing power should be valued.

In summary: 1. Nvidia and AMD chips are under global control, pushing domestics to replace. 2. Domestic substitution, Huawei Ascend’s importance is unquestioned.

Huawei Ascend has the strongest logic and highest recognition; TuoWei Information is an unavoidable target. Positioning appropriately for lurking is logical; the late surge to limit is a pleasant surprise. Low entry is based on probability and logic, increasing win chances. No gods here—no hindsight—so why not go all-in if the odds are strong? Some friends ask why not choose Huasheng Tiancheng? Now you understand: isn’t Huawei Ascend and TuoWei Information the strongest logic?

TuoWei Information monitored at 2 in intraday small green. The market was narrow and volatile all day, with a big order igniting at the close, crossing the moving averages. Add at 1, as previously suggested. TuoWei Information, total 3.

Capital Online, followed by copper cattle info, had a rise on Thursday, showing signs of stabilization. On Friday, auction fell by -4.67%, with good value; add at 1, with some core holdings for rolling. Cancel focus at 1 later, leaving 1.5.

Data center diesel generators, Taihao Technology, opened high with accelerated volume shrinkage, holding the pressure without opening the plate. Cotech Power, leading in the domestic data center diesel generator market, monitored at 1 for arbitrage.

Small metals tungsten, strong trend, divergence on Thursday, abnormal movement on Friday. Zhangyuan Tungsten monitored at 1.

AI power, Wangbian Electric at 2, then unfollowed. New Tech Electric at 1, then unfollowed.

Storage chips, Shannon Xinchuang at 1, then unfollowed; the sector’s strength was missed, with a big surge later.

Total position control at 65%, attack or defend as needed.

TuoWei Information successfully lurked.

Follow the A-B thinking

Through these 6 days of simulated pre-market trading, spreading positions, confirming directions, locking onto main lines, and managing positions in detail—just as a reference. In the normal fast-paced quant environment, sticking to the main line without deviation, spreading without gambling, managing positions reasonably without being aggressive—using rules to counter algorithms, probabilities to beat volatility, and discipline to restrain human nature—are the keys to steady, long-term, sustainable investment in a quant-led market.

One week of detailed simulated pre-market analysis is just a spark; overall account performance is not brilliant, with some stocks like Biejite and Xinwei Communications heavily damaged, others lightly. But proper position control and spreading can effectively prevent account drawdowns. In a fast quant environment, survival is more important than quick profits—slow is fast, and compound interest will expand your imagination.

I hope old and new friends following Brother Ding learn the ideas and logic, not just the code. Starting next week, pre-market trading will no longer be detailed down to positions; pre-market ideas will continue, but intra-day sharing will be less to avoid fostering laziness. Improving your market understanding is the real solution.

Friendly reminder: The simulated trading sharing is just my personal market understanding record. No investment advice is given; trade at your own risk.
Follow the ideas shared—if you profit, I won’t see tips or encouragement. If you lose money, don’t blame others—look for your own reasons. I am grateful for the tips and encouragement from old and new friends, and I wish you all to reach stable profitability soon.

2. Next week’s index and theme projection

1. Outlook for the Shanghai Composite Index

This Tuesday, the Shanghai Index triggered a false breakout with a high of 4197 points, then reversed downward. By Wednesday, it dipped to 4055, with a maximum decline of 142 points in two days. Bearish exhaustion, then Thursday and Friday, sentiment and index resonated upward, broad market rose with shrinking volume, themes rotated disorderly. The market’s enthusiasm peaked, with over 4,000 stocks closing green for two consecutive days. The risk is that continuous volume-shrinking rises do not support further index attack. After Friday’s close, Dow Jones fell 0.95%, Nasdaq down 1.59%, tech stocks declined. A50 futures fell 0.92%. The Shanghai Index faces pressure; watch volume carefully—if volume does not gently expand above 2.5 trillion, expect downward correction, with 4085–4055 points as a key zone to re-verify.

