What is band operation? Band operation refers to the investment method in which people sell stocks when the price is high and buy stocks when the price is low. Band trading is also a popular way of stock trading among both new and old investors for ten minutes.
Stock band operation skills
1. Stock selection skills
Stocks that are more suitable for band operations may experience an unnatural increase in volume during the bottoming stage, and the effective amplification of volume indicates that there are main funds actively involved. Because retail investors will not rush to build positions under the dual impact of negative fundamentals and technical downturns, the increase in volume at this time indicates that some panic stocks are fleeing without considering costs, and the fact that stock prices remain stable during the increase in volume precisely proves that mainstream funds are taking advantage of the situation to build positions. Therefore, it can be inferred that the stock is highly likely to have short-term opportunities in the future market.
2. Buying Tips
Buy during the trough. The trough refers to the area where the stock price reaches its maximum decline during the fluctuation process. A bottoming market often naturally forms a central area, and investors can choose to buy at the trough position where the market is falling and far away from its bottoming center. Technically speaking, troughs usually appear at the following locations: the lower trajectory of the BOLL Bollinger Bands; The lower support line of the trend channel; The edge line of the transaction intensive area; The stop loss level set by the investor in advance; Location of the bottom of the box, etc.
3. Selling techniques
Peak refers to the maximum range of increase in stock prices during the fluctuation process. Technically speaking, peaks generally appear at the following locations: the upper trajectory of the BOLL Bollinger Bands; The upper track trend line of the trend channel; The edge line of the transaction intensive area; The profit taking position predetermined by the investor; Top position of the box.
4. Stock holding skills
It depends on the wavelength. Wavelength refers to the time required for a stock price to complete a complete wave of market trends. The debate over the superiority of long-term and short-term investment in the stock market has a long history. In fact, the one-sided use of long-term or short-term investment methods is both based on subjective will and detached from reality. The length of investment should be based on objective facts, and when the market has a longer wavelength, a long-term strategy should be adopted; When the market trend has a short wavelength, short-term trading should be adopted; To adapt oneself to the market, rather than letting the market adapt to oneself. Overall, the market is always operating within a band, and investors must grasp the rules of band operation, fully utilize the relative peak of the rise, and seize the opportunity to sell; Make full use of the fundamental turning point, buy when the market is pessimistic, and only need to do this operation a few times a year to obtain good benefits.
Band operation is an effective way of operating in response to the current wave like characteristics of the domestic stock market. Although band operation is not the most profitable way, it is always a method with a relatively high success rate. This flexible and adaptable operating method can effectively avoid market crises, preserve financial strength, and cultivate market and market sentiment.
Band speculation is more important than finding dark horses. In every year's market, there are main peaks and valleys, and the peak is an opportunity to sell; The trough is an opportunity to buy. Wave band speculation is easy to grasp, which is for the overall market. Many stocks have certain wave bands, and we carefully analyze and judge some stocks before determining their value range. When they are far above the value range, there will be pressure for the market to rebound, and then we can sell them; When the stock price enters the undervalued zone, buying at a low level, holding patiently, and waiting for opportunities usually results in significant returns.