The intensity of the long short game in the capital market is no different from a life and death battle on the battlefield. Only by selecting the right time to preserve strength and concentrating forces to launch a heavy attack can we win the opportunity. Maximizing profits is always the highest goal for investors to participate in market games. To achieve this goal, investing in the market is often an important way. In the actual operation process, it is necessary to keep in mind the "six tips".
Tip 1: Persist in fully researching from three aspects: trading volume, turnover rate, and trend line.
In the short term, the stock price has risen rapidly to over 30%, especially for doubling stocks, with a surge in trading volume and a turnover rate continuously exceeding 15% (the proportion of small and medium-sized enterprises in the SME board and ChiNext board can be relaxed to around 25%). The increase in volume is stagnant, and it has fallen below the 5-10 day average line. Therefore, strategic preparations for reducing positions should be made. If the stock does not break through the 30 day line, or quickly shrinks and falls below the 30 day line, and the daily K-line closes to counter the long yang, and then rises again and stabilizes at the 30 day line, the chips can be retrieved.
Tip 2: Be wary of the main force creating fake breakthroughs.
A 'false breakthrough' is a way to break through historical resistance levels by hitting the limit up and reaching a new high. Many technical experts are optimistic that the medium to long term huge upward space of the stock will be opened up, and they are eager to chase after it. However, in the following days, the stock price did not rise but fell, and even broke through the level. It can be seen that the main force's fake breakthroughs in technology often represent a weakening of the intermediate market. Usually, some stocks change hands in large quantities before the resistance level in the early stage, but the stock price stops moving forward, indicating that the main capital is aggressively distributing chips. If they cannot continue to rise high in the later stage, the holders must leave decisively and be careful of the main force creating a trap to attract more investors. For such stocks, short-term speculators must avoid being trapped and postpone their buying time until the afternoon closing to prevent the main force from suddenly turning around and falling, and escaping to firmly trap individual investors in the mountains.
Tip 3: Be wary of the hunting behavior of "boiling frogs over low heat".
This technique often occurs in varieties highly controlled by funds and other institutions, especially in the process of sustained bearish trends. Fund institutions strategically retreat and sell in hidden quantities every day, causing many bullish investors to suffer repeatedly. Therefore, it is important to pay more attention to the behavior of a stock's price falling from a stagnant high, especially for a leading stock in a time period that has not recovered from its 5-day moving average for three consecutive days. A safe approach is to exit early before seriously "losing hands and feet". To judge the quality of a stock trend and measure its market performance, "If you are bullish but not bullish, you must sell; if you are bearish but not bearish, you should firmly buy in
Tip 4: During the rebound process after a long-term decline, each rebound is a selling point.
If a stock rebounds to the upper track of the long-term downward trend after a long-term decline and chooses to retrace, it indicates that the pressure on the long-term trend line is not small, and it also shows that the main force in such stocks is not determined to go long. They should sell in a wave and wait for the stock price to fall back to the lower track to buy back. Generally speaking, the pressure on the 30 day, 60 day, semi annual (120 day), and annual (250 day) lines is relatively high, and it is likely to become a temporary top. If these resistance levels are effectively broken through, then one should go long with a backhand.
Tip 5: Fall below important platforms and temporarily exit to observe.
When a very sudden large bearish candlestick is left on the daily chart and falls below an important platform, regardless of whether there is a rebound, no rebound, or when a cross star is closed the next day, the goods in hand should be sold out. It is always right for stocks that experience an avalanche like decline to emerge at any time. In the continuous decline of the market, if the stocks held in your hands do not fall or slightly fall, you must stay alert and not take too chances. It is better to come out first, as there will always be times when stocks like this will make up for the decline and catch up with the bottom. Even if stocks experience a rebound in the future, important support platforms in the early stage will become obstacles to short-term rebound, and can also become the peak of the intermediate rebound market, which can withstand market testing.
Tip 6: In the mid to late stage of the market, the second half of the position can be operated smoothly.
After the mid market bottom is formed, individual stocks usually have a rise of about 30% to 50%, and some rebound leaders even have a 100% rise. Investors must remember not to be too greedy. Generally, when facing resistance levels in the early stages, many stocks may experience a certain degree of technical retracement. Do not easily believe in the instigation and temptation of experts. Once the trend line changes, it is important to pay attention to stopping as soon as possible and leave some of the final profits for bold people to earn.
In practical trading, every buying and selling decision should be based on relatively accurate data and absolute obedience to market rules as much as possible, without any emotional factors. Remember the tricks and operate flexibly. Investors should understand that the market bottom they see is too fearful to copy, and the market top they cannot see is too greedy to escape. In the market, only band operations can be golden, and limited investments have the possibility of success.
