[Red Envelope] Ayi Dry Goods: Sharing Your Own Trading System (1) Application of Market Feedback in Live Trading.

This is the first part of the valuable content, sharing my journey. Many brothers have responded with heartfelt comments and received very positive feedback. [Taoguba]
I have carefully read all your replies. Being able to share my insights through this article to help everyone avoid detours over the years is an honor for me.
Just a few simple responses.

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Meanwhile, the data from the previous post exceeded expectations. What surprised me wasn’t the likes, but the number of favorites reaching over 100.
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At least I understand that, in this market, there are still many who genuinely want to learn.
Last night, I seriously thought about how to share future valuable tutorials with you.
In the early days, I also watched many big V’s tutorials, which repeatedly emphasized low buy-in, hitting the board, and various trading strategies. While these methods attract traffic, without fundamental skills, all strategies ultimately lead to losses.
So since I’m writing, this series must start from the most basic logic, such as market sentiment, market feedback, expectation management, and position sizing.
Today, I want to discuss the most core aspect at this stage — market feedback.
Why is feedback so important?
Simply put, the fundamental logic of the stock market is four words: drum passing the flower.
You need to find ways to make others willing to buy your stocks at a higher price than your cost, so you can make money.
How to judge if others are willing to take your stocks? You need to look at the feedback of the day.
How your stocks are performing, how other stocks influence your holdings, every detail on the market board tells you the market’s attitude. These are the importance of market feedback.

Two core uses of feedback:
One is to observe feedback for buying, the other is for selling.

Next, I’ll talk about observing feedback for buying. I’m not referring to the so-called one-word direction feedback, but how to capture feedback signals in this highly rotational market, and under positive feedback, how to identify the most core targets.

Now, let’s move into practical case analysis. (All cases posted later are historical data and do not constitute any investment advice).
First, remember one thing: when opening a position, look at the internal strength of the theme.
Let me give an example from March 12 to show how to open a position under positive feedback.
On March 12, the market had unexpected strong sectors: one was chemicals, the other was electricity.
I focused on the electricity sector for my trading.
Before the market opened that day, I already planned to bet on the electricity sector.

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The positive feedback on the market that day was as follows:
1) Green power, closed at 9% after bidding, exceeding expectations.
2) GCL System Integration, had a breakout on March 11, opened high on March 12, indicating positive feedback.
3) Zhongnan Culture, four consecutive limit-ups with no volume increase.

These positive signals indicated that funds were attacking the electricity sector during the day.
And I, on the morning of March 12, also pointed out the core of the electricity theme.
A few days earlier, I mentioned that current fund preferences are for small-cap stocks with high sentiment and large-cap stocks with strong momentum.
So, Zhongnan Culture’s continued volume reduction and GCL’s shrinking turnover could be used to buy into the emotional small-cap stocks.

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After GCL hit the limit-up, funds started to move into large-cap stocks.
Hanneng Cable and GCL System Integration began to gain momentum.
Here, I also shared my operations during the day:
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(For standardization, individual stocks are anonymized).
So on March 13, I focused on the emotional small-cap stock GCL and the large-cap stocks Hanneng Cable and GCL System Integration.
This was the opening of positions based on positive feedback, catching the core early, and the electricity sector also exploded that day.
The reason I used March 12 as an example of positive feedback is because right after, on March 13, the electricity sector showed negative feedback, which I will now explain how to handle for selling.

First, on March 12, the electricity sector had a big bullish candle, which drove market sentiment. Two stocks, GCL and Hanneng Cable, were key to the next day’s market.
But on March 13, both failed to meet expectations.

First, look at GCL. As the core emotional small-cap on March 12, it should have opened with a big order the next day.
At 9:25, after the auction, it was clear that the opening was below expectations. GCL should have opened with a big order, but after 9:15, it kept pulling back, and only at 9:20 did it start adding orders. This ten-minute auction showed external funds had disagreements. When external funds disagree, you need to see if internal funds are firm. But between 9:20 and 9:25, although there were more orders, the actual traded volume increased, indicating internal funds also had disagreements.
Next, look at Hanneng Cable, which is a large-cap stock linked to GCL. The next day, its auction only opened around 2%, far below the expected 5%+ high open.
So, both GCL and Hanneng Cable failed to meet expectations on March 13, leaving only the sell signals, as I mentioned before.

And at the end of the auction, I also promptly pointed out the underperformance during the auction phase.

