Qingming Practical Tips Part 2: Character Determines Success or Failure! Please identify with your own situation.

The market has been pretty bad lately, and with geopolitics on top of that, we can slightly reduce the time spent on reviewing and post more “working content” for everyone.[TaoGuBa]

It’s not easy to write all this. Like first, then watch. Limit-ups keep coming nonstop. Tip and cheer—rich beyond measure!

In stock trading, you must first recognize yourself. Only by recognizing yourself can you talk about trading and about a trading approach. Many people ignore this point. What they want to learn is technique, but they forget their own nature, and then they end up taking many detours.
**Let’s talk about two kinds of approaches that fit the current environment! You must match them to your own personality!
**

First type: buying into strong trends on pullbacks.
Buying into trend stocks on pullbacks is essentially a way of playing that’s slow, steady, patient, not greedy, and not panicked. It’s very picky about personality and mindset.
Suitable for:

  1. People with patience who can hold without chasing daily limit-ups, who can accept “slowly rising and rising nonstop,” who are willing to wait for the trend to play out without frequently switching stocks.
  2. Emotionally stable people who don’t get red-eyed and chase highs when they see big gains, don’t panic-sell on pullbacks, and can buy on pullbacks according to plan.
  3. More rational and highly disciplined people with their own buy, stop-loss, and take-profit rules—trading not based on feelings, and not letting intraday volatility throw them off.
  4. More conservative personalities who hate big drawdowns; compared with “take a chance and turn a bicycle into a motorcycle,” they care more about not losing first, then making small profits, and finally compounding.
  5. Not much time—people who don’t watch the screen all day, like office workers who don’t have time to monitor the market. They don’t need frequent trading and are suitable for pullback-and-hold for swings.
  6. People who know how to “give up opportunities.” Not greedy enough to take everything; they can accept missing a sudden rush, only earn the money they can understand and that fits their model, and don’t get jealous of other people’s windfall profits.

One-sentence summary of buying into trend pullbacks: it’s best suited for people who are patient, calm, disciplined, and seeking stability—not greedy for quick money. If your personality is like this, then over the long term, doing trend pullbacks will make both your win rate and your mindset feel very comfortable.

How trend stocks are played

  1. Get the direction right. Based on industry logic—price increases, catalysts from special events, etc.—make your big-direction selection. Stock price is the early reflection of performance; it’s about expected performance. When performance is revealed, the stock’s valuation is already at expectations. But if performance or industry outlook exceeds expectations, the stock can keep rising; if it meets expectations or falls below, the stock will drop accordingly. So the buy point is before performance is announced, not after.

  2. Pick the core stock. Trend-stock core logic: trend stocks = follow the big direction, don’t guess the top, don’t try to bottom-tick, only do the middle segment—buy on pullbacks during the uptrend, don’t touch during the downtrend, and don’t participate in sideways consolidation.
    Example 1: China Satellite—direction is catalyzed by special events. The commercial aerospace concept explodes. The reason for choosing the core stock is the uniqueness of the satellites.
    Example 2: Damingli, Yaxiang Integration—direction is storage supply shortages and the logic of price increases: one is storage chips, and the other is clean rooms.
    Example 3: FiberHome, Hengtong Optic-Electric—continuous fiber price increases; both are core stocks.

  3. How to tell whether a stock is a trend stock (the simplest standard): if it satisfies 3 conditions, it counts as a trend stock:

