60k wave band, day 172, currently 1.66 million

February 5th, the 172nd day of swing trading. Let’s first look at the account—today’s profit was over 20,000, but overall the account hasn’t changed much, and no adjustments were made today. Now, let’s talk about individual stocks. Currently holding Dongfang Electric and Sihui Fushi. Both stocks performed reasonably well today. There’s not much more to say about individual stocks; just continue to observe and stay patient.

Regarding the current market situation, it’s experiencing quite intense fluctuations, with sector rotations happening quickly. Many themes are just one-day trades, making this a relatively challenging phase for trading. During this stage, a few issues need attention: one is the balance between attack and defense, which can be viewed from two aspects—position control and target selection.

Position control is the most practical way to manage risk by controlling the size of holdings. The second is target selection, which is more difficult. Currently, chasing high is basically a death sentence. I’m maintaining a heavy position because I believe the market still has potential and hasn’t reached an unmanageable stage yet. It’s just necessary to be prepared and strictly control drawdowns.

At this point, opening new positions or holding stocks isn’t a big problem, but the criteria for targets are higher—they need to withstand pressure and also have strong rebound potential and room for growth. This means being defensive while also being aggressive—otherwise, opening positions and holding stocks in this market makes no sense.

I personally believe that the holdings in Dongfang and Sihui meet these conditions, so I haven’t reduced my positions and will continue to observe.

Now, let’s talk about the broader market. The 4000 level is a significant support point, which was broken through in early January. Although the market is quite volatile now, this level will serve as a strong support. I am optimistic that 4000 will be the bottom this year, so there is room for consolidation. However, there’s no need to be overly pessimistic—corrections are sometimes necessary for better upward movement. So, don’t over-interpret it. Properly manage your positions, choose good targets, and prepare for different scenarios—these are more important than anything else.

That’s all for today. Just a simple record. If you like it, please like and follow. Thank you!