The Basic Outline of the Theory of Power Speculation

"Power Speculation Theory" was founded by Zeng Xingzhi after studying hundreds of investment classics, integrating the ideological essence of erudition and many disciplines, and combining the successful practical experience of stocks and futures. The theory of power speculation believes that the market is unpredictable, and the future Full of uncertainty, we can only track the changes in the operation of various forces and find the best opportunities for speculation.

The basic idea of "power speculation theory" is that the change of security price is very complex, and it is affected by many kinds of forces at the same time, and we cannot determine only one or several forces. Among the many forces that affect the price of securities, each force has its own rhythm of operation, from starting, running, gradually strengthening, self-repairing, and finally destroying, and then this destruction will form the starting, running, gradually strengthening, and finally destroying the opposite forces. Self-healing to eventual destruction, and so on and on and on at different rhythms. At the same time, each force is affected by other forces, it affects the operation of other forces, and other forces also affect its operation. The price of securities changes under the impetus of many complex forces. No one force can play a decisive role. We can only track the operation of each force and the changes in the relationship between various forces to find the best value. Speculation objects and opportunities for speculation.

The forces that promote the operation of the market mainly include the "time force" of the virtual market and the "space force" of the real economy. These two forces themselves have various forces of different cycles and scopes, and all these forces affect each other. , or conflict, or resonance. If there are conflicts and contradictions between various forces, the market will appear close to equilibrium, with repeated oscillations in both up and down directions; if various forces resonate together, then the market will appear far from equilibrium and continue in a single direction. sports. Therefore, when using the theory of power speculation to conduct speculative operations, if various forces in the market conflict and contradict, avoid speculative operations. speculative profits.

First, in terms of the "time power" of the virtual market, the theory of power speculation believes that the operation of the market is the result of the interaction of various time-cycle forces, including long-term power, medium-term power and short-term power. Specifically, there are time forces with a cycle of several months and a dozen months (long cycle), a time force with a cycle of several weeks and a dozen weeks (medium cycle), and a time force with a cycle of several days, a dozen or so weeks. Days are the power of time for cycles (short cycles). The relationship between these three temporal forces is that the strength of the longer period determines the strength of the shorter period, and in turn, the strength of the shorter period affects the strength of the longer period.

When the forces of various time periods move upward, the market will produce a relatively large upward movement; when the forces of various time periods all move downward, the market will produce a relatively large downward movement; When the forces and directions of various time periods conflict with each other, the market will have repeated up and down oscillating movements.

According to the "time power" of the virtual market, when the theory of power speculation is applied to specific speculation, that is, when the long-term power, the medium-term power and the short-term power are all rising simultaneously, enter the market for long-term speculation; When the cyclical, medium- and short-cycle forces are all down at the same time, enter the market for short speculative operations; when the directions among the long-term, mid-cycle and short-cycle forces are inconsistent, avoid the market and do not speculate. In this way, the highest speculative income can be obtained within a certain period of time, and the speculative risk can be avoided most effectively.

Second, in terms of the “spatial power” of the real economy, the theory of power speculation holds that the operation of the market is the result of the interaction of various spatial forces, including large-scale, medium-scale and small-scale forces. Specifically, there are space forces in the scope of countries and regions (large-scale), space forces in industries and industries (medium-scale), and space forces in the scope of specific companies and commodities (small-scale) ). The relationship between these three space forces is that the power in the larger space determines the power in the smaller space, and in turn, the power in the smaller space also affects the power in the larger space.

When the forces of various spatial ranges all move upward, the market will produce a relatively large upward movement; when the forces of various spatial ranges all move downward, the market will produce a relatively large downward movement; When the forces and directions of various spatial scopes conflict with each other, the market will produce repeated up and down oscillating movements.

According to the "space power" of the real economy, when the theory of power speculation is applied to specific professional speculative operations, that is, when the large-scale, medium-scale and small-scale forces all rise simultaneously, enter the market for long speculation; When the large-scale, medium-scale and small-scale forces all go down simultaneously, enter the market for short-selling speculation; when the directions among the large-scale, medium-scale and small-scale forces are inconsistent, avoid the market and do not speculate. In this way, the highest speculative income can be obtained within a certain period of time, and the speculative risk can be avoided most effectively.

Third, the professional speculation of power speculation theory combines the "time power" of the virtual market with the "space power" of the real economy. The large-scale strength, medium-scale strength, and small-scale strength of power, when these forces are all upward, the market will have the strongest upward movement, which is the best time to do long speculation; Power, short-cycle power, and the large-scale, medium-scale, and small-scale forces of space forces, when all of these forces are down, the market will have the strongest downward movement, which is the best time for short speculation.

