[Red Envelope] 3.2 Pre-market: Slow is fast, the charm of stable compound interest! External conflicts, is Prince A footing the bill?

The power lies in change—perceive the trend, seek the trend, borrow the trend, ride the trend. [Taogu Ba]

This week, four consecutive days of gains, continuing steady progress. When it comes to controlling retracements and stability, it’s top-notch~~! The rhythm before the holiday was basically satisfactory, with a fully cash position on the last day. The heavily held company, Wangsu Technology, was unfollowed at 2.13, trading near a relatively high point, while avoiding the market’s decline that day; after the holiday, four days—on the first day, a mini position felt out the market’s temperature; on Wednesday, increased to 60%; Thursday, 70%; Friday, back to 60%, with four consecutive days of gains. Except for Wangsu Technology, which performed slightly worse at 10%, others did well. Should we add some chicken legs this week? Haha! If you like it, remember to like, tip, and support with a full package~~

Principles:

Slow is fast, steady is profitable.
Compound interest is not a miracle; it’s the result of careful management.

Tuesday: Fenghuo Communications, Wangsu Technology
Wednesday: Fenghuo Communications, Western Materials, Lio Shares
Thursday: Aerospace Development, Western Materials, Lio Shares, Xinwei Communications.
Friday: High-tech Development, Western Materials, Xinwei Communications, Aerospace Development.

Weekly overview:
On the last day before the holiday, stayed fully in cash to avoid pullbacks; on the first day after, tried a mini position, buying Wangsu at the 5-day low for 10%; on Wednesday, increased position, adding to Western Materials, Lio Shares, Xinwei Communications, and unfollowed Wangsu Technology.
Thursday, unfollowed Fenghuo Communications on the board; Western Materials, Lio Shares, Xinwei Communications all turned positive, continuing the upward pattern; low buy Aerospace Development.
Friday, during the closing auction, unfollowed Lio Shares, Western Materials, Xinwei Communications, Aerospace Development—all remained positive, continuing the pattern; added High-tech Development.

Compared to previous years, the market environment before and after the holiday has weakened somewhat, with reduced strength. The volume after the holiday didn’t surge quickly. From the weekend’s conflicts, it’s clear that large funds have the capacity—no doubt. No wonder big money isn’t entering; they’re waiting for external factors to settle. I also anticipated this before the holiday: the last day’s market judgment that a surge in military stocks was not a good signal, and staying in cash was part of that strategy, as shown in the chart:

Event:
External conflicts, A Gongzi’s usual pattern of buying the dip; tomorrow, watch for any changes, whether it opens low and then rises. Beneficial sectors for conflicts:

1. Military industry
2. Gold
3. Small metals
4. Oil and gas
5. Shipping
6. Chemicals
   Other sectors face pressure. Many still predict conflicts, recalling this week, many bloggers said it wouldn’t escalate, but what happened? Face-slapping! The outcome of conflict events is highly uncertain!

Market style:
Trend-driven, quantitative institutions dominate. Despite the breakout of 7 boards on Friday, previous AI applications also showed breakout signals, like Hengdian Film & TV. But how did that turn out? A-shares dropped! Currently, aside from quant issues, macroeconomic factors also matter. The village prefers slow growth, avoiding madness. After gains, adjustments become routine! Limit height but allow width! Although the environment is somewhat better than before the holiday, the main profit-driving vehicle remains trend-based! Under the dominance of quant strategies, this will be a long-term ecosystem—trend-focused with short-term sentiment as a supplement.

Individual stocks:
Wangsu Technology:
Why did I clear it before the holiday, and only buy 10% during the big dip on Tuesday? The answer was in the review that night~ Looking back, unfollowing at a high point before the holiday, and buying at the 5-day low on Tuesday’s dip, the next day’s Wednesday’s move didn’t lose much. Enjoying the trend’s continuation, a loss is just a few points if wrong.

