Practical tips on how to survive in this hellish market!

The recent market difficulty is extremely high. To survive in this market, you need a big heart. A good mindset is the start of everything—no rushing, no impatience. Step out of the board as an outsider and look at the A-shares trend. Recently, the reasons behind the bright spots have led to a relentless squeeze on retail investors’ survival space: [TaoGuba]
First, the Middle East conflict has affected global financial markets, which is an unavoidable force majeure.
Second, domestic quantitative trading has run rampant, causing individual stock price action to swing wildly every day.
Third, market liquidity (trading volume) is getting smaller and smaller, so there’s not much room to operate—concentrated-position games, a bloody slaughter.

Like first, then watch! Guaranteed to make a fortune! Tips and encouragement—may your account enjoy a long bull run!

Right now, the survival rule for “Big A” is to seek change!
In this market, many people are still sticking to the old playbook. It’s not that the old playbook has completely stopped working—it’s that the old playbook is now widely known by most people. When too many people know something, it loses its original value. In the stock market, it’s always a small number of people who make money. Why? Because the methods for making money are constantly changing. As traders, we also have to seek change. Cursing the market doesn’t help—you can’t change any outcome. Unless you leave this market. If you still want to keep going, you have to keep pace with this era. Why do so many pool-liquidity “hot money” bigwigs post that they can’t play anymore and have surrendered, while in the market there are still people who can achieve steady profitability? Because some people studied everything, then forgot everything. They don’t cling to convention. Previously accumulated experience becomes techniques, and techniques can be integrated to finally reach the “Dao.” But this “Dao” isn’t set in stone. Each generation has its own legends. Like before there was the board-picking “banker” strategy—when you could play boards, you thrived. But now, professional board-pickers get hunted extremely hard!
I rarely tell everyone which one is the leader and which one is the secondary runner-up (“catch-up after the main”). Many people like to argue over meaningless things. Everyone has their own opinions, and there are also plenty of people who simply echo others. In my comments section, I take a rational view of the market, not overly subjective. Every move follows the market’s changes, and viewpoints change with the market. Sometimes, the things you overly insist on are often the source of big losses.
Case one: Huaneng Liaoning (华电辽能). We did this stock in the middle stretch and held it for 26 periods. Later, it reached 8 boards, but we never participated again. However, many friends kept participating all the way until now, always believing there would be a second wave. That is wishful thinking. My thinking is: after the first wave, I don’t mainly watch for a second wave. If a second wave really comes, you just follow right up. It’s that simple. But many people don’t understand—it leads them to keep forecasting the bottom too early. The earlier they do it, the more they lose. The 5-day, 10-day, and 13-day lines kept breaking one after another. Even if there’s a rebound here, it only goes back to the 20-day line to catch it. So you should never fight against the trend. Every stock stabilizing has a process—it’s just that with quant trading now, this process is intensified.

Case two: YuNeng Holdings (豫能控股)

As a former leader, YuNeng Holdings’ first wave pulled back and stabilized at the 20-day line. It formed a double-top, then kept sliding down. It broke below the 5-day, 10-day, and 20-day lines, and it is now heading toward the 60-day line. And it has also broken below the prior pullback low. What does that represent? It means the sector is no longer working. I said a long time ago: when YuNeng started the second-wave surge, I wrote every morning in the premarket. If YuNeng is strong, then power is strong. As long as the bottom of power keeps allowing arbitrage, it’s because YuNeng is holding steady right here. And when YuNeng can’t hold steady, that’s when power ends. When we were trading the power cycle, I wrote this every day. But when YuNeng weakened, many people were still messing around in power.

Case three: Liaoning Energy (辽能能源)

The leader wasn’t working anymore. A lot of people went looking for secondary moves (“catch-ups”), but they never made money from the leader, and the catch-ups ended up killing them. The leader was still on the 13-day line, and the secondary runner-up would definitely reach the 60-day line. Many people were only getting in after it hit 3 boards. If you wanted to do this stock at 4 boards, you ended up bleeding all the way. When everyone knows it’s a secondary runner-up, that’s basically “the obvious board” (“mingpai”). “Mingpai” can only be used to play a bet on the leader. Secondary runner-ups can’t be played as “mingpai”—see light and you die (“mingguang si”).

Power is a concept sector pushed up by the combined force of quant traders and retail “hot money,” so the tide-out (“retreat phase”) is pretty brutal. Since everyone knows the sector’s capital content, you should also understand that exiting a bit earlier is the hard truth. Don’t go eat that last mouthful! A sector with active funds is one with a strong money-making effect. But when the money-making effect keeps getting amplified, the loss-making effect will be just as huge. Like tides— the bigger the breaking waves, the faster they recede. That’s short-term board trading’s game! You only need to participate in the main up-leg.

