For a stock investor, one of the essential qualities that must be possessed is patience.

I am accustomed to referring to it as "let the bullet fly for a while."

In translation, it actually means.

When the market forms a certain trend, it is important to understand the need to wait for a period of time, as the trend will not change in the short term.

Many people do not understand this, and it is difficult for them to grasp the big market trends and avoid big pitfalls.

What does "let the bullet fly for a while" mean?

In fact, it refers to not being in a hurry to make investment decisions.

When the stock price rises, do not easily leave the market, because there will be a trend inertia to push the price higher.

Advertisement

When the stock price falls, do not easily lay out, because there will be a trend inertia to push the price lower.

When making money, wait a little longer before selling, and when the price falls, wait a little longer before buying.On the contrary, when losing money, selling should not be hesitated, and when the market is rising, chasing the rise should not be hesitated either.

This statement seems very simple and reasonable, but it is very difficult to operate.

There must be many people who ask, how long should I wait, what should I do if I take the elevator, because we have all experienced the situation of missing the high point by waiting too long.

Therefore, many people do not understand the concept of letting the bullet fly for a while.

Regarding this point, I divide the bullet flying into three stages.

The first stage is the unsheathing of the sharp sword.

For example, when the stock rises, it has just begun to increase in volume, and the first big positive line is pulled up, or the platform is broken through.

This stage is the sign of the rise.

At this stage, it is necessary to buy decisively. The bullet has just left the barrel and has not started to fly. You need to enter the market at the first time.

Of course, many times it will involve a problem, whether it is really shooting or a fake shot, this also needs to be identified.For example, when the stock market falls, a breakout occurs with an increase in volume, and a large bullish candlestick breaks through the support.

This stage is the beginning of the decline.

People who are eager to take over at the beginning of the decline generally do not recognize the situation, and they believe that the current situation is a retest and a good opportunity to buy.

So, there will also be a game here, and usually, a large bearish candlestick with an increase in volume is a clear signal of a breakout.

Under this signal, selling should be decisive, even if it is a stop loss, it should be very fast and not sluggish.

The second stage is acceleration in the air.

The stage that really makes the bullets fly is actually this stage.

That is, the stage of accelerated rise and accelerated fall.

At this stage, patience is needed to hold or wait patiently.

First, let's talk about holding, which is the main wave of the rise.The vast majority of people who make a lot of money do so because they firmly hold onto the main uptrend, which can be said to be seizing the opportunity when the bullet flies.

The range of the bullet is very long, so don't easily think it will stop.

Therefore, the rise of most stocks will have a stage of acceleration in the air, from undervaluation, directly fried to an abnormal high valuation.

The same is true during the decline.

The process of the bullet flying is the process of rapid decline, which is the main downtrend.

When we say not to catch the flying knife, it means not to try to buy the bottom when the stock just starts to decline rapidly.

Similarly, stocks will fall from high valuation to low valuation, and then the so-called extreme valuation will appear.

When the stock is rapidly declining, quietly watch, don't be tempted by the low price, always tell yourself that there will be a lower price.

The third stage, buffering to a stop.

After the bullet hits the target, there are two possibilities.One method is direct penetration, and the other is a slowdown in speed, coming to a halt.

But no matter which one it is, once the target is hit, it will stop, and the same principle applies to stocks.

After a significant increase, stocks will eventually come to a halt.

Either it's a direct penetration at a high position, with a large bearish candlestick coming down.

Or it's a high position consolidation, a buffer, and then it falls down.

This is something that will inevitably happen and a result when the bullet reaches the end of its flight.

The bullet directly penetrating, that is, reaching the top directly at a high position, the main force wants to escape, and there must be a huge amount to take over.

Those large volume bearish candlesticks are the situations where the bullet penetrates and kills in one blow.

There are some stocks where the bullet is finally stuck inside, and the speed of death is very slow.

This is like the main force being unable to quickly unload at a high position, and the result is to grind a top, slowly leaving the market, just like blood, slowly flowing away.The principle is the same for a decline.

There was a time when the "golden needle bottoming" pattern was popular, but in reality, the proportion of such cases is quite low.

The vast majority of stocks will form a bottom structure, with a second bottoming, a retest, and many other forms.

The bottom also needs to be polished for a period of time, as the main force needs to collect the chips at the bottom, which requires a time cycle.

So, there is no need to rush into the bottom, and there is no need to make a large purchase at once, just enter in batches within the bottom area.

Let the bullet fly for a while, which means in stock trading, there is no need to make decisions in a hurry, wait for the "dust to settle" before taking action.

The "dust to settle" here refers to the market sending a trading signal that fits your investment strategy.

We should not make blind trades in the market, because the result of blindness is to be cut like leeks.

The reason is actually very simple.Blind trading is an act of following one's inner self, and behind this inner self lies emotions, which are the market sentiments manipulated by capital.

The essence of "letting the bullet fly for a while" is to allow the market sentiment to be vented.

Continuous rises are the venting of bullish sentiment.

Continuous declines are the venting of bearish sentiment.

A large bearish candle at a high level is the venting of panic sentiment.

A large bullish candle at a low level is the venting of bottom-fishing sentiment.

The market has many ways and reasons to vent its emotions, driving the market rhythm, thereby allowing large capital to make profits by buying low and selling high.

Retail investors are aware of their own weaknesses, but controlling emotions is very difficult to achieve.

Therefore, for retail investors, the golden rule for making money in the stock market is to hold on when the price just starts to rise, and to run fast when it just starts to fall.

Many people may say, I haven't made money, I was shaken out, and running fast means I'm out.The crux of the issue lies in the fact that the loss from being washed out is not significant; it is a grave mistake to be trapped.

The profit model for retail investors must be significant gains + minor losses.

Significant gains are achieved by allowing the "bullet" to fly a bit longer in an upward trend.

Minor losses occur when the downward trend begins, quickly distancing oneself from the "bullet," letting it fly alone, to avoid significant losses.

When positioning, one must understand to let the "bullet" fly a bit longer, then position when it falls.

Alternatively, as soon as the "bullet" is just fired, immediately enter the market to grab shares.

Within a reasonable range, continuously optimize one's own trading, and only by understanding the starting signal can one make money.

Sometimes, waiting also requires courage.

Especially in a bear market, watching with an empty position requires courage, because missing out and being left behind is more painful than being trapped with a full position.

Successful people in the stock market are not only those who understand the principles but also those who strictly adhere to discipline; let us all encourage each other.