Practical skills for the six best selling points in stock market trading

Seizing the following key opportunities to sell stocks can make retail investors feel that selling stocks is not too difficult!

(1) When the overall market situation forms a major trend, resolutely clear all positions and sell them.

When the Shanghai Composite Index or the Shenzhen Composite Index rises significantly and forms a medium-term large 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. Focusing only on the trend of individual stocks is like seeing trees without seeing forests. According to historical statistics, 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 control of the main players, 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.

(2) 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. Although there are still many investors buying at this time and buying is still enthusiastic, it is easy to confuse investors with poor viewing experience, and sometimes even make misjudgments about trading. In fact, the main force is to sell chips in a concentrated manner, and no major force is willing to collect chips in the high price area to achieve the desired "trading" goal of a few investors.

The trading volume has reached its highest level in recent months or even years, which is a powerful signal for the main force to sell and the key for shareholders to sell. Stocks without the main force's support are difficult to rise, and it is difficult for small and medium-sized retail investors to push up stock prices alone. At the end of the uptrend, the trading volume reached a record high, with over 90% forming a large head area.

(3) 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.

(4) The key to selling is to announce the expected positive news in the market after the stock price has risen significantly.

(5) After a significant increase in stock prices, the key time to sell stocks is around the ex rights date.

When a listed company implements a distribution plan at the end of the year or mid-term, and the stock price rises significantly, a market trend of selling stocks at a high price is often formed before and 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.

(6) When the RSI value of the stock reaches 80 or above on the weekly K-line for 6 weeks, it is crucial to sell in high batches.

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.