1. Do not buy stocks that have been consolidating for a long time, as these stocks are difficult to rise even during bull markets when the overall market is strong.
2. Do not buy stocks with large ex rights. Ex rights in China are often a means for market makers to attract retail investors.
3. Do not buy stocks heavily held by funds, especially during bull markets. Many people like to follow institutions, but when institutions sell, the stock price often drops dramatically.
4. Do not buy stocks with skyrocketing stock prices. Sometimes, the stock price will rise sharply in a short period of time, and the increase will be huge. Such stocks are prone to significant corrections.
5. Do not buy stocks that have already disclosed major positive news. Before and after the announcement of the positive news, the main funds with more informed information have already adjusted the stock price in place. When retail investors know about it, they often intervene at a high price.
6. Do not buy stocks with sky high trading volume. Stocks with particularly high trading volume are often the result of speculation by market makers, and the rise in stock prices is largely manipulated by humans.
7. Do not buy stocks that have significant problems. Some listed companies may receive warnings or even penalties from the China Securities Regulatory Commission due to operational or financial issues. Such stocks will face a serious wave of selling, with a rapid and huge decline in stock prices.
Three no selling mnemonics:1. Two pronged approach, not afraid of holding stocks. This situation mostly occurs after a long period of decline, when the stock price continuously walks out of two long lower shadow and short entity candlesticks, and the lowest points of these two candlesticks are almost the same. The dual pronged trend means that the resistance forces of multiple parties are very resolute and actively attacking. The chips of the bearish side's downward exploration are quickly digested, and the possibility of the stock price bottoming out is extremely high. You can continue to hold the stocks in your hands and wait for them to rise.
2. The three armies will meet and look forward to the future. After a long period of rising stock prices, a pullback occurs. At this time, the three moving averages of the stock on the 5th, 10th, and 30th will also move from high to low. When the moving averages stick together at low levels and show a rising trend, it is basically a signal that the pullback has ended and the stock continues to rise. At this time, investors can intervene again.
3. Wuyang entered the market and the stock price skyrocketed. After a period of consolidation at the bottom of the stock price, five consecutive small bullish lines appeared, indicating that the bears have given up continuing to suppress the stock. The market sentiment gradually recovered, and speculative and retail investors began to gradually absorb chips. The stock price is expected to rebound in the following trend.
