1. Focus on breaking points and seize opportunities for rebound. Although the market has been consistently declining, it is not a daily drop and there is always a time for rebound. Especially when the overall market or individual stocks break below important levels, it is the best opportunity for sniping. When important points in the market are broken, it is usually when panic trading surges out in large numbers. But in fact, after a sharp decline and panic, there must be an inertia rebound, just like the bounce of a ball after it lands. This rebound is an extremely precious profit opportunity in a bear market and is one of the key points of how to seize the rebound in a bear market.
2. Do familiar stocks and constantly operate in fluctuations. Repeatedly trading familiar stocks does not necessarily mean deliberately catching big dark horses, chasing after rising and falling stocks, or tracking hot topics. In a bear market, hot topics often only have one day of sentiment, and may even be trapped. As the saying goes, thirty years in the east of the river, thirty years in the west of the river. As long as the quality of the listed company is good, there will be times when the stock will rise. Being familiar with a stock allows one to understand its temperament, when it rises and falls, where there is support when it falls, and where there is pressure when it rises, so that one has a clear idea.
3. Learn to empty the warehouse, learn to wait. This is an essential part of how to seize a rebound in a bear market, and learning to short and wait is a compulsory course for any investor who wants to make money in the stock market. About 250 trading days a year, in a bear market, one must learn to hold cash for 200 days. If you hold all your stocks every day, it's like filling in black ink in a painting. Imagine what kind of painting it would be. Similarly, in stock trading, one must learn to proactively leave blank spaces, which is known as' short positions'.
In addition, we should be particularly careful when fighting for a rebound, otherwise it is easy to take the last blow from institutional traders. In my opinion, in the current market situation, we should pay attention to the following points when fighting for a rebound:
1、 Has the bearish sentiment truly been exhausted? Some negative impacts are far-reaching and difficult to digest in a short period of time, such as this year's major and minor non real estate and subprime mortgage crises.
2、 Is there any real positive cooperation? Except for a few adjustments to stamp duty this year, almost none of them can be considered substantial benefits, and the rebound effect caused by such benefits often needs to be discounted.
3、 Is the stock price really close to the bottom? How is the coordination of quantity and price? Is there a continuous occurrence of "price increase and quantity increase" or "price decrease and quantity contraction"?
There are also some things to pay attention to, such as whether there is a serious "oversold" phenomenon in technical indicators, whether there is reference value compared with historical market trends, whether the medium and short-term moving averages have shown a reversal trend, etc. These methods may be difficult to meet in the current market, so they are not listed one by one.
Overall, since it is a rebound, the operation should focus on "speed" as the core, adhere to fast in and fast out, and never treat "rebound" as a "reversal"!