Many investors happen to buy a good stock, but they only make a small profit in the early stages of the market and quickly run away, watching the stocks that have already been sold rise with the market helplessly. Or during the short-term peak of the market, many people, for the sake of a small profit, even if a stock has already broken through, insist on holding or even replenishing their position, whether to sell or not, and will inevitably suffer significant losses.
Here, the author introduces some commonly used and practical selling methods for everyone to comprehensively apply in different stages based on market conditions.
One When the market is in the "big head" position, resolutely clear all positions and sell them.When the Shanghai Composite Index or the Shenzhen Composite Index rises significantly and forms a mid-term head, it is a critical moment to sell stocks. Many market commentators believe that it is unscientific to speculate on individual stocks without considering the index. Historical statistical data shows that the market has experienced a major decline, with over 90% to 95% of individual stocks experiencing a major decline. When the market forms a large bottom, more than 80% -90% of individual stocks form a large bottom. The linkage between the overall market and individual stocks is quite strong, and a few individual stocks have risen against the trend under the intervention and manipulation of the main force, which is only a rare and isolated phenomenon. The probability of catching this kind of "Zhuang stock" that rises against the market is extremely low. Therefore, once the market forms a large head area, it is a crucial moment to decisively sell stocks in batches.
II The key to selling is to announce the expected positive news in the market after the stock price has risen significantly.For example, if a listed company implements a distribution plan at the end of the year or mid-term, and the stock price rises significantly, it often forms a market trend of selling stocks after the equity registration date or ex rights date. Once there is a continuous market situation of selling tens of thousands of shares on that day, it should be sold decisively to reflect the main force's selling, and it is not advisable to hold the stock for a long time.
III In a market where the overall trend remains weak, resolutely sell when encountering abnormal trends.If there is an abnormal trend in the individual stocks held, it means that the stock may have a significant decline in the future. For example, if a stock abnormally rises in the late trading session, it should be sold decisively. The more we adopt the action of pulling up in the closing session, the more it indicates that the main funds have reached a point where they are unable to protect the market. If the stock price does not fall deeply or the lock up is not yet deep, the position should be immediately liquidated and sold. At such times, it tests the psychological resilience of investors to make decisive decisions.
4 After a significant increase, the trading volume significantly increases, which is the key to selling stocks.After the stock price rises sharply, shareholders generally profit. Once one day the stock experiences a significant increase in selling orders, especially with a lot of active selling, it reflects that the main players and large investors are selling one after another, which is a strong signal of selling. No major player is willing to collect chips in the high price zone to achieve the desired "market swap" goal of a few investors. Stocks without a main force are difficult to rise, and it is difficult for small and medium-sized retail investors alone to push up stock prices. At the end of the uptrend, the trading volume reached a record high, with over 90% forming a large head area.
Five After a significant upward trend, the key to selling stocks is when the daily candlestick shows a cross or a long upper shadow with a hammer shaped bullish or bearish candlestick.After rising for a period of time, the daily candlestick shows a cross star, indicating that the buying and selling forces are equal, and the situation will shift from a buyer's market to a seller's market. The appearance of a cross star at a high level is like a red light at a crossroads, indicating that the market will undergo a turning point. After a significant increase in stock price, a inverted hammer shaped bearish candlestick with a long shadow appears, reflecting a high number of sellers on the day. If the trading volume is high on the day, it is a signal of a peak. When many stocks form a high-level cross star or inverted hammer shaped long bearish candlestick, there is an 80% -90% chance of forming a large head, which is the key to decisively selling.
VI When the RSI value on the weekly candlestick of the stock reaches 80 or above for 6 weeks, selling in high batches is crucial.Buying a certain stock, if the weekly K-line and 6-week RSI value of the stock reach 80 or above, almost 90% of it constitutes the large head area. It is advisable to sell in batches with high scores to avoid the risk of decline.
It should be noted that each method has its imperfections and should not be overly mechanical when used. In addition, selling at the highest point is just a luxury, so we should not be too concerned about profits to avoid disrupting our peaceful mindset. Leaving some room for investment reduces regret and makes it possible to make small profits over time.