  1. The stock price is above the 20-day and 60-day moving averages.
  2. The highs keep making higher highs, and the lows keep making higher lows.
  3. Trading volume increases moderately, not as a blowout spike.
  4. As long as the moving averages turn downward, break, and the center of gravity shifts lower—rule it out directly.
  1. Trend-stock standard playbook: buy on pullback + hold + exit when it breaks
  1. Buy point: Only do “buy on pullback.” Buy near the 5/10/20-day lines on a pullback, buy when support forms at the previous high/platform, buy after a bullish surge day with shrinking volume and then a pullback. Do not chase! No board-picking! No half-way entries!
  2. Holding: Let profits run. Don’t leave as long as the trend isn’t broken. Don’t let small red candles drive you out. You can do some T actively, but don’t frequently T so that you “fly” the shares. The money in trend stocks is meant to be held—not made by doing T trades.
  3. Sell point: Only look at “breaks.” Don’t guess the top. Sell if any of these happens: a valid break below the 20-day line, huge volume and long bearish candles at high levels, a break below the rising trendline, the center of gravity shifting lower for two consecutive days. If it breaks, even if it “flies out” on you, you still sell. Same logic for trend and short-term trades—just that the trend is the 20-day line, while the short-term is the 5-day line.
  4. Position management (very critical)
    Early trend: hold 30%–50% of the position
    Trend confirmation: add up to 50%–70%
    High-level acceleration: cut down to 20%–30%
    Breakout failure: clear out the position directly
    Trend stocks are best done in a separate account, and never keep a single trend stock at full position.
  1. Sectors suitable for trend stocks
    Tracks: new energy, solar, energy storage, lithium batteries
    Growth: pharmaceuticals, CXO, innovative drugs
    Tech: semiconductors, computing power, AI applications
    Big consumer and big finance (when they’re in a trend)
    One sentence: there are earnings, there is logic, and money keeps buying steadily. Timing is very important—every time a trend forms, it happens in cycles. The key is to wait for the wind and then go in. Always do only the main up-move segment. When the wind comes, go in; don’t set up too early to “lie in wait.”

  2. The taboos (the easiest points to lose money when doing trends)

  1. Sell after it rises a little; cut after it falls a little.
  2. When the trend goes bad, still stubbornly hold and average down.
  3. Treat trend stocks like short-term trades and operate frequently.
  4. Chase buys, then get trapped and turn it into a long-term holding.
  5. When it consolidates sideways and you keep buying on pullbacks repeatedly.
  1. The ultra-simple mnemonic version
  1. When price is above the moving averages, don’t look for bearishness; when below the moving averages, don’t go long.
  2. Pullbacks with shrinking volume are buy points; breaks with expanded volume are sell points.
  3. Don’t chase; don’t cut into declines. Be patient and hold to earn swings.

Second type: ultra-short-term (board-picking, half-way entries, next-day arbitrage, quick in and quick out). Doing this versus buying trend pullbacks are completely opposite extremes, and the requirements on personality are extremely strict.
1. People who are suited are naturally suited. People who aren’t suited, forcing it will only make them lose more the more they do it.

  1. Ultra-short-term fits best with people who are extremely decisive—no hesitation, no纠结. Buy points and sell points happen in an instant. If you think for three seconds you’ll already miss; if you hesitate, you’ll lose big.
  2. Emotion is extremely stable—up and down don’t affect mindset. Limit-ups don’t make you drift; limit-downs don’t break you. When you’re wrong, recognize it immediately. No grudges, no revenge trading.
  3. Extremely strong execution: discipline matters more than anything. Set the stop-loss and you must follow it. Never say “wait a little longer” or “it will rebound.”
  4. Fast reaction and quick thinking—able to instantly read the order flow, capital flows, sector linkages, and the emotion cycle.
  5. Not afraid of stimulation; likes fast pace—if they don’t trade for a day they get itchy. Likes a competitive, rhythmic feel; hates slow, grindy rises.
  6. Can accept big wins and big losses. With a big enough heart, ultra-short-term is high volatility: when it wins, it wins hard; when it loses, it quickly retraces. If you can’t handle it, don’t touch it.
  7. Plenty of time—people who can stare at the screen. If you’re an office worker without time to monitor, you basically won’t do well in ultra-short-term.
  8. Fast error correction. Don’t be stubborn—if you buy wrong, don’t hard hold. Don’t go head-to-head with the market, and don’t “date” the stock.

On the flip side, these people are absolutely not suitable for ultra-short-term

  1. Indecisive,纠结 before buying, regret after selling,
  2. Fragile mindset—panic when it drops, get greedy when it rises
  3. Like to stubbornly hold; average down after being trapped
  4. Not enough time to watch the screen
  5. Seek stability—afraid of drawdowns and afraid of stimulation
  6. Easily emotional, easily overwhelmed, and prone to random buys
  7. Always wanting to buy at the lowest and sell at the highest
    One-sentence summary of ultra-short-term = fast,狠, precise, and a stable mindset. Suitable for: decisive, calm, strong execution, likes fast pace, and can accept high volatility.

