[Red Envelope] "Practical Tips" Vita's Big Picture Perspective: Understanding Market Trends, How to Capture Market Core, and Eliminate Ineffective Trades!

In a month, my fans in Laotao County have finally surpassed ten thousand. Thank you very much for everyone’s strong support![淘股吧]
Vita is a professional ultra-short trader who has been in the market for six years. Upholding the techniques of Longkonglong, he only trades core stocks in the market, heavily investing to achieve excess profits in the short term, and persistently shares real-time updates every day, earning praise from many fans!
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In the future, Vita will not forget his original intention and will strive to be a guiding light for all the members of the ice powder group in their short-term trading journey! Like-minded friends are also welcome to follow!**
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Regarding the mindset:
The essence of short-term trading lies in patiently waiting. In the market, real opportunities are rare. Most experts rely on patience to wait for that ten percent success rate moment, without rushing to act. Because they understand that the market is always there, and opportunities are endless. The steady growth of an account does not rely on reckless surges, but rather on the combination of time, compounding, capital management, and self-discipline.
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In the worldview of short-term trading, true wisdom does not come from anxiety over temporary capital shortages. They know that capital is the result of trading, not the starting capital.**
A person who truly understands the essence of short-term trading will, even with limited funds, gradually accumulate wealth through wisdom and patience, like rolling a snowball. They are not eager for quick success and will not impulsively borrow to enter the market, as the desire for quick profits is the biggest trap in short-term trading.
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The road of short-term trading is long; there is no need to rush or hurry. As long as one moves steadily forward, the endpoint of profit will surely be reached. This is a journey that requires patience and self-discipline, and every successful big player proves that steady progress is the ultimate truth of short-term trading!**
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Getting to the point:
Today, I will share how to view market sentiment. The main purpose is to help all fans better understand the current position of market speculation based on the analyzed stages of the market, and then grasp the profit effects of individual stocks. This post will only discuss the overall situation, understanding the cycles, and accurately capturing the core!
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There are only two emotional states in the cycles of short-term trading:
1. The starting point of a downtrend exhaustion.
The first point of emotion here ultimately needs to be anchored to the overall market, including the sentiment and price of leading stocks, which must precede the overall market.
2. The ending point of an uptrend exhaustion.
The second point of emotion here ultimately anchors to the sentiment of thematic leading stocks, where the loss effect amplifies, and it begins to hit the daily limit down.
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1. The starting point of a downtrend exhaustion
Downtrend exhaustion, as the name suggests, means that it can’t fall anymore. But how do we know in practical operations that it can’t fall anymore? We must pay attention to time nodes and predict the market’s recovery. In fact, it’s a very simple matter, as the underlying logic is that what rises must fall, and what falls must rise. However, when it has fallen a lot, we need to understand when it can start rising again. Smart funds usually predict this in advance; this part of the capital belongs to those who dominate market behavior. Most retail investors cannot dominate the market, so we only need to wait for the true exhaustion starting point and then focus on the market signals. This is also the summary of daily reviews, understanding when the decline stops and when the market begins. Those who watch the daily reviews generally understand.
(1) Overall market stop-loss signal
Regarding the overall market stop-loss signal, there are several rounds of downtrend cycles every year. To observe the stop-loss signals, we need to look at the strength of the recovery. After a short-term ice point appears, or if there are consecutive ice points, what the market signal is on the second day and the third day, pulling out a small positive line for recovery may indicate a continuation of the downtrend. Only if two small positive lines are drawn can it be considered a true recovery, or a combination of multiple upward trends. Note that the trend must be upward, not downward; this is what we commonly refer to as the market has stopped falling.

Returning to the market, this round is the stop-loss on March 24, which pulled out two positive lines. The new direction of resonance emphasized daily is innovative drugs. For example, on Wednesday evening, I already selected the core to operate, such as Meinouhua, which also advanced to the fourth board on Friday. This was inferred from the stop-loss signal of the overall market to determine the strongest core of the new direction.

Similarly, the recent main rise in the power sector was also due to the sharp drop on February 13 before the holiday, followed by a market recovery after the holiday, continuing the direction of resonance, such as YN Holdings.

Going further back, for example, on November 24, the overall market stopped falling, and multiple upward trend K-lines were combined; the strongest direction opened at the same time was commercial aerospace, and I believe everyone has reviewed Aerospace Development.

Continuing to push back, on October 20, after the overall market stopped falling, the Strait cycle began, followed by successful stocks such as Pingtan Development and HeFu China.

From the above three examples, everyone can somewhat feel that the market starts a cycle only after an extreme drop and a stop-loss can initiate a main rise. The sentiment tells the market that this position can’t fall anymore and is about to start an upward channel. Once the market begins to gradually recover, capital can easily initiate a new cycle of speculation.

(2) Leading stocks’ prices ahead of the market
From this perspective, we need to look at which core stocks are resistant during the decline. During last week’s weekend review, I discussed the aesthetics of leading stocks in the era of quantification. One very important statement is that they must climb out of the pile of dead bodies. That is, during the overall market decline, such stocks are often not killed, and very likely during the overall market decline, they push out extreme strength, or during the overall market decline, they still achieve consecutive boards, or even hit the daily limit. Once the market warms up, they lead the sector to initiate a main rise.
For example, YN Holdings, activated on February 11, while the overall market dropped on February 13, still advanced with a daily limit. After the holiday, it broke through the pressure and initiated the main rise in the power sector.

