Review-1008

Profit and Loss: Currently 8% floating loss, mood has stabilized.

Reasons:

1. Yesterday, there was no knee-jerk reaction or independent thinking towards overly consistent expectations, just following the crowd, not thinking contrarily, being swayed by emotions, adding too much to the position, greed, speculation, wanting to make a fortune overnight, dreaming of financial freedom.
2. Made the mistake of predicting the market.
3. Did not quantify the market's rise, lacked a precise sense of how much it had risen, and did not calculate or judge how much further it could rise.
4. Operated too frequently, catching falling knives.
5. When the position was heavy, lacked tools to hedge risks, judged YANG would rise, greedily read others' comments saying to wait until tonight's extreme to buy.
6. Brainwashed by overwhelming bullish media information.
7. Blinded by recent profits, confidence inflated, mistaking luck for skill.

Policy:

1. The country plans to introduce more, faster, and more practical policies.
2. Japan raises interest rates.
3. The U.S. reduces the extent of rate cuts but remains in a rate-cutting channel.
4. Non-farm payrolls suspected of being fabricated.

Trend:

1. Overall trading activity is completely different from before the policy, the market is activated, A-share trading targets have increased, trading volume hits new highs.
2. Sectors will diverge.

Value:

1. Listed companies have not changed from yesterday to today.
2. A-shares have many junk companies, but large-cap blue-chip stocks remain core assets.
3. Most China concept stocks are still good companies, undervalued.
4. Long-term value depends on fundamentals.

Price

1. Sharp drop, roughly judged to have returned to the valuation repair completion level, locally undervalued.

Risk:

1. -Hong Kong stocks strongly controlled by foreign capital.
2. -Underlying assets have inherent leverage, high volatility, no liquidation risk but reverse split risk.
3. -Bought a few options, don’t understand, just playing around.
4. -Stimulus fails, no improvement in economic fundamentals.
5. -Pressure to break even after a sharp drop, short-term trend may change.
6. -Lack of knowledge and information compared to institutional traders.
7. + Short-term sharp drop releases risk, making room for a rebound.
8. + A-share valuations are generally moderate.
9. + Reverse game funds brought by the sharp drop.

Emotion:

1. -Heavy blow, some forced liquidation, pessimistic sentiment and behavior spreading, group pressure rising, continued decline may lead to more panic, short-term trend may reverse.
2. -Short-term large drop, significant market sentiment impact, Hong Kong stock trading caution rises, risk appetite declines.

Short-term Profit Sources:

1. Gaming, passing the parcel.
2. PE valuation repair.

Judgment:

1. +A-shares will still see new forces entering tomorrow. Rise, extent depends.
2. Hong Kong stocks may drop then rebound, volatility remains high, market starts PTSD.

Action:

1. Read, focus on personal goals, reduce information noise intake, lower information overload.
2. Bullish: Be greedy when others are fearful, be fearful when others are greedy, sell high like dirt, buy low like pearls, do unilateral trades, don’t short, don’t try to make all the money, capability and energy don’t match.
3. Stay patient, the stock market is always there, opportunities always exist, ups and downs are constant! Remember to buy good, buy cheap, market pricing is always wrong sometimes, only buying right can keep you invincible.
4. Hold positions for rebound, no more adding.
5. Set stop-loss lines and submit orders.
6. Try to find risk hedging tools, or manage positions, underlying assets, systematically control risks.
7. Stay optimistic, eat, drink, have fun, sleep well, divert attention, pay less attention to the market.

Disclaimer: Stock market novice, just personal review, no advice, very welcome guidance

$Direxion FTSE China Bull 3X(YINN.US) $Direxion FTSE China Bear 3X(YANG.US) $Direxion CSI 300 China(CHAU.US) $Direxion Daily TSLA Bull 2X Shares(TSLL.US)