【 Introduction 】 The stock market is like a battlefield. In order to get a piece of the pie from it and avoid turning losses, the author believes that seven tips should be mastered.
Tip 1: Buy stocks that have already bottomed out. Many friends always want to buy at the lowest price and sell at the highest price, but I think that's impossible. I used to hope to reach this level, but after experiencing practical combat, I changed my mindset. Therefore, I don't even look at stocks that hit new lows, as there may be new lows below them. I only buy stocks that have risen by about 5% -10% from the bottom, and are still in an upward trend. This operation often allows you to eat the most meaty part (main rising wave).
Tip 2: Pay attention to stocks with unlimited new highs. Some analysts always talk about price increases and volume increases. After years of trading practice, I believe that stocks that have reached new highs without quantity are worth paying special attention to, and individual stocks that have reached new highs but abnormally high volume should be cautious. If the short-term stock pullback becomes more and more substantial as it falls, it should be a good opportunity for a rebound, excluding stocks that have fallen to the floor or experienced heavy volume declines at the top. For blue chip stocks, those that continue to rise with little volume are actually those with a high safety factor, and those that continue to increase volume should be vigilant.
Tip 3: Set take profit and stop loss points. This is important for non professional investors. Many retail investors will set stop loss points, but not take profit points. But the establishment of profit taking points cannot be ignored. I have a friend who bought Lansheng shares for 18 yuan back then. I told him to set up a profit taking point, but he didn't listen. He didn't sell it for 28 yuan, but when it dropped to 26 yuan, I asked him to sell it. He said I didn't sell it for 28 yuan, and I wouldn't sell it for 26 yuan. I had to sell it again at 30 yuan. As a result, the meat was cut for 15 yuan. If a profit taking point had been established at that time, this tragedy could have been avoided.
Tip 4: Make good use of associations. Based on a certain market reaction, make associations and obtain short-term gains. Generally, mainstream leading stocks are often quickly pulled up to the limit up by funds, and short-term experts often cannot catch up. At this time, Lenovo can often give you unexpected surprises. Taking a certain day as an example: in the morning, China Unicom announced a suspension of trading due to positive news. As soon as China Unicom's national pulse opened, it had a 5% increase and then quickly hit the limit up. At this time, one should think, who is still closely related to China Unicom in this market? Lenovo is not only suitable for short-term investment, but also for investing in the same sector through medium to long-term linkage.
Tip 5: Learn to hold empty positions. There are many experts who are good at using funds for short-term operations, sometimes achieving high returns. However, for non professional investors, it is difficult to watch the market every day and track hot topics every day. So, in stock trading, not only do you need to buy stocks in an upward trend, but sometimes you also have to go short. When you feel that stocks in the market are difficult to operate, hot topics are difficult to grasp, and the vast majority of stocks have experienced significant declines, with stocks on the rising list having little increase and stocks on the falling list having a large decrease, you need to consider short positions.
Tip 6: A sharp drop may be a significant buying opportunity. The chances of a bearish decline are much fewer than a sharp decline, which often presents significant opportunities. A sharp drop is often caused by major bearish or accidental events. It is important to be cautious when dealing with a sharp drop that occurs at a relatively high point in the market. However, for a major drop or a long period of bearish decline, you should start paying attention to some stocks because many opportunities for bull stocks are due to the drop.
Tip 7: Keep the fruits of victory. My friend has achieved a profit of over 50% in the recent blue chip stock market, but he also admits that he is not a master because he belongs to the short-term master type. In volatile and bear markets, he often spits back the fruits of bull market victories and works for securities firms for nothing. How to preserve the fruits of victory in a bull market? In addition to setting up stop win and stop loss strategies, it is also important to accurately grasp the overall trend and adopt a wait-and-see attitude when trading. So, how can we preserve the fruits of victory in a