Method 1: Issues Concerning Stop Loss and Take Profit
The setting of take profit and stop loss in stocks is particularly important for non professional investors, as many retail investors may set stop loss but not take profit. Everyone knows about the establishment of stop loss, setting a fixed loss rate and strictly enforcing it when reaching the position. However, most retail investors do not know how to take profits. Why is profit taking important?
For example, if you buy for 20 yuan, set a take profit, sell for 26 yuan, sell for 25 yuan, say 26 yuan is not sold, do not sell for 25 yuan, and sell again at 30 yuan. As a result, the meat was cut for 11 yuan. If profit taking is established, tragedy can be avoided. How to set up profit taking?? For example, if you follow the trend of buying a stock for 10 yuan and it rises to 11 yuan, you set a take profit of 10.4 yuan. Generally, the market maker will not wash you out for a short period of time. If 11 yuan falls back to 10.4 yuan, you immediately take profit. Although you earn very little, it reduces blind action. After the stock price reaches 12 yuan, your take profit will increase to 11 yuan, the stock price will reach 14 yuan, the take profit will be set to 12.8 yuan, and so on. This way, even if the market maker washes and ships, you can easily profit and exit the market.
Method 2: Don't expect to buy at the lowest point, don't expect to sell at the highest price
Some friends always want to buy at the lowest price and sell at the highest price, which is impossible. People who have this idea are usually not experts. Only the market maker knows to what extent the stock price may rise or fall, and the market maker cannot completely control the trend, let alone the small dispersion.
Method Three: Matching of Quantity and Energy
Some stock analysts always talk about the increase in price and volume, but stocks that have reached new highs without quantity should be given special attention, while stocks that have reached new highs with abnormally high volume should be cautious. Short term trading involves stocks with increasing volume as they fall back, which should be a good opportunity for a rebound. However, this does not include stocks that have fallen to the board or stocks that have experienced heavy volume declines at the top. So, in terms of recent blue chip stocks, those that continue to rise with little volume are actually those with a high safety factor, and those that continue to increase volume should be cautious.
Method Four: Make Good Use of Lenovo
What is Lenovo? Based on a certain market reaction, make associations and obtain short-term stock returns. Generally, mainstream leading stocks are often quickly pulled up to the limit up by hot money, and short-term experts often cannot catch up. At this time, Lenovo can often give you unexpected surprises. Lenovo is not only suitable for short-term investment, but also for investing in the same sector through medium to long-term linkage.
Method Five: Learn to Empty a Warehouse
There are many folk experts who are good at using funds for short-term operations to chase up and down prices, sometimes achieving high returns. However, for non professional stock investors, it is difficult to watch the market every day and track hot topics every day. Therefore, in stock trading, it is not only necessary to buy stocks in the upward trend, but also to learn how to hold short positions. When it is difficult to operate stocks in the market and grasp hot topics, the vast majority of stocks experience significant declines. Stocks on the rising list have little increase, while those on the falling list have a large decrease. This requires consideration of holding short positions, which is very suitable for non professional investors.
Method 6: The sharp decline is a significant opportunity
A sharp decline can be divided into a general market crash and individual stock crash. The chances of a bearish decline are much fewer than a sharp decline, which often presents significant opportunities. During my years of stock trading, the market often experienced 2-3 sharp drops each year. A sharp drop is often caused by major bearish or accidental events. A sharp drop that occurs at a relatively high point in the market should be treated with caution. However, for a sharp drop that occurs after the main downtrend or a long period of bearish decline, you should pay attention to the stock, because many bull stocks have the opportunity to fall out.
Method 7: Keep the fruits of victory
How can we preserve the fruits of victory? In addition to setting up take profit and stop loss strategies, it is also important to accurately grasp the overall trend and adopt a wait-and-see attitude when trading. How to preserve the fruits of victory in a bear market? The way to maintain the fruits of victory in a bear market is to always track a few stocks, constantly try virtual buying and selling based on market conditions, and not attempt to buy historical lows. Once the uptrend is established, enter the real trading market. The stop loss line is the lifeline of retail investors, and one should not harbor illusions. Losing often comes from not following the rules. If trapped, don't wait passively, have the courage to admit your mistake, and immediately stop loss and sell. Stop loss if you make a wrong purchase, stop loss if you break a level, stop loss if there is a significant bearish trend, especially if you make a mistake at a high position. Stop loss is an active and proactive stop loss, not a passive stop loss. It aims to mitigate risks at the beginning and make them invisible.
