The important thing about stocks is the opening price.

Five golden trading rules—strictly follow them, and you’ll suddenly see it clearly. So it turns out stock trading can be done like this too. Especially for friends who only have a few tens of thousands or a few hundred thousand, you should do the same. If you achieve it within a year, I can’t say these five lines will make you rich day to day, but at least it can help you lose less.

First rule: if it opens down 3% and doesn’t turn green immediately, run. Once the stock opens and drops more than 3%, and within ten minutes it still hasn’t even touched the red board, don’t hesitate. This is like stepping outside and running into a sudden downpour—if you don’t duck for cover right away, you’ll end up drenched. In this situation, it’s highly likely the main force is running. Holding on stubbornly only makes you sink deeper. Cutting losses in time is the wise move.

Second rule: after a flat move for 20 minutes, ramp up—add boldly. If the stock opens flat and doesn’t fall, and within 20 minutes it suddenly surges upward, that’s the main force testing the market—like seeing a promising “dark horse” start to lift its head. Get in quickly. Stocks like this usually have big moves later on. Adding to your position at this time is like buying insurance for your profits. When the opportunity comes, you’ve got to grab it.

Third rule: if it opens up 2% to 5% without a limit-up, sell half first. When a stock opens within this range, and it doesn’t push to the daily limit within half an hour, it means the main force is “working the trade” slowly. Sell half the position first and lock in gains—take profits and be at ease. Keep the remaining position to watch and wait. You can strike when the time is right, and when things go wrong you can defend yourself. Hold the initiative in your own hands.

Fourth rule: if it opens up more than 5% and isn’t limit-up within an hour, clear out immediately. If it opens more than 5% and can’t be held at limit-up for a full hour, that’s clearly the main force lifting the price to distribute shares. Don’t be fooled by the surface-level rise. Clear out and leave right away—one second slower, and you might become the main force’s bag-holder, trapping yourself in the loss.

Fifth rule: don’t rush to sell when it hits the limit-up at the open—trading volume is the key. If the stock hits limit-up right at the open, don’t get too excited; keep a close eye on the trading volume. If volume expands, it means the main force is still actively accumulating shares—so keep holding; it might even run into consecutive limit-ups. If volume is too small, be careful—the main force could bail at any moment. Taking profits when they’re good is the safe approach.