Market divergence intensified. Since the market feedback was increasingly negative, it was time to take profits on electricity stocks at the intraday high.

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For example, the buy on March 12 based on positive feedback and the sell on March 13 based on negative feedback. Normally, the opening position on March 12 would have been a guaranteed win the next day, but my personal judgment should never override market feedback. Since the next day’s feedback was disappointing, I should have exited promptly.

Let me also share a recent operation example from last week. You’ll find that trading follows certain patterns, and market feedback is always consistent.

Last Wednesday, I traded Yabo and Jinkai.
Following the same logic, I first looked at the positive feedback on the market.
1) Shaoneng and Guangdong Power had their first limit-up at low levels.
2) Huaneng Liaoning Power, with a low-level rebound, opened higher than expected.
3) Yabo Co., opening 6% higher at the start, hitting the limit-up instantly.

With these positive signals, I continued to open positions in the electricity sector, following the current mainstream approach of linking sentiment stocks and large-cap stocks.
Sentiment stocks: opened Yabo.
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Large-cap stocks: opened Jinkai, the most active intra-day.
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This was opening based on positive market feedback.
Then, on March 19 (last Thursday), the market showed negative feedback, so the intraday trend was to sell only.
Yabo was expected to open with a limit-up, but it opened near zero, then declined, missing expectations, and retreated.

Jinkai, as a large-cap linked to Huaneng Liaoning Power, opened lower the next day but then rose sharply, linked to Liaoning Power’s limit-up. After breaking the limit, it was pushed up again by Huaneng Energy, but this was essentially passive. After breaking the limit again, it continued to fall sharply.
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The detailed logic is explained in Thursday’s review article, so I won’t repeat it here.

All of the above are about making buy and sell decisions based on market feedback.
It tells you what to buy, whether to buy, and how to sell.
It may seem simple, but mastering it can help you avoid many pitfalls.
Don’t be afraid to buy when the signal is there, and don’t hesitate to sell when the negative feedback appears.

Finally, I want to thank the brothers who rewarded me after the last post.
@H111c, Top C overall.
@NoahWudao, Second Wudao overall.
@NanErBan @ChaoChaoStocks @YunZhongSanShao, Third.

@DearSimon @LuoYuKongMing @LinPi @AnZai520 @LuckyLittleWealthXian @YaOYaO @DongFengSuperPower @FahaoLiaoran @YiLinJiaYuan @YangCongBuChi @DaPengYiRiTongFengQi @Panmmmm @MingXiaoShao @BaoYuZouChuBuKao @PingAnXiaoChen @YangChunSanYue6789 @ChengZiA @ChengJie @QiuYuTengLong @MengXi1 @WoXiangChiKaoRou @YangYangShengYi @JiangHuHeiManBa @XueZhiQian777 @TieDouJueJin @ChuanLiuBuXi999 @SunshineCaoKong @LuoKeFeiLe @XiaoNaoShu1996 @H111c @ZiXiaoYaoYou @NoahWudao @YangChunSanYue6789 @JiuCai199 @LuoYuKongMing @HuaiXuCangYuXiLuo @AnZai520 @FahaoLiaoran @WoAiDaAMa @HuiBenO @FangFuXi @XiaoNaoShu1996 @CaiDaoZhiJian @XiangRuiZhiJia @XueShanLinHai @E E XiangXiang @ChaoGuoChaoWeiLai @PingAnXiaoChen @PiPiXiaWanBa @LiangHuaBeiGe @YaOYaO @ChangChangZhang88 @YunDanFengQingz @AnnaWudao @QianZheWoNiU @ChengZiA @XinLuManMan @TiaoYaTuDou @MengXi1 @YangYangShengYi @AnhLAi
Thanks to all brothers who rewarded me above.

Thanks to those who supported me in the last post.
@H111c, @YunDanFengQingz, @Sanderui, @MuZiLu, @YangYangShengYi, @ChaoGuoChaoWeiLai, @XiaoXuLiaoTianXia, @JiKe.

My task is complete, brothers. This post contains practical insights from actual trading. Understanding market feedback can help you avoid many pitfalls. Just remember: buy based on positive feedback, sell based on negative feedback. Don’t overthink your holdings.
Future content will gradually share my personal trading system, which isn’t about some so-called strategy, but about how to judge where the profit potential lies within a comprehensive system. It’s a big project, so I hope for your continued support.

Also, remember to like the main post. With 450 likes, tomorrow before the market ➕, during the market ➕, and after the market, I will continue providing comprehensive service!