[Red Envelope] The leader has already taken the first move this week!

Introduction [Taogu Ba]

Trend Is the true friend But in actual trading Many people Always love to Trade against the trend When falling, they want to buy the dip Thinking it’s enough to fall before rebounding — Often buying halfway up the hill When rising, they want to guess the top Afraid of profits giving back and leaving early — Miss out on big market moves

You’re not fighting the price But the entire market force Only following the trend can take you far In this market Stubbornly going against the trend Is the beginning of account shrinkage A systematic approach to following the trend Is the confidence to survive bull and bear markets

1. Market Review:

Friday’s main trades (only tracking key transactions):

1. Huasheng Tiancheng: Entered at auction, gained 6% that day. Entry logic: Domestic computing power news last night boosted its popularity to number one, combined with the sharp decline in US tech stocks last night. At open, Huawei Ascend’s Taijia large order led the market with a straight-up move, setting the direction. Today, Huasheng opened flat and still has the potential for a rebound to new highs, despite a pullback after breaking the board.

2. Runtu Co.: In the first 20 minutes of the morning, the recovery was less than expected, exited with about a 2% loss.

3. Runze Technology: In the pattern, not reducing positions, with an unrealized profit of nearly 19%.

Looking back at the morning tips, the brothers who followed along:

2. Friday’s Key Insights: “The Underlying Secret of Profits”

What truly enables you to consistently profit is a strict trading discipline. In the ever-changing trading market, countless traders spend their lives studying technical indicators, chasing market news, and seeking black horse stocks, yet they always struggle within cycles of profit and loss. They obsess over shortcuts to overnight riches but overlook the core essence of trading — profit is never about precise predictions, but about ironclad trading discipline. Technical analysis determines your profit ceiling, while discipline determines how far and how long you can survive in the market. These five trading rules are the fundamental codes for navigating bull and bear markets and maintaining stable profits, more important than any complex technique.

(1) Strict Stop-Loss: Protect the principal to qualify for profit

Stop-loss is the first lifeline of trading and the last line of defense for protecting capital. The market is always uncertain; even the most precise analysis can be wrong, and even seasoned traders face losses. Many losses stem not from misjudgment but from overconfidence and reluctance to cut losses, allowing small losses to turn into deep traps, ultimately consuming all capital.

Mature traders set clear stop-loss points from the moment they enter, controlling risk within acceptable limits. They do not fight the market nor hope for reversals; they strictly follow stop-loss rules. Small single losses are not scary; what’s dangerous is blindly holding on without stop-loss awareness. Remember: as long as the green mountains remain, there’s firewood to burn. Protecting the principal is the foundation for continuous trading and waiting for profits.

(2) Control Position Risk: Avoid full positions, stability is the long-term way

Full position trading is a taboo in the market and a reflection of greed and impatience. Many traders seek quick profits, putting all their funds into a single stock, seemingly maximizing gains but actually maximizing risk. When the market reverses, not only do profits evaporate, but the principal can also suffer heavy losses, even losing the chance to recover.

Controlling position size is the most direct and effective way to reduce risk. Reasonably allocate funds, diversify, and adjust positions according to market conditions. Avoid over-concentration in a single stock. Use small positions to test waters and stagger entries, which can withstand market volatility and respond calmly when the trend becomes clear. Trading is not a sprint but a marathon; steady progress beats reckless rushing.

(3) Abandon Emotional Trading: Rationality rules, don’t be swayed by mood

Market fluctuations are the easiest to stir emotions. When profitable, traders become overjoyed and overconfident, chasing highs and adding positions; when losing, they panic and cut losses impulsively. Emotional trading is the trader’s greatest enemy, causing you to abandon analysis and plans, led by mood, resulting in wrong decisions.

Top traders are masters of their emotions, not slaves. They prepare detailed trading plans in advance, with clear rules for entry, stop-loss, and take-profit. Regardless of market swings, they follow their plans strictly. They don’t let short-term ups and downs affect their mindset, nor do they follow market sentiment impulsively. They stay calm and rational. The market only respects rules, not emotions. Avoid impulsiveness, maintain rationality, and you can avoid many pitfalls.

(4) Know When to Stop: Mastering take-profit and contentment leads to consistent wins

Greed is a stumbling block on the trading path. Many don’t lack profitability but fail to take profits, always chasing maximum gains, wanting more even after profits are realized. When the trend reverses, profits turn into losses, or even losses surpass gains. Some enter blindly and trade frequently in uncertain markets, trying to catch every opportunity, but end up losing more.

True trading wisdom is knowing when to cut losses and take profits. When reaching your profit target, exit decisively; don’t cling to the last bit of the trend. When the market trend is unclear, wait patiently for the right moment. Don’t chase, don’t overtrade. Only trade what you understand and within your capacity. Learning to stop is maturity; being content ensures stable profits.

The detailed analysis of Friday’s market will be in Sunday’s article. If you have questions, leave comments!

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