April 3rd Review

Today’s advance/decline issues: 716 advancing / 4746 declining, compared with yesterday 1052 advancing / 4378 declining—there’s been another extreme reversal. After the index already fell another 29.26 points yesterday, it continues to fall 39.19 points.
March 25 (Wednesday): second day of gains
March 26 (Thursday): first day of declines
March 27 (Friday): first day of gains
March 30 (Monday): second day of gains
March 31 (Tuesday): first day of declines
April 1 (Wednesday): first day of gains, up 56.69 points
April 2 (Thursday): first day of declines, down 29.26 points
April 3 (Friday): second day of declines, down 39.19 points
Number of stocks hitting the daily upper limit: 36, compared with yesterday’s 27, up by 9
Upper-limit orders released: 12, compared with yesterday’s 18, down by 6. The upper-limit order lock-in rate is 75%, which is 15% higher than yesterday.
Upper-limit order lock-in rate: 75%, which is somewhat higher than yesterday’s 60%. The market sentiment is bad today. The score gap is driving a switch to an “ice-point mode,” leading to a two-day decline. When it’s falling is the time to set up/plan, not the time to panic. So you have to keep a cash/hold position at the bottom, but I don’t have a bottom position anymore. I’ll talk more later.
Number of stocks hitting the daily lower limit during the day: 24, compared with yesterday’s 5, up by 19.
The more consecutive days of declines, the larger the decline gets. The closer it is to a turning point, the more you should add slowly. Now there’s little capital, so you also have to follow this rule; otherwise, at my current level, there’s not a single pullback I can avoid—right now I have two accounts, and in each account I keep at least 20k in funds to do T, unwaveringly.
Today, the stocks I hold keep falling. Shengyang Co., Ltd. went from being up 4,500 to now down 800. Western Materials went from being back to breakeven and even in profit, and now it’s down 6,000. Aerospace Development went from being down one or two thousand to now down 7,900. I caught the ups, but couldn’t control the drawdown—one is down 6,000 and the other down nearly 10,000. My understanding isn’t enough; I can’t distinguish how the overall market and sector are moving. I don’t know when I should add, when I should cut, or when I should stay in cash.
I gap up at the open. If there isn’t enough momentum, you reduce your position!

Western Materials:
April 2 trading value: 20k, turnover rate: 10.32%
April 3 trading value: 2.51B, turnover rate: 10.41%, closed down 4.17%
Aerospace Development:
April 2 trading value: 3.40 billion, turnover rate: 7.79%
April 3 trading value: 2.45B, turnover rate: 8.35%, closed down 4.62%
Shengyang Co., Ltd.:
April 2 trading value: 3.51B, turnover rate: 29.64%
April 3 trading value: 2.32B, turnover rate: 22.68%, closed down 10.1%
Total market trading value: 1.67 trillion, compared with yesterday’s 1.86 trillion; volume shrank by 0.19 trillion. The market continues shrinking volume and declining. Today’s decline is large.
SSE Composite Index: closed down -1.00%; Shenzhen Component Index: down -0.99%; ChiNext Index: closed down -0.73%; Beijing Stock Exchange 50: up -2.12%

Yuneng Holding fell for two straight days, turned slightly green for a day, then fell again for another day. Today there are signs of stopping the decline. At the close, the decline was -0.24%, trading volume was 1.61B, compared with yesterday’s 16.7k. It continues to shrink volume and fall. The volume is a bit less than yesterday. With shrinking volume and a small drop, it stabilizes—does that mean it’s doing a shakeout because it’s involved in shared computing power, thermal power, and green power? Go check what this company is like if it’s a “washout.” I’ll keep watching how it performs tomorrow and continue observing. China Huadian Liaoning State Energy today surged and then kept falling—keep watching, until the 9th and the 7th and 8th days you take the first position.

As for my current strategy: for medium to long-term holdings, I hold one or two stocks and do T. If it has risen a lot, trim the position; if it has fallen a lot, add. If it falls too much, clear out. Later, enter in batches when the timing is right, then do T again. I try to do it as it moves upward and avoid its downward moves. In theory, that means you’ll keep making money. Only operate at the close. Since I don’t have time in the morning, from now on all trades will be conducted only in the closing period. That is my operating rule—follow the plan strictly. Today I didn’t follow yesterday’s plan. Yesterday’s plan was to trim or fully exit Shengyang Co., Ltd. If it went up, wait. But I never made a move because I had unrealistic hopes. The materials stock didn’t move, and Aerospace Development didn’t move either. Yesterday’s plan for Shengyang Co., Ltd. was based on how it performs at the open. If it gaps down too much, lie flat—either wait and observe or fully clear. If it gaps up, run and sell half right away. It was written very clearly, but it wasn’t executed. I still need to practice and learn. The tuition fee is worth it!

Watching my account: Western Materials just came back to breakeven, then fell again to around the previous area. Watching Shengyang Co., Ltd.: from profit 4,500 to now a loss of 800. It makes me doubt everything in life. With all these ups and downs, from the perspective of someone who has been through it, you know what you should do—but how can you do it in a way that helps you avoid these situations in advance?

Looking back at my losses: Western Materials—during those three straight bullish big-day rallies, I kept doing T back and forth, causing me to earn only half the profit. When the pullback started, I didn’t reduce positions in time—I cleared everything. I didn’t realize it was in a downtrend pullback, and now I’ve lost it all the way back to losses again.
Aerospace Development was already close to breakeven; it only lost about 1,000+ at first. But over the past few days of pullback, it went down to 8,000.
Shengyang Co., Ltd.: it was supposed to be up 4,500, but I had unrealistic hopes, and I just kept watching it turn into a loss of 800. Looking back, it’s because I kept the gains but couldn’t bear to sell. I kept expecting it to make more profit. Then a pullback wiped out the profits and turned them into a loss—that’s the fundamental reason: unrealistic hopes.