According to the theory of power speculation, both long and short cycles can only track one kind of force that is related to them, while the medium cycle has a higher level of decision power and a smaller level of influence. Therefore, the use of power speculation theory , the most effective way to speculate is: professional mid-line speculation, that is, using mid-cycle power to speculate. The direction of the mid-cycle force selected by this professional mid-line speculation must be consistent with the direction of the long-term force; moreover, in the specific speculative operation, the speculative operation must be started when the mid-cycle force has just changed, and then the mid-cycle force has just occurred. End the speculative operation when the other direction changes.

Fourth, the most perfect mid-line speculation in the theory of power speculation requires all forces in the "time force" of the virtual market and all forces in the "space force" of the real economy to have the same direction. Since it is rare for all forces to be completely consistent in a single securities market, the theory of force speculation has two specific speculative strategies: one is to find opportunities for all forces to operate in unison in multiple securities markets, including Various stock markets, various commodity futures markets, various financial futures markets (currency futures, bond futures, stock index futures, etc.), etc., in this way, when various forces in a certain market conflict, we can also trade in other markets. , looking for speculative opportunities in which various forces resonate together.

There is another way to speculate. In a single market, it is rare for all forces to fully resonate with each other. However, when we speculate on the specific midline, we can try to find more opportunities for the forces to run in the same direction. , especially to find as far as possible the power of a longer period of time, the power of a larger space range is consistent with the direction we choose to speculate. In some markets where short-selling speculation is not possible, only one-way speculation can be performed. Therefore, there is very little time for perfect midline speculation in line with the theory of power speculation. In this case, we can look for as many as possible. The direction is consistent with the force to operate.

Fifth, in the "time power" of the virtual market, it also includes time power in different spatial ranges, including large-scale time power, medium-scale time power, and small-scale time power. Likewise, the time force of each scope has its own running rhythm and is also affected by the other scope forces. A larger range of time power determines a smaller range of time power, and in turn, a smaller range of time power affects a larger range of time power.

Speculation using the theory of power speculation is to search for the mid-range power that best matches the rhythm of the large-scale power in different ranges of time power, and then continue to look for the small-range power that best matches the mid-range power rhythm. The final selected specific small-scale power becomes the key speculative object of power speculation, and they can obtain the best speculative income in the same "time power" operation.

From the perspective of the "time power" of the virtual market of stocks, there are the time power of the entire market (large range), the time power of a single industry (medium range), and the time power of specific individual stocks (small range). Using the theory of power speculation to speculate on stocks is to search for the industry that is most consistent with the time power of the broader market at the selected speculative time point, and then continue to search for the stocks that are most consistent with the time power of this industry. From the perspective of the "time power" of the virtual market of commodities, there are the time power of the entire commodity market (large range), the time power of a specific type of commodity (medium range), and the time power of a specific commodity (small range) ). Using the theory of power speculation to speculate in commodities is to search for a certain type of commodity that is most consistent with the time force of the entire commodity market at the selected speculative time point, and then continue to search for the specific commodity that is most consistent with the time force of this type of commodity.

Sixth, the "space power" of the real economy also includes space power in different time ranges, including long-term space power, medium-cycle space power, and short-cycle space power. Similarly, the space force of each cycle has its own running rhythm and is also affected by other cycle forces. The space force with a longer period determines the space force with a shorter period, and in turn, the space force with a shorter period affects the space force with a longer period.

To speculate using the theory of force speculation is to search for the mid-cycle force that best matches the long-cycle force rhythm in the movement of space forces in different cycles, and then continue to search for the short-cycle force that best matches the mid-cycle force rhythm. The specific short-cycle power finally selected becomes the key speculative opportunity for power speculation, and they can obtain the best speculative returns in the same "space power" operation.

From the perspective of the "space power" of the real economy of stocks, there are space power with a cycle of more than ten years (long cycle), a space power with a cycle of several years (medium cycle), and a cycle of several months. space force (short cycle). Using the theory of power speculation to speculate on stocks is to search for the medium cycle that is most consistent with the long-term space force on the selected speculative object, and then continue to search for the short cycle that best matches the medium-cycle space force. From the perspective of the "space power" of the real economy of commodities, there are also space forces with a cycle of more than ten years (long cycle), a space force with a cycle of several years (medium cycle), and a cycle of several months. space force (short cycle). To use the theory of power speculation to speculate on commodities is to search for the medium cycle that is most consistent with the long-term space force on the selected speculative object, and then continue to search for the short cycle that best matches the medium-cycle space force.

Finally, during most of the market's operating time, the directions of the various forces are in conflict with each other, and there are very few times when the forces resonate together. Therefore, using the theory of power speculation to conduct professional mid-line speculation, most of the time is waiting, and only very little time to participate in the market to speculate, requires excellent cognition, patience and mentality. At the same time, the time for the combined resonance of various forces is also the scope of application of the theory of power speculation for professional mid-line speculation. Therefore, beyond the time for the combined resonance of various forces is beyond the scope of application of the theory of power speculation. For this scope of application of the theory of power speculation, it must always be recognized and long-term adhered to in order to obtain successful speculation that lasts for decades.