Understanding the operating trends of the market is the key to investors making profits in stock market operations and is a fundamental knowledge of stocks. And sideways consolidation is one of the most common market trends in the stock market, so how to do sideways consolidation of stocks?

1、 I'd rather not operate than chase after the rise

When the market is sideways, it generally oscillates within a certain area. Because in a sideways market, the fluctuation range of the market is relatively small, investors can only operate in this market by selling high and buying low, and must not chase the rise or fall. If the market continues to rise for two or three consecutive days, investors believe that the trend has reversed and rush to buy higher, often being trapped at the high point of the band. Similarly, in the event of a market downturn, investors should not be overly bearish and can intervene appropriately on dips.

2、 Better miss than do wrong

In a sideways market trend, apart from a very small number of strong stocks, the majority of individual stocks have limited room for upward movement. If investors have already initiated the issuance of individual stocks to boost the market and have missed the best buying opportunity, they cannot rush to intervene in this wave of market trends. In a sideways market, giving up some speculative opportunities that are not suitable for operation can actually better grasp the market situation.

3、 Better earn less than be greedy

Greed is the biggest taboo in the stock market, especially in sideways market conditions. In a sideways market, the duration of each wave of the market is often short, and the profit margin is relatively small. If investors hesitate due to greed, they will miss the opportunity to sell, and their existing profits will be lost or even trapped.

4、 Better to lose less than to lose more

In a sideways market, if investors make operational mistakes or if the market trend undergoes fundamental changes and enters a downward trend, investors should choose to stop losses in a timely manner to prevent further losses.

5、 I'd rather rest than pursue small profits

In a sideways market, it can be divided into two types based on the degree of market volatility: wide range oscillation and narrow range oscillation; According to the hot spot situation, it can be divided into horizontal market trends with clear and prominent hot spots and horizontal market trends with unclear hot spots. Investors should choose wide range volatile markets and hot sectors when participating in sideways market trends. For sectors with narrow oscillations or inactive hotspots, the volatility space is often very small. Not only does it reduce the profit margin for investors, but it also increases the difficulty of operation, so investors must not easily participate.