The market’s second battleground! Institutional trend. The earlier sector representatives were storage and gas turbines. Now the sector representative is fiber optics.
Stock examples: Changfei Optics and Fibers (长飞光纤)
Old fans should know this: Changfei Optics and Fibers started telling everyone about it when it was around 100, and now it’s already above 300+. The frequency of these articles is quite high. Basically, most months you’ll see articles about it. In those articles, the portion about fiber optics is the heaviest. And the playbook is also what I’ve told everyone: mainly high-sell and low-buy around the 5-day line. For the stocks pushed by institutions, there’s a chance every day to pull back to the 5-day line to trade. Every day you can capture price spreads. It’s also fine if you don’t move. The market’s attention always goes to the hottest direction. When institutions hold a group, in short-term markets it won’t always be the most eye-catching at the very moment, but when the market environment is bad, it stands out. So I suggest you operate with two accounts: one account is for medium-term positions, and the other is for short-term arbitrage.

The news that fiber optics prices would rise was already there two months ago. Back then, it was said that there are two names: Changfei and Hengtong. If you flip the articles forward, you can see it. As for short-term trading, we also participated in Farsun (法尔胜), Hangdian (杭电), Tongding (通鼎)—all involving entering and exiting. Now, when the market is hyping the most, when this news starts to erupt—that’s when it’s most dangerous.
Just like Dimmingli (德明利) in storage.

In the early wave of a big rally, the early birds already knew the earnings would explode and laid out positions in advance. The early run-up already priced in the earnings. And when everyone knows, that’s when they’re selling to you. On that day, someone in the comment section even wanted to do it. I said: the stock price had already reacted to this news in the early stage. What comes next is distribution of shares to the market.

Never go catch the last baton. Once everyone knows something, it’s basically about to end. Like China Satellite (中国卫星) earlier—when others didn’t know, we positioned a month in advance. And the last two boards were also taken. We only took part of the “fish body” though. So right now, with Changfei, you just watch when it explodes in volume. When it explodes in volume, that’s basically when it’s near the end.

Back to Friday’s market action:
The market continues to shrink volume and fall. The index has already broken below the 5-day line, and this bottom hasn’t been confirmed yet. Geopolitical factors and the holiday impact make trading relatively dull.
All day, the tech line led—cpo and optical communications were the strongest. They basically siphoned capital from the whole market. There’s been localized inflow back into pharma, and the high-end names still held their ground.

On Friday, I didn’t write a recap. But Thursday and Friday’s premarket were both quite good, and they were still very instructive for that day’s operations.

On Thursday’s premarket, I pointed everyone toward one direction: an innovative drug. That day, pharma became the strongest.
Tianjin Pharmaceuticals opened with a one-word limit-up, matching the forecast.
Mennuovah (美诺华) did a back-and-reverse on the day, also matching the forecast. On Wednesday, I suggested low-buying while under water in the comments section; on Thursday, I notified everyone to smash the board on weakness.
There were two one-word boards guiding the view: One was Zhongyao Shares (重药股份), and the other was Mianzi Needle (两面针). It completely matched the forecast, except that Mianzi Needle failed to hold the board. That’s why the strength in pharma wasn’t enough.
Wanbangde (万邦德): low-bought under water on the day, and by the close it reached 4%. Low open, high walk up—also matched the forecast.
I might not be able to understand every pharma stock, but for the key stocks and what could happen on the day, we still need to do scenario planning in advance.
All of this is premarket scenario planning. Not some after-the-fact “Monday-morning quarterback” explaining all kinds of logic elsewhere. After the fact, everyone can say it and explain it. If you can give it to me in the premarket like this, not many people can!

On that day, AI hardware was also pushed to everyone again—still Changfei and Hengtong. I pushed them for a month! If you know, you know. Continued premarket promotion.

On Friday’s premarket: although last Thursday night the U.S. market turned red, I personally wasn’t optimistic about A-shares on Friday. Because with the overlapping long holiday, the willingness of capital to go long would definitely be weak. Then trading volume would surely shrink. When volume shrinks, the market will continue to fall. So I suggested everyone keep position size under control. The result: on Friday, another 4,000 stocks fell!

