Hexun Investment Advisor Xu Ronggui: Real Stock Trading Masters Focus on One Stock for a Year

If I told you that focusing on just one stock for a year and repeatedly doing T (trading) can yield higher returns than those chasing hot stocks every day, would you believe it?

Many people get trapped not because of bad luck, but because they don’t know how to do T. Remember this: the only skill retail investors can actively master is doing T. If you don’t know how to do T, you’re just waiting to be unlocked; if you do, you can gradually lower your costs.

So, what is T? Simply put, it’s this: keep half of your position unchanged, and use the other half to buy low and sell high repeatedly to profit from the spread. It’s like running a business—buy low, sell high. One buy and one sell, and your costs are spread out. There are two types of T: during an uptrend, buy low and sell high; during a downtrend, sell high and buy low. The core idea is four words: reduce costs. As long as your costs go down, you’ll be invincible in the stock market.

Why focus on just one stock for a year? Because familiarity breeds mastery. By watching it every day, understanding its rhythm and temperament, you’ll be able to anticipate its moves. Instead of chasing this stock today and that stock tomorrow, ending up holding high positions at the top, you’ll develop a deep understanding. True experts aren’t those who switch stocks daily, but those who repeatedly refine and master one stock.

Now, let’s get to the core tips for intraday T. Open the intraday chart: the yellow line is the average price, the red line is the stock price. Just watch the distance between these two lines.

First: Observe at 5 points high, wait and see; don’t force it above 6 points. When the stock price rises more than 5%, especially during rapid surges, don’t act impulsively—it’s likely to hit the daily limit. If the increase exceeds 6%, avoid doing T that day; it’s better to earn less than make mistakes.

Second: When the red and yellow lines are within three points, stay still; churning sideways can lead to losses. If the gap is less than 3%, there’s no room for action—buying and selling won’t even cover transaction fees. Wait for small fluctuations to settle before taking action.

Third: Revisit the average line after a pullback before acting. Don’t rush to buy after selling, or sell after buying. Wait until the price pulls back near the yellow line before making a move. Relying on intuition will eventually lead to losses; discipline is key to survival.

Fourth: When red and yellow lines are separated by three points or more, and the price deviates by over 5%, profit opportunities arise. When the price is more than 5% above the average, it will likely pull back; when it drops more than 5%, it may rebound. Sell when it exceeds 5% upward, buy back on a pullback to the yellow line; buy when it drops 5%, and sell again on a rebound. The spread in between is your steady profit.

In summary, intraday T boils down to: watch the distance, wait for the correction, and stick to discipline.

It may sound simple now, but I tell you: if you focus on just one stock for a year, doing steady T every day, what will happen after a year? Many will suddenly realize that the stock hasn’t even risen much, but they are already making money, with costs approaching zero. At that moment, you’ll understand that in the stock market, the real profit isn’t from the trend, but from the rhythm.

(Edited by: Zhang Yan)

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