Buying stocks is for making money, but investing in stocks is by no means an easy task.

Doing stocks is like buying and selling, with too many rules and tricks.

For example, selling cigarettes depends on the market and distinguishes between good and bad. What cigarettes sell well and what cigarettes are unsalable? How about the quality of cigarettes?

If you get a fake cigarette, even if you sell ten real cigarettes, they will still be sold at a discount, so you will be very careful when "stocking".

Unfortunately, most investors do not take stocks as seriously as they do buying and selling, and even many shrewd businessmen lose their caution when doing business as soon as they enter the stock market, and start tinkering around in the dark.

Especially when it comes to 'stocking', the fanaticism, blindness, and impulsiveness displayed are truly astonishing.

For friends who are about to enter the stock market or have just entered the stock market, it is difficult to find investment opportunities in the vast sea of stocks. In order to obtain investment returns, it is necessary to be prepared in terms of funds, knowledge, and psychology. Although everyone knows that "the stock market has risks, and entering the market must be cautious", there are also many investors who forget the risks after making money, blindly follow the trend, and end up losing more than they gain, or being afraid of their hands and feet after encountering setbacks, and ultimately miss the best investment opportunity.

As an investor, 'listing' is indeed very important. In this market, there are too many examples of one mistake becoming a lifelong regret.

We have no consensus on how to 'ship' the goods, but if we can identify ten situations where we should not place an order before placing it, the results after placing the order may be much better.

1、 If the market is not good, do not place an order

The idea of investing in stocks aside from the big market was once popular, but it has been proven to be impractical. Dreaming of a stock rising even when the big market is not good is like dreaming of a sunny day in the pouring rain.

Of course, some people say that Buffett holds stocks for a long time, but Buffett also does not look at the market for a long time. If we can avoid looking at the market, it doesn't matter when we place an order. If we can't resist looking at the market, then when making a stock, we must first look at the market.

2、 Do not place orders for enterprises without a future

It is very important for an enterprise to have a future. For an enterprise with a future, its development track is "sesame blossoms steadily". Even if the market plummets, it does not matter. Suning will still sell many appliances, Vanke is still selling many properties, and Kweichow Moutai (Market Forum) is still selling thousands of miles away.

For enterprises without a future, as time goes on, their performance will become worse and their operations will become more difficult, leading to days without tomorrow.

3、 Do not place an order without research

Stocks that have been thoroughly researched, if you have a clear understanding, you will have a good chance in your hands.

If we rely solely on the news we hear, no matter how firm and confident we are, as soon as the stock price drops, we will immediately panic; If it falls again, it will doubt the authenticity of the news; Continuing to decline, I denied the news and eventually cut out of the market, selling at a floor price.

Only through in-depth research, turning "news" into "information" and becoming something that one is confident in after studying, can it become a trustworthy investment reference.

4、 Do not place orders for companies with defects or doubts

Companies with hard problems or doubts should be avoided as much as possible, such as those with poor performance, whether the company will be restructured, how to deal with large accounts receivable, and lawsuits involving huge amounts of money that have not yet been resolved. It is better to stay away from such companies. In the stock market, the "stock tree" stands tall and towering, and there is a forest of giant trees. Why hang on this crooked tree?

5、 Don't place orders for stocks that have skyrocketed in the short term

Stocks that have continuously skyrocketed are probably not cheap anymore, and after buying, they are likely to fall or consolidate, so there is no need to consume them.

6、 The stock price is in a downward trend and no orders are placed

This is not absolute. If you are imitating Buffett, you can continue to buy in a downturn, but there are three prerequisites: first, the company has a good future; Secondly, the stock price has already fallen below the intrinsic value of the enterprise, and it is already cheap firewood, so it is worth picking up some; Thirdly, once you buy it, you should be able to hold onto it. Don't wait until the price of the floor to panic and cut everything.

If we don't become Buffett, we still have to wait for the trend to change. Instead of going against the tide, it's better to follow the trend.

7、 Emotional impulse not placing an order

When in a bad mood, try not to make trades. When your mood gets chaotic, your mind gets hot, your heart flushes, and your hands itch, the result is often a complete failure.

