Super practical 10 iron laws of the stock market

Today I want to share with you 10 super practical stock market iron rules, whether you are a stock market novice or a veteran who has been floating in the stock market for many years, you can benefit from them.

First, when a stock has two consecutive limit up days, if it does not quickly lock up on the third day's opening, then quickly reduce the position. Many times, after consecutive limit up days, stocks are prone to significant volatility on the third day, and it is important to take timely profits.

The second point is, if the stock continues to fall for 3 consecutive days, and the trading volume significantly shrinks, at this time, you can cautiously buy a small position. Because after continuous large declines, shrinking trading volume often means that the selling pressure is gradually decreasing, and the stock price may be approaching a bottom.

Third, a doji candlestick appears at a high level, accompanied by increased trading volume. This is not a good signal; there is a high probability of a decline in the future, so it is advisable to exit quickly. A doji at a high level indicates a temporary balance of long and short forces, but increased volume suggests growing divergence, with bears potentially taking control soon.

Fourth, a K-line with a long lower shadow appears at the low, accompanied by a moderate increase in trading volume, which is a signal that the stock price may rebound and can be considered for follow-up. A long lower shadow indicates strong support below, while a moderate increase in trading volume indicates that funds are starting to enter.

Fifth, when the stock is in an uptrend, pulling back to near the 20-day moving average to get support, this is an excellent opportunity to add positions. The 20-day moving average is usually an important support line for short-term stock prices. Pulling back to this level in an uptrend often stabilizes and continues to rise.

Article six, the stock is in a downtrend, rebounding to near the 60-day moving average is resisted, at this time, it is necessary to decisively reduce the position. The 60-day moving average is the medium-term trend line. The rebound in the downtrend is blocked here, indicating that the bearish strength is still strong.

Article 7, stocks are consolidating for a long time. Once they break through the consolidation platform and the trading volume increases at the same time, do not hesitate, buy quickly. This means that the stock may start a new round of uptrend.

Article 8, after the release of positive news, stocks do not rise but fall, it is very likely that the main force is using the positive news to sell off quickly. Sometimes the market is counterintuitive. Be careful when good news does not lead to a rise.

Ninth, if the turnover rate suddenly exceeds 30%, be alert to whether the main force is secretly selling off. A high turnover rate often means rapid turnover of chips, which should be treated with caution.

Article 10, when the stock price shows a big bearish line in the downward trend and continues to open low and move lower the next day, don't hold onto illusions and exit quickly. This indicates that the bearish force remains strong, and the stock price may continue to decline.

Friends, mastering these iron laws, I hope everyone can make more and lose less in the stock market.