Precise and reasonable selling area.

Why not call it a selling point? Because a point is too rigid, the difficulty is too high, it's not that precise, the selling area is generally acceptable, because we advocate macro long-term holding.

Let's get to know this high-wave ladder wave, this main chart indicator is a gray interface, gray interface.

The top is mainly composed of two lines, one is a black ladder-like line. It has a characteristic that this ladder must be getting higher and higher. If you have survived the previous ladder, and if the next ladder is broken and you want to sell, it must be higher than the position of the previous ladder.

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That is to say, the role of this ladder line has come out, ensuring that you sell step by step to a high position.

This black ladder line, we call it the break reference line, the break is a manifestation of volatility. So this indicator mainly reflects volatility.

There is also a white line, we call it the demon stock end line. This white line is mainly for the mode of rising during the demon stock stage. It serves as a selling end line, and it is difficult to encounter a demon stock, this white line can only be used as an auxiliary, and the black ladder line is still the one that is often used. So we have already understood this element.

Next, we will use actual cases to teach everyone. First, we still need to remember three concepts, one is the single ladder reduction method, the other is the double ladder exit method, and the demon stock end method.

1. What is the single ladder reduction method

But this case also talks about the double ladder exit method. Let's take a look at the four circles of a, b, c, and d in the green square in front, this is the single ladder reduction, why is it called the single ladder reduction? Because it is on the same step.Let's first examine Ladder 1, Ladder 2, Ladder 3, Ladder 4, and Ladder 5. These are marked to help everyone accurately locate the positions. We have points a, b, c, and d on Ladder 1. Is it the case that at point a, the stock price has fallen below Ladder 1, while at point b, it has risen above Ladder 1? Then at point c, it falls below Ladder 1 again, and at point d, it rises above Ladder 1 once more.

In these processes, for instance, points a and c represent breaks. A break refers to a reference line for a breakdown; naturally, one should sell when it occurs, but only if it's a break of just one ladder, specifically Ladder 1. We adopt a reduction strategy, which means we reduce our position.

How much should we reduce? Generally, we aim for a reduction of about 30 to 40 percent. For example, if points b and d return to above Ladder 1, we can choose to re-engage the reduced positions, or we can choose not to. If you wish to hold a larger position to earn higher profits, you would re-engage, right? But if you say that at point b, you re-engaged twice, and then at point c, it broke down again, doesn't that mean that between b and c, the portion of the position I ended up with would be at a loss? Correct, it is at a loss.

We can only refer to this as the cost of investment in anticipation of a higher wave. This loss is acceptable because Ladder 1 has only one position, either above or below this line, and the extent of this stop-loss is actually not very significant and is acceptable. Investing this cost in anticipation of a higher increase later on is worthwhile. If you don't think it's worth it and you don't want to take the risk, then you can choose not to re-engage.

Assuming that you have re-engaged, and points b and d have been re-engaged. Has Ladder 1 been passed, and has it not broken down at Ladder 2, right? And at Ladder 3, it also hasn't broken down? Ladder 4 broke down once, and we can continue to reduce our position.

Looking back, you can choose to re-engage or not. But when Ladder 5 breaks down again, you can still continue to reduce your position, as long as you haven't completely reduced it, that's fine.

2. Double Ladder Exit Strategy

However, after you have reduced your position following Ladder 5, you notice that the stock price continues to fall, and as it falls, it breaks below the position of Ladder 4, which is point e. At this time, we refer to it as the double ladder exit method. Why is it called the double ladder exit? Because Ladder 5 was broken, and Ladder 4 was also broken. Ladders 4 and 5, two in total, have been broken.At this very moment, let's not entertain the illusion that the market can rally again. There may be extremely rare instances where it does, but that would be due to luck. In most cases, it won't recover. Once it has fallen below two steps, it's essentially time to exit.

You say, when both the fourth and fifth steps are broken, point e is already quite far from the highest point of 5.26. But if you don't exit at this time, there's still a lot more to fall afterwards. Moreover, you're still in a position of profit. Why worry about what you once had and then lost? It doesn't matter. We just need to be profitable, there's no need to rush, and our profits are actually not small.

So why miss out on so much at point e, selling only after the drop, right? Why not sell at 5.26? Because the volatility at 5.26 did not indicate a reason to sell. That's why we didn't sell there. Why not sell? Because we might have expected it to grow even higher later.

So, it's acceptable to have reasonable fantasies within a reasonable range of volatility. After the fourth step is broken, it's unreasonable to keep fantasizing. Early fantasies are reasonable, but later ones are not, and that's the difference.

Choose the right stock, choose the right timing, and profits are within reach. One correct choice is worth a thousand efforts in a lifetime.