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Cai Sen's Efficient Trading Techniques for Stocks and Options

Cai Sen's Efficient Trading Techniques for Stocks and Options

Renowned stock market expert Cai Sen focuses on technical analysis, mastering wave operations and making millions in the stock and futures markets. He summarizes two effective trading techniques: ‘bottom reversal’ and ‘false breakout’, which are also applicable in options and warrant trading.

Cai Sen transitioned from a pianist to a futures trader, initially facing many competitors, but through deep research into technical analysis, he emerged as a survivor in the industry. In 1993, he profited significantly by analyzing financial stocks, then successfully navigated multiple market fluctuations, accumulating substantial wealth and now enjoying a retired life in Hsinchu.

He points out that the key to stock trading lies in ‘volume and price’, and that technical indicators like MACD are less effective than directly observing transaction prices and volumes. He believes that bottom formations should not solely depend on moving averages, as precise operations can help identify optimal buying points for improved trading efficiency.

Cai Sen further elaborates on the strategies of ‘bottom reversal’ and ‘false breakout’, suggesting investors enter at the right moment to maximize profits. He emphasizes the timing of options usage and the need for cautious strategy selection in unstable markets while controlling risk.