[Red Packet] 3.13 Panic: Only Proper Profit/Loss Hedging Can Stabilize Your Account!

Right now, looking ahead, daily gains exceed ten thousand. Keep pushing and rewarding, shining all the way. [Taogu Ba]

Today’s Operations:

Trading Account:

Sold: Yuyin Shares, unfollowed underwater, red 11 points (watched at open two days ago)

Sold: Baichuan Shares, sold at high, red 4 points (watched on the board yesterday)

Bought: Jinniu Chemical, moving average focus, red over 4 points (morning target)

Trend Account:

Sold: Shenzhou Information, small red 3 points

Holdings:

HeDuan Intelligent, red 4 points

Dawi Technology, green 12 points

Chuanrun Shares, green 10 points

Market speculation: 1: Yesterday’s external news, closing the strait. External oil and gas rose. Today, focus on oil and gas performance. Oil and gas are absorbing blood, tech lines will be killed. The Two Sessions ended, oil and gas are pulling back, so there’s no big support from the market.
2: Chemical sector has a logical rebound due to oil and gas, also a price increase logic. The strength of chemical bidding is good. Recognizable stocks at the front have low-position trial opportunities.
3: The electric sector is no longer moving uniformly. It’s now rotating in segments. No significant profit effect. Can only look for opportunities in well-recognized front stocks. Back stocks are not worth watching. Today, funds are absorbed by chemical stocks. It’s a tug-of-war. Neither side gets much.
4: Hedging is the lifeline of technology. Not much more to say. Already discussed too much before. But tech has solid logical support. Long-term no problem.

Today’s goal is just chemical stocks. As long as bidding doesn’t have big feedback, low buying is fine. External news and price increases are ongoing. Jinniu has methanol attributes. Yesterday’s weak board locked Baichuan. As long as the sector is fine today, there are good positions to enter. Reminder: don’t open new positions recklessly on Friday. We’ve seen the closing results. The market is sluggish.

Market expectation for Zhongnan Culture in bidding is good. With such strong front stocks, back stocks should show some performance. But back stocks have no significant surprises, so divergence is clear from bidding. Looking at yesterday’s wind power, no expectations either. This situation shows that funds have a strong desire to cash out. Only the front stocks can be touched. Still some gains to be made. Going to the back stocks will get beaten.

Luhua today’s one-word is to guide the front stocks Jinniu or Baichuan. Baichuan thought it would give way yesterday. Today, it’s unlikely to compete for Jinniu’s position.

Also told my fellow traders that Baichuan’s bid opening with a 2-point red is a strong expectation. Can hold and watch. But there’s a Jinniu blocking its way. Although Jinniu exploded halfway yesterday, it was sealed at the close. If you actively sell at the end, it’s just to create a high expectation opening, from limit down to 2 points. Looks beyond expectations, but there’s a big risk. If you don’t quickly seal the board at open and rush for Jinniu’s position, it’s a trap for trap-and-shake out.

Market Review:

The market today overall opened low → surged → fell back → plunged at the close.

9:15–9:25 During bidding, only Zhongnan Culture in wind power had a 5-board sealed order increase, others followed with no expectations. China Power Construction had a large order sealing then quickly withdrew, crashing the power sector bidding sentiment. Core AI stocks like Ningbo Construction opened low, weakening the power sector. In contrast, chemical and coal sectors were strongest, Zhengzhou Coal Electricity, Luhua Technology opened flat, Jinniu Chemical and Baichuan Shares opened high, funds still cautious.

9:30–10:00 Half-hour of battle, indices first dropped sharply then rebounded strongly. After opening low, the Shanghai Index quickly fell near the intra-day low of 4103 points, then bottomed out and rebounded driven by energy and chemical sectors, hitting a high of 4134 points around 10:00, quickly restoring market sentiment. Wind power led the rally on overseas policy catalysts, Zhongnan Culture sealed at the top, Dajin Heavy Industry and Tianshun Wind Power surged. Chemical and coal sectors continued strength, Jinniu Chemical hit the limit, fertilizers and methanol saw batch limit-ups. Meanwhile, high-tech stocks like computing power, AI, CPO plunged at open, Meili Cloud, Shun Na Shares quickly hit the limit down, market showed strong energy but tech divergence.

