The ubiquitous conspiracy in the stock market.

Whether it's an open strategy or a covert one, they are both fully displayed in the stock market.

The so-called conspiracy, for example, when the index soars in the short term, with a lot of noise and fanfare, is actually a lure to make you take over the position.

This situation is called a conspiracy.

Most of the time, what we can't see is the conspiracy.

For example, washing the plate is a conspiracy, whether it's at a high position or a low position, it is to deceive retail investors to hand over the chips.

Many people think that the conspiracy is very terrible, and they will fall into the pit if they are not careful, but in fact, the open strategy is even more terrible.

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The open strategy in the stock market is to tell you that it will fall, but you are reluctant to sell.

Tell you that it will rise in the future, but you can't hold on and cut the meat on the floor.

Open strategy is everywhere in the market, even if retail investors see through it, they can't avoid it.

Today, let's take stock of the ubiquitous classic open strategies in the stock market.Strategic Transparency 1: Blind Stop-Loss Amid Panic

In early January, when the index successively broke through 2800 and 2700, the market's strategic transparency emerged.

We all know that the more the index falls, the safer the market actually becomes, because the valuations are getting lower and lower.

We also know that below 3000 points are opportunities, let alone at 2700 and 2600.

The decline at this point is clearly the market's strategic transparency, and it is a well-known strategic transparency to all.

So the question arises, why are there still many people cutting their losses at this point.

Because the market creates panic, creates emotions, and creates this strategic transparency.

The market tells you, I want to dig a pit, I want to get the bottom of the chips, I want to get the panic chips, but you still can't stop the panic emotions and choose to cut the bottom.

When people are in a panic, it is very easy to blindly stop loss, because there is no hope to see.

When the numbers in the account are getting less every day, you naturally want to quickly end this pain and let the loss pause.Such behavior can only be described with four words: exactly what one wanted to hear.

Panic is inevitable, but trading itself should follow principles, not emotions.

Otherwise, one will always make wrong decisions under the conspiracy, and every time one cuts losses, it's on the floor.

Conspiracy 2: Bottom washing after digging a pit.

There is a kind of pit digging, which is that you clearly know it is digging a pit, but you don't know what to do.

A stock has already been at a very low position, and then suddenly it plummets.

Everyone knows that this is the main force's temptation to sell short, this is the bottom of the pit, but it is extremely painful.

Because, since the main force has chosen to dig a pit, it must want the chips at the bottom, and this bottom will definitely have a cycle.

This cycle is the root of the pain for the retail investors.

Usually, the bottom cycle is short for 2-3 months, and long for half a year.Otherwise, there simply isn't enough time to get the chips into your hands.

To put it bluntly, this is a long process of bottom-washing and collecting chips, which is clearly told to you.

But to have you lock your funds and accompany it through such a long period, you feel it's not worth it, and it's extremely uncomfortable.

The most fatal thing is that if you choose to give up the chips and leave this so-called golden pit, you may leave the bottom and the pit in a few days when you are not paying attention.

At this time, your funds are often on other stocks, and it's too late to make up for it.

Therefore, even if retail investors know the intentions of the main force, they will feel extremely uncomfortable with this kind of pit-digging conspiracy.

Those with good patience, wait a bit, may still have the opportunity to turn over, those with poor patience, a pit down, still cut the flesh at the bottom.

The best way is not to participate in this kind of bottom pit-digging stocks, and leave immediately when the position is broken.

Conspiracy 3, high-position temptation in the bubble.

There is another conspiracy, called high-position temptation, and it is temptation in the bubble.For example, when the index continues to rise and reaches 5,000 points, it is a lure in the bubble.

For instance, a Moutai with a price-to-earnings ratio of 70 times is a lure at a high position.

The stock has already risen far beyond its value, but there will still be a large number of retail investors who want to enter the market to gamble.

Gambling in the bubble is actually very common, some demon stocks, some leaders, and in the end, they are all speculative bubbles.

Lure at a high position is actually very easy to judge.

The trading volume is very large, and the main force is also in the process of pulling up and withdrawing at the same time.

It's just that pulling up and withdrawing at the same time is also an increase, and it can also make money, and the temptation is very great.

Speculation in the bubble is very exciting and makes many people dopamine surge.

Lure at a high position, this conspiracy is understandable by everyone, but most people, knowing it, want to share a cup of the soup.

It's not that you can't chase the rise at a high position, but you must be prepared to stop loss. Once the situation changes, you have to leave in a hurry.Strategic Maneuver 4: Chasing Gains and Panic Selling in Volatility.

There is another strategic maneuver known as chasing gains and panic selling. We all understand that selling high and buying low can make money, while chasing gains and panic selling leads to losses. However, the reality shows that chasing gains and panic selling is an unstoppable behavior.

Retail investors always believe in one thing: what they see is what is real. Therefore, only when the price starts to rise, only when a medium-length bullish candle appears, and only when the stock hits the upper limit, will retail investors consider it good. When the market adjusts, retail investors will think it has gone bad.

Chasing gains and panic selling is, on the one hand, a manifestation of human nature, and on the other hand, it is the belief that what is seen is good and right. There are many ways to address the issue of chasing gains and panic selling, but essentially, the problem of the trading model must be resolved.Pursuing the rise in stock prices is driven by the observation of an uptrend, which seems like an opportunity has arrived. However, one must consider a question: why was there no opportunity before the rise?

The rise in stock prices is merely a signal indicated by a bullish candlestick, not the essence. The essence lies in the accumulation of sufficient shares, where the main force is ready to lift the prices to make profits, rather than scrambling for shares only when the lift occurs. This cannot be reversed.

The lifting you see is always after the accumulation of sufficient shares. If the thoughts among retail investors are very consistent, then there will be a considerable amount of funds following the trend to buy, making it easy for the main force to take advantage of the situation to sell.

In a volatile market, the main force can manipulate emotions, causing retail investors to chase rises and cut losses, directly harvesting profits from the "chopsticks" (a metaphor for retail investors).

This kind of open scheme is the most genuine reflection of emotions and human nature. Even if you have seen through it, it is difficult to resist the control of emotions.

It is not that the main force is calculating against retail investors, but human nature determines that open schemes are more effective and easier to use than conspiracies.

Many principles are clear and explicit, but the reason why open schemes are so ruthless is that even if you know them, you cannot change much.

Human nature itself is also like this.The real money in the market is made through open strategies, not conspiracies.

In the future market, the proportion of funds from major institutions will be increasingly high, conspiracies will become fewer, and open strategies will become more common.

To avoid open strategies, the key is to see through the trends and the intentions of the main forces.

If these are understood, the countermeasures to open strategies will not be complicated, and they can help everyone make money.

The stock market is not complicated, many things have similarities with the military strategies of the past.

Once you understand human nature thoroughly, you naturally understand the stock market.

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