Fenghuo Communications:
Optical fiber price hikes + Huawei ShengTeng + commercial aerospace—treat according to the pattern. On Wednesday, a pullback to the 5-day moving average increased the position, betting on trend continuation. The trend continued upward for 5 days; on Thursday, nearly hit the limit-up; on Friday, hit the limit-up again. Simply put, trend betting pays off, enjoying more upside space. Comparing Fenghuo to Wangsu, Wangsu lost three or four points, Fenghuo gained over ten—such a cost-performance ratio is worthwhile, right? That’s the trend! Riding the upward trend, if the trend breaks, exit decisively.

High-tech Development:
Huawei ShengTeng, at a low position, why is this within the pattern? Including Tuowei Information, I prefer stocks that start rising after divergence, at the B point within the pattern. If there are no unexpected events over the weekend, these stocks can make good gains.

End of February, start of March:
Looking back at previous markets, major risks have not caused much damage. Summarize the three major declines and how to control retracements:

Second wave of Commercial Aerospace: January 13
Sign: Aerospace Development opened lower and hit the limit-down.
Mostly realized gains at relatively high points, focusing on enjoying the wave of main rises early on. Before the big drop: Aerospace Development unfollowed on 12.31, Leike Defense unfollowed on 1.7, Fenghuo Communications on 1.13, Xinwei Communications, which was already showing volume and positive signals from 12.24, riding the main upward wave!

AI Applications: January 16
Sign: Lio Shares suspended trading.
AI applications suffered some losses, but only about 20% of Naxing Shares’ level, losing a dozen points; Blue Cursor and Lio Shares later made new highs or double tops, mostly at high points. Zhejiang Wenhu Internet also performed well overall.

Precious Metals: January 29
Sign: External gold and silver futures plunged.
No participation, no harm.

Next week:
First, observe if the conflict event tonight shows any change; tomorrow, see if a low opens and then rises. Beneficial sectors for conflicts:

1. Military industry
2. Gold
3. Small metals
4. Oil and gas
5. Shipping
6. Chemicals
   Will these sectors hit the limit-up in bulk? They might open high and then fall back, as funds have already priced in expectations. Other sectors like shipping and chemicals are also benefiting from specific factors—rising freight rates and Iranian exports, watching for speculative moves. The conflict is clearly negative for tech stocks; tomorrow, watch if GJD (government intervention) steps in. Historically, conflict-benefiting sectors tend to rally for a wave. Also, observe if domestic computing power can withstand pressure and move out; next week is the Two Sessions. One focus is expanding domestic demand; the other is new productive forces, which should be emphasized. Commercial aerospace also has expectations, and military spending may increase. Let’s see the results. March might bring new main themes.

Steady compound interest trading rules:

1. Only take confident opportunities; avoid chasing ununderstood gains.
   Better to stay in cash than gamble on emotions; better to earn little than take big risks.
2. Controlling drawdowns is more important than chasing quick profits.
   A big loss destroys ten small gains; protect principal for compound growth.
3. Reject ultra-short emotional chasing of highs and lows.
   Don’t follow the crowd, don’t impulsively trade, don’t obsess over charts; follow rules for entry and exit, don’t buy or sell based on heartbeat.
4. Position size should match your win rate.
   Small opportunities, small positions; big opportunities, push positions; never over-leverage for a gamble.
5. Strictly follow stop-loss and take-profit rules.
   Cut losses early, let profits run; don’t fantasize, don’t hold onto losing positions, don’t rely on luck.
6. Only profit from trend-following, not from emotions.
   Follow the trend, not news or hype.
7. Ask yourself daily: am I disciplined?
   Don’t ask how much I made today, ask if I traded impulsively; discipline ensures profits come naturally.

Trading only follows one path: steady compound growth, strict control of drawdowns, never chase highs impulsively.
No heartbeat trading, no gambling on emotions—only earn what you understand, can hold, and sleep well with.

This week, the account had four consecutive days of gains—not luck, but the victory of the pattern.
The true ability to survive bull and bear markets isn’t in reckless gains but in fearsome control of drawdowns and execution.

If you support this steady, long-term, risk-controlled, profit-accumulating model, please like, tip, and support!
Your support is my greatest motivation to keep guiding everyone steadily forward and becoming more bullish!

Thanks to everyone for recent tips and encouragement:
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