10:00–11:30 Indices surged then fell back, sector divergence deepened. Wind power remained strong, Tongyu Heavy Industry hit the limit, Dajin Heavy Industry doubled, forming an eight-day rally, but follow-up stocks weakened. Chemical and coal sectors continued strength, Jinniu Chemical sealed at the limit, Zhengzhou Coal and Luhua Technology held steady. High-value tech sectors like computing power, AI, tungsten continued to fall, Meili Cloud hit the limit down, Tuo Wei Information and Zhongwu High-tech plunged, high stocks faced selling pressure. Although most stocks still rose more than fell, risks are exposed.

13:00–14:30 Market oscillated weaker, internal conflicts in computing power sector, only Zhongnan Culture remained at the top in wind power, others like Lvhua Power, Yunnan Energy Control fell back. Computing power sector collapsed, more limit-down stocks, entering a clear retreat phase. Chemical sector saw internal fighting, Jinniu Chemical’s limit was broken, Baichuan’s rise and fall dragged down sector sentiment, funds sold off each other, Zhengzhou Coal and Luhua Technology held steady. Afternoon speculative themes like brain-machine interfaces and 14th Five-Year plans showed little response.

Close: Due to risk aversion, the market plunged in panic. Index fell sharply, the Shanghai Index touched 4086.85 points, ending with a long upper shadow candle, funds rushed to exit to avoid weekend uncertainties. Wind power and chemical sectors only the leaders held firm, Zhongnan Culture, Jinniu Chemical, Dajin Heavy Industry resisted pressure, others retreated. Computing power, AI, high-tech sectors all fell sharply with no rebound, limit-down stocks increased. The volume surge at the close confirmed market fragility, in a low-volume environment, selling pressure caused a collapse, funds abandoned follow-the-leader and mid-cap stocks, only core leaders retained positions, the closing pattern was broadly down, high stocks’ risks fully released.

Consecutive Limit-ups:

5 boards: Zhongnan Culture (Wind) – no problem in bidding, back stocks have issues. Crossing alone?

4 boards: Huaneng Power (Electric) – coal, coal stocks blocked green power.

3 boards: Jinniu Chemical (Methanol) – coal, back stocks are strong, hard to lift.

2 boards: Luhua Technology (Coal Chemical) – coal, fertilizer, bidding helped Jinniu. Also boosted fertilizer. Good candidate.

2 boards: Sanfanggang (Chemical) – third-tier? Third brother?

2 boards: Dajin Heavy Industry (Wind) – weak board absorbing funds.

2 boards: Farsen (Energy Storage) – really solid.

Many first-tier stocks were targeted early, not listing all. Will see how Monday goes.

Tomorrow’s Trading Strategy: (No more pre-market guesses, all in morning thoughts)

Overnight Expectations:

None

Low-buy Expectations (in morning thoughts and during trading):

Technical Tips↓↓↓↓↓↓↓↓↓↓↓↓↓↓

Super detailed trading + swing practical manual: bidding determines life and death, intra-day buy/sell, even beginners can understand this trading system!

Core swing trading insights!

How to improve win rate on bidding, how to operate after bad boards and high-volume boards the next day?

Only operate within recognized patterns

How to sell on the second day after bidding? How to handle if accidentally hitting the limit-up board?

What is short-term trading, and what does it mean? How to respond to the market and short-term?

My position control:

1: When the main trend is clear, I buy at most 2-3 stocks, all front and back in the same sector. Up to 3. I also keep 1-2 layers for replenishment.

2: When the market is average, I reduce to 2 stocks max, and keep half a position for replenishment.

3: In chaotic markets with many expected news, I split positions, e.g., if I like 4 fast sectors, I do 2-2-2-2, leaving 2 for replenishment. This is hedging within recognized patterns, with clear understanding of the market. Some are for short-term profit, some for defense. Don’t buy and hold blindly. Newbies should stay on the sidelines or hold light positions.

My split-position operation mode:

1: When the market is good, I usually hold 8 layers, with 2 for flexibility. When average, cut to half. When poor, only 2 layers.

2: For stocks I believe can trend, I open around 7 layers, gradually lock in profits to 3-4 layers, aiming for main rise. For rebound stocks, I usually open 4 layers, no additional, rolling profit to 2 layers.

3: For bidding, I open big. My bidding account is usually full position for arbitrage. Not recommended for those unfamiliar. I research thoroughly before deploying. Beginners should start with one layer, then add gradually as they learn. (My full position is based on my account size).

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Good opportunities during trading will be shared as thoughts. We don’t do pre-market guesses. Focus on low buying steadily. All pre-market guesses are empty talk. Follow intra-day signals. Our Dragon Team fans don’t gamble on probabilities.

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