My prediction about pharma that day was also relatively accurate. That day, there was a pharma “going overseas” customs-tax negative, but actually it had no impact on innovative drugs/cxo. Most retail investors can’t tell the difference. Personally, I think innovative drugs used this as a catalyst for a rinse-and-shake. The trend is still pretty good.
Tianjin Pharmaceuticals (津药药业) didn’t fall apart. It went strong and hit the board. I originally expected an open around 3 points (i.e., about 3% up) because even though there was a negative headline, it basically didn’t affect Tianjin’s strength. Here’s the detail: Tongda (通达) funds also wanted to use the negative to knock Tianjin Pharmaceuticals out, but Tianjin was too strong. Once it hit the board, it got sealed tightly, and Tongda couldn’t hold on and simply collapsed. This is a game. If Tianjin had failed to seal the board and got dumped and sold down, or if it opened and immediately sank, then if Tongda could seal, it could become the top gainer, and the capital’s mindset would be much stronger.
Second point: there was no one-word across the sector (“no all in one-word”). Then it’s simple here: pharma had bigger disagreements that day, so it could only rely on Tianjin Pharmaceuticals to stand independently. The market also moved exactly like the scenario forecast.
The trend core Wanbangde avoided the “abnormal move” (绕异动) zone—low open, high walk up, and turned red. At that moment, I also had a 5-point view, and I chose to keep holding because the trend is very beautiful. It’s just a pity I didn’t do T-trades.

Finally, for the pharma summary: there are differences within. Many stocks related to tax impacts got hit and ended up falling hard. But those without a tax impact are doing fine. So I want you to distinguish them clearly. For pharma’s full-day走势, my prediction was basically accurate.

Direction three is still AI hardware, still fiber optics! That day, fiber optics continued to surge violently. I’ve listed all the key takeaways for you.
1, Farsun (法尔胜): successfully avoided abnormal movements; next week you can let loose!
2, Changfei Optics and Fibers: surged and then pulled back; today is a perfect point to do T-trades.
3, Hangdian Co., Ltd.: also a T-trade point.
4, Hengtong Optoelectronics (亨通光电): still strong, making new highs again!
All of the content was written for everyone already premarket, including the playbook. It’s not a “post-event” forcing you to do T-trades—it’s T-trades with a plan.

Position planning:
Wanbangde: I originally planned to do T-trades, but when pharma opened, the strength wasn’t enough, so I didn’t low-buy while under water. It’s a bit regrettable. This stock still needs to go around one more day.
Tongda Shares (通达股份): there was a PK with Tianjin Pharmaceuticals. At the open, it showed strong strength and hit the board, but power didn’t follow. Leshan Power (乐山电力) kept heading downward. So even if Tongda shows a weak-to-strong turn, I still want everyone to smash the board. The comment section reminded people. You can enter all day on Thursday. Many people went based on the comments section. Friday is an “execution/realization” time point, but some brothers still went. In the stock market, it’s always the first-movers who smash the board and the latecomers who get smashed. Timing and getting on quickly is the king’s way!

Opening trades on the day:
Tongyu Communications (通宇通讯): I reminded everyone during the day—communication strength hit the board, the day’s highest. But during the day I also said that opening Xinengtai (新能泰山) might be even better, since it has more “breathing room” (a positional advantage). Treat arbitrage as just arbitrage.
Yitian Shares (易天股份): I was afraid people would chase higher, so you can’t do it. The key OCS switches and several major core tickers were explained in the comments section that day. As for whether to buy or not, that’s on you.
Zhongli Group (中利集团): low-buy at -3 while under water. I said it in the comments section. It closed up 1 point. Leave some cushion so you can handle Monday’s low open.
Wanbangde: currently close to +4, still holding. My thought that day was: if Tianjin Pharmaceuticals doesn’t open and break the board, I won’t leave. After the holiday, Tianjin Pharmaceuticals’ 6-to-7 board node—if it succeeds, pharma will come back in (sector rotation), possibly even into a climax.

The strongest on the day without question was optical communications.
For the next key points: the PK between the two 2-board names, as well as the performance of Changfei and Hengtong within the sector. Can Farsun deliver a return of the king?

Cloud computing swapped in a new batch of limit-ups. Far East Shares (远东股份) was Thursday’s “surprise,” and the result: it hit a limit-up again on Friday.
Cloud Sai Zhilian (云赛智联) has ugly candlesticks. Zhenzhi Technology (直真科技)—let’s see if after the holiday it can lock in a one-word limit-up.
Here, we still need to watch the “big brothers” in computing power: Oryde (奥瑞德), Meiliyun (美利云), and Hongjing Technology (宏景科技). If these three go up, the sector will have imagination/room to run.

Other directions, I won’t talk too much. Today’s article is written a lot. I hope brothers add fuel! Make sure this entire post gets filled with oil-sealing awards. Thank you!

Brothers who want to make progress: trade sesame for watermelon!! 100 points, or fuel! This requires long-term persistence. If you want answers, I want data. Mutual support. Thank you！！！！

Writing takes effort; brothers, please like, tip, comment, add fuel, and催播 (keep it going). Thank you. I don’t have theories here—only real execution.

Together in the sea of stocks, set sail and head for the horizon
Respect the market, follow the market
Focus on the main line, pay attention to core names
No joy in gains, no sorrow in losses
Thousands of waters, strive for just one ladle
Planned trading, unity of knowledge and action
Always remember: stable profitability