Second, core principles of ultra-short-term
1. Only trade the strongest—the leading front-row stocks in the strongest sector of the day, the 龙头 with continuous strength. Ultra-short-term only looks at emotion, capital, and leaders. It doesn’t look at earnings, valuation, or long-term logic.
2. You buy today only to sell tomorrow. No overnight nostalgia, no “hold for a bigger plan,” and no attachment to stocks.
3. If you’re wrong, cut immediately—never add to average down. Adding only turns a small loss into a bigger one.
4. Trade only when emotion is good. When emotion is bad, control position size, or even don’t trade. Ultra-short-term profits: 70% comes from the 30% of good行情.

Third, suggestions for buy points
1. Only do three kinds of buy points—buy on pullback amid disagreement in leaders.,(recent cases: Zengsheng Technology, Menouhua, Wanbangde)
**
2. In strong stocks: buy on pullbacks to moving averages / buy when intraday shows acceptance (time/price support).,(recent case: Tongda shares)
3. When a sector explodes: buy half-way entries at the front or board-pick.,(recent case: Menouhua, Huadian Liaoneng)
4. Absolutely do not bottom-fish in a downtrending decline,
5. Absolutely do not follow the back-row followers and random weeds,
6. Absolutely do not buy randomly at the close to gamble on overnight.

Fourth, position control
Good行情: 2–3 stocks in split positions; no single stock over 30%
Normal行情: 1–2 stocks; single stock 10%–20%
Bad行情: control position or go to cash

Fifth, holding discipline (most important for ultra-short-term)

  1. On the buy day, if it doesn’t hit the limit-up, then regardless of strength on the next day, when it rises you must exit. Even if you sell wrong, you still sell.
  2. If it fails the limit-up or weakens on the buy day, then on the next day, if the opening auction or the opening doesn’t show strong action, exit directly. If you sell too early (“sell-fly”), still buy.
  3. After buying, if it opens lower and keeps falling with no support, don’t average down—cut directly.
  4. Limit-up strength lock-in: you can hold as long as it doesn’t break the 5-day line / and doesn’t see huge-volume distribution.
  5. If there’s any hesitation, treat it as a “sell point” across the board.

Sixth, the iron rule for sell points (key to ultra-short-term win rate) This requires training over many years.

  1. High open then can’t sustain the rally → leave immediately.
  2. Flat open / low open with no acceptance → exit within 3 minutes in the auction or at the open.
  3. Limit-up sealing gets weaker and it repeatedly fails the board →撤.
  4. Sector tide retreats; the leader drops hard → clear the position across the board.
  5. If profit is 3%+ you can exit anytime—don’t be greedy for the last bite.
    You can see in the comments section that many of my trades are “sell-fly,” but this discipline lets me exit most stocks profitably. Losing trades can be cut to much smaller losses. If you handle them in time, you can reduce losses a lot. Profit and loss share the same source. Sell points require long-term training—the core point is that even when it “sells-fly,” you still must sell.

Seventh, taboos (lose money every time you hit one)
1. After being trapped, add to the position and do T—deeper and deeper.
2. Buy a bunch of follower junk stocks; you don’t dare to buy the leaders.
3. Don’t sell when making money; hold to the death when losing money.
4. When emotion is bad, keep making trades frequently.
5. Go all-in on one stock (except for naturally gifted players).
6. Randomly decide to buy during intraday.

Eighth, ultra-short-term ultra-simple mnemonic
Only do the strongest, never the weak. Only do next-day trades, never long holds.
When it spikes up, run without negotiating the holding. If you’re wrong, cut—don’t average down.
When emotion is good, do more; when emotion is bad, keep your hands off.

Brothers who want to make progress: swap sesame for watermelon!! 100 points or add oil (cheer)! You need long-term persistence. You want answers, I need data—support each other. Thanks!!!!

It’s not easy to write all this. Brothers, like, tip, comment, cheer,催播, and thank you. I don’t have theories here—only practical execution.

The stock sea has company; we set sail far and wide

Respect the market, follow the market
Focus on the main theme, watch the core
Don’t rejoice at gains, don’t grieve over declines
With a river of three thousand waters, grab just one cup
Plan your trades, align knowledge with action
Always remember: steady profits

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