Before placing an order, ask yourself whether the decision to operate comes from rational judgment or emotional fluctuations. If it is due to unstable emotions, leave the market and calm down for a while.

8、 Do not place an order without setting a stop loss

Before thinking forward, think back first; First break even, then make money; First seek survival, then seek development. So, before deciding how much money to earn, first determine how much money you are willing to lose. After all, the former is beyond our control, while the latter is within our control.

9、 If the upward space is less than 30%, no order will be placed

People often go to bargain for a few cents or 10% rebound and 'take chestnuts from the fire', but upon careful consideration, it's really not worth it. If there is gold in the fire, why not take a risk? That's called 'real gold is not afraid of fire'; If there is a chestnut in the fire, even if it is "sugar fried", it is not worth reaching out.

Going deeper, if a person spends their entire life on rebounding, the most they can get in this lifetime is rebounding, and it cannot become a climate change.

10、 No chance of winning, no order

Once you have figured out the first nine situations, your chances of winning will come out, and you will have a clear idea of whether or not to take action.

How to identify bearish traps?

The so-called short trap, in simple terms, refers to the market's main force vigorously shorting, inducing investors to conclude that the stock market will continue to decline significantly and conducting panic selling through the obvious manifestation of weakness in the market.

If the overall market trend suddenly turns downwards, leading stocks will plunge one after another, and the index will continue to decline rapidly, investors should be even more cautious of the bearish trap.

The identification and judgment of short traps can mainly be comprehensively analyzed and judged from the aspects of news, funds, macro fundamentals, technical analysis, and market sentiment

1、 From the perspective of message analysis.

Market leaders often use their promotional advantages to create a short selling atmosphere. So, when investors encounter continuous negative market conditions, they should be extra careful.

Because it is under the heavy bombardment of various negative news that the main funds can easily build positions.

2、 From the analysis of trading volume.

The characteristic of the bearish trap in terms of trading volume is that as the stock price continues to decline, the trading volume is constantly shrinking irregularly. Sometimes there may even be a phenomenon of no volume bearish or no volume plummeting on the market, and individual stock trading is also very inactive during the market, creating an atmosphere of a bearish trend that is far away for investors.

It is precisely in this atmosphere of creating pessimism that the main force can easily build positions at low prices, thus forming a bearish trap.

3、 From a macro fundamental analysis.

It is necessary to understand the policy factors and macro fundamental factors that fundamentally affect the strength of the market, and analyze whether there are substantial negative factors. If there are no particularly substantial negative factors in stock market policies, but the stock price continues to plummet, it is easier to form a bearish trap.

4、 Analyze from a technical perspective.

The characteristic of the bearish trap in the K-line trend is often a series of long bearish lines plummeting, breaking through various strong support levels, and sometimes even accompanied by a downward gap, triggering a chain reaction of panic in the market.

In terms of form analysis, the bear trap often intentionally creates a technical breakthrough, causing investors to mistakenly believe that there is huge downward potential in the future and sell their holdings one after another, thereby allowing the main force to take on a large amount of cheap chips at a low level.

In terms of technical indicators, the bearish trap can lead to serious divergence characteristics in technical indicators, and it is often the synchronous divergence of multiple cycles of multiple indicators, rather than the divergence of one or two indicators.

5、 Analyze from the perspective of market popularity.

Due to a prolonged decline, a heavy trap will be formed in the market, and popularity will be depleted as it continues to be trapped.

However, it is often during moments of extremely low market sentiment that the stock market is not far from reaching its true bottom.

It is worth noting that after experiencing a significant decline in the index, the systemic risk is already very low. Overly bearish on the future market may inevitably lead to falling into new bearish traps.

Sun Tzu said, "If a man does not fight and the temple is considered the winner, then the gains are counted as many; if the temple is considered unbeatable; if the gains are counted as few; if the gains are counted as many, then the wins are counted as many; if the gains are counted as few, then the victories are counted as unbeatable; but if the gains are counted as few, then the losses are counted as nothing. Have you calculated? If not calculated in advance, the losses afterwards will not be calculated.