The basic principle of making money in stock trading is to buy low and sell high. If you can buy a stock with rising potential at the bottom, it means high profits. Although it may sound simple, the actual operation is not that easy. In the process of stock trading, the price of stocks is influenced by multiple factors, and few people can accurately predict the trend of the stock market. Even if they choose the right stocks, they may not be able to accurately judge the timing of buying. Therefore, choosing stocks is important, but choosing the right time to buy is even more important.
Firstly, we can determine the buying point of a stock based on its trading volume: an increase in volume and a rise in price. Buying signal: if trading volume continues to increase and the stock price trend also turns upward, this is the best buying signal for the short to medium term. Volume increases and price increases "is the most common bullish proactive attack mode, and one should actively enter the market to buy and dance with Zhuang.
Volume increases and price remains flat, turning positive signal: The stock price has passed through a continuously declining low area, and there is an increase in trading volume. The stock price has stabilized, and at this time, the positive column line of general trading volume is significantly more than the negative column, with a clear difference in volume between convex and concave. This indicates that the bottom is accumulating upward momentum, and the main force is purchasing goods, which is a mid line turning positive signal. It is advisable to buy stocks in moderation and wait for the rise. Sometimes, during an upward trend, there may be a "volume increase and price plateau", indicating that the stock price has temporarily suffered setbacks. As long as the upward trend is not broken, there will still be a market trend after consolidation.
From a technical perspective, buy when RSI hovers at a low level three times and buy when RSI is below 10. Sell when RSI is greater than 85, and sell when RSI hovers high three times. When the stock price reaches a new high and RSI cannot reach a new high, it is necessary to sell. KDJ can be used as a reference, but market makers often aim to cheat the line by pulling up in the late trading session, targeting technical experts. So we must not just trust KDJ. In short-term trading, the WR% indicator is very important and must be carefully considered. Take a closer look at TRIX for the long term.
When the moving average crosses, there is usually a technical correction, buying when the cross returns to the upper level and selling when the cross returns to the lower level. Both the 5-day moving average and the 10 day moving average are moving upwards, and buying when the 5-day moving average is above the 10 day moving average will not sell as long as it does not break the 10 day moving average. This is usually done when repairing indicator techniques, such as selling when it is confirmed that the 10 day moving average has been broken and the 5-day moving average has turned downwards. Because the 10 day moving average is important for traders. This is their cost price, and they usually don't let the stock price fall below this line. But there are also strong market makers who may fall below the 10 day moving average during market washing, but the 20 day moving average generally does not break. Otherwise, the situation is not good and we won't be able to handle it.
For stock trading, it is still difficult to accurately choose stocks, and it is even more difficult to catch the limit up stocks. Each of us is constantly exploring and learning. For novice stock traders, we do not recommend rushing into the market. You can learn on simulation stock trading software for a period of time before conducting real trading. After practicing simulation trading, you can reduce trading risks in the process of stock trading.