2. Key theme projection and outlook

After Friday’s close, major tech stocks plummeted: Nvidia down 3.01%, AMD down 3.52%. Micron, SanDisk, Western Digital (storage) down over 5%. Corning (fiber optics) down 8.5%. Nvidia’s supply chain faces further pressure. The storage chip divergence expectations re-emerged. Corning’s continuous decline invalidates fiber optics logic. WTI crude oil futures surged 12.67%, domestic futures up 14.20%. With rising futures, will oil & gas follow?

(1) Power and computing synergy (16 limit-ups)

Logic remains the big picture of increasing power grid investment, one of the themes selected by quant. Auction is not strong; ShunNa shares are in position, Thursday led transformer sector, with expectations of a one-word limit-up, but order book weakened. Power + computing, 2nd tier, XinNeng TaiShan, auction only small green, opened with accelerated volume and limit-up, driving the sector.
3rd tier: ShunNa Shares, HanLan Cable.
2nd tier: JinKaiXinNeng (green power + computing), MeiLiYun (green power + data center).
First tier: AoteXun (data center power supply), GuangDian Electric (power grid equipment + data center), GCL Energy (virtual power plant + computing center), Jiangsu Huachen (smart grid + data center transformers), China Energy Construction (power and computing synergy) at high level, YuNeng Holdings (green power + computing) with 20cm flexibility, NanWang Digital (power grid digitalization + data center), etc.

Early morning rapid fermentation, but no further expansion in the afternoon—half-day market. NanWang Digital’s late order missed, spreading based on quant, with divergence expected. Observe whether at least two limit-ups are at one word, and at least one among ShunNa, HanLan, to meet expectations.

(2) Chemical sector (14 limit-ups)
After continuous divergence, funds re-enter, with 14 first-tier limit-ups, full-day fermentation. Logic: price increases driven by geopolitical conflicts—methanol, phosphates, epoxypropane, titanium dioxide, organosilicon, etc., with various reasons. Risk-averse rotation.

(3) AI energy (8 limit-ups)
TaiHao Tech (data center diesel generators), surged to 2 limit-ups, indicating the direction. Seven first-tier limit-ups intraday, including diesel generators and gas turbines.

Sentiment focus: TaiHao Tech, with volume reduction and double limit-up, then divergence at 3rd tier. Watch for divergence turning into consensus. If gas turbines also hit 2 limit-ups, then DongFang Electric’s divergence could be a low-buy opportunity.

(4) AI computing power (12 limit-ups)
2nd tier: Aosikang (PCBAI servers + overseas AMD), MeiLiYun (data center + green power)
First tier: 10 stocks, with TuoWei Information as the core with high recognition, and TaiJia shares as the high recognition at sentiment high.

Big picture: Nvidia and AMD are under global control, with a focus on domestic substitution. OpenClow (Lobster AI) fermented over the weekend; its core is not chatbots but connecting large models with the real world—acting as executable digital employees, prioritizing local, autonomous, multi-channel engagement. Chinese tech giants are deploying OpenClow ecosystems, forming a complete cloud-service + computing + chip + edge matrix.

Late Friday, domestic computing power saw early capital deployment. HangJin Technology and TuoWei Information hit limit-up, with rumors of DeepSeek v4 release as a trigger. But quant and institutions favor overseas chains; domestic chips lack persistence. Focus on Huawei Ascend’s core recognition, TuoWei Information. Will auction feedback be positive? Will opening lead to oscillation and even limit-up? That’s the key to sector strength.

How to respond on Monday? See the pre-market ideas around 8 am. Brother Ding’s pre-market insights are golden—waiting for you to discover! Hope old friends, please give a free like, and support with 100 points or a cheer coupon—your support motivates me to keep analyzing and sharing.

Disclaimer:

The case review is only a personal record of ideas!
Investing involves risks; trade cautiously. Plans never keep up with market changes—follow the market!
The article reflects my understanding only; for personal sharing.
No investment advice; trade at your own risk!

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