On March 16, the overall market reversed downward and began a downtrend cycle. Huadian Liaoning hit the daily limit, and at that time was also the point when YN Holdings was retreating. I emphasized that this was the second wave of leading stocks, which ultimately formed the second wave of leading stocks, perfectly validating my prediction!

Going further back, every phase of leading stocks seems to be like this; the emotions of leading stocks must lead the market and lead the overall market. True leading stocks transition from a downtrend cycle to an uptrend cycle; this is the real transition. The previous leading stocks, whether Aerospace Development or Pingtan and HeFu, are no exception; true leading stocks cannot be killed.

2. The ending point of an uptrend exhaustion
As the name suggests, it means it can’t rise anymore, and the main rise has come to an end. It is quite evident that previous leading stocks hit the daily limit. If the thematic imagination space is relatively large and the capacity is also quite sufficient, then the daily limit of leading stocks does not necessarily indicate the end of the scenario. Just like the previous commercial aerospace, including the current YN Holdings, if the thematic capacity is large enough and the imagination space is very broad, the daily limit of leading stocks often has a second wave. If market sentiment supports it, there may even be a third wave. However, the ending signal remains unchanged; the second and third waves are all market expectations. What we need to judge in real-time is whether the leading stocks have been pressed to hit the daily limit, including whether subsequent second and third waves of leading stocks also hit the daily limit in batches. If this signal appears, we can basically judge that the market has ended. During this time, experts usually rest, while some experts choose to switch to a new direction. When one whale falls, everything is born; I believe this is not difficult to understand.
(1) The anchoring point of thematic leading stocks
In the short-term cycle of this round of speculation, when YN Holdings hits the daily limit, the next day Huadian Liaoning hits the daily limit; this is essentially a performance of continued speculation. The market here believes that the speculation has not ended, but considering the market environment factors, while the loss effect amplifies, experts still need to be cautious and cannot subjectively judge whether there will be a second wave. They can only wait for the stop-loss signals. If a second wave appears later, with the first and second waves of leading stocks both showing daily limit trends, then at this point, one cannot judge the third wave’s signal; it is more about considering whether the market has reached an endpoint.

Looking back at previous speculation cycles, in the stage of old and new transitions, such as on November 21, while the market was dropping, it also represented the end of the Strait cycle. At the same time, Pingtan Development hit consecutive daily limits, while the new cycle belongs to commercial aerospace, which is what was emphasized earlier; when one whale falls, everything is born.

Overview:
The overall view is a feeling; perhaps sometimes it is not clear, but try to let yourself stand at a higher vantage point to view the entire market. Once understood, the benefits will be endless. The overall view falls within the realm of “Tao,” so strive to cultivate your ability to view the market from a higher perspective.
The overall view is a combination of factors; only participate in operations where opportunities outweigh risks. When policies, capital, technology, information, and other aspects are favorable, it is the time to heavily invest to seek profits, repeating the process of compounding.
We are followers of the market. Short-term investors must always pay attention to market dynamics, and their interpretations of information must have their own judgments. This judgment does not come from reading but from the accumulation of daily summaries, which is what we commonly refer to as the overall view.
Information announcements, like technology, are one of the factors in decision-making. If your understanding of the market is not deep enough, merely studying these is futile. The overall view integrates the policy aspect, emotional aspect, technical aspect, capital aspect, and fundamental aspect, complementing each other!
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Conclusion:
Grasping the cycle is essentially a game of opening positions and profit-loss ratios.
Will this trade allow you to achieve profits, and how much profit is there? If there are losses, how much loss is there? This calculation needs to be made accurately. When the market is in a downtrend exhaustion, think more about which stocks are unavoidable at this moment, and this is one of the stocks that must be considered in short-term trading. Just like on March 20, when I shared Huadian Liaoning, which fell for six out of seven trading days. If the market is to recover next week, which stock is clearly unavoidable today? Only Huadian Liaoning, so at this position, I dared to enter the market during extreme panic, and ultimately it successfully became the market leader. Short-term trading is never about gaining profits through frequent operations and chasing highs and lows, nor is it simply gambling on the direction of the market’s rise and fall. Instead, it is about precisely grasping the market cycle nodes by calculating the profit-loss ratio before each opening position, constructing a stable and profitable trading framework. Many short-term traders fall into the quagmire of losses, not because they cannot understand the market direction, but because they mistakenly treat cyclical fluctuations as trends, ignoring the core metric of profit-loss ratio, ultimately exhausting their capital in small gains and big losses. To excel in short-term trading, one must first see through the underlying logic of cycles and profit-loss ratios, turning every trade into a high-probability, high-profit-loss ratio certainty game!
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I hope that friends who recognize me can like and support me more, boosting the review posts to make the article data look good, attracting more fans to pay attention. This is my motivation to continue updating! It is also my motivation to share real trading! After reaching 10,000 fans, I will apply for a live stream. Here, from a god’s perspective, one can gain insight into the rules of short-term trading, and anyone can become a short-term trading expert!
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Also, thanks to the friends who cheer for me!
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Vita ice powder group slogan: (1) Heavy positions, core, certainty!
(2) Stable yet thrilling!
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Welcome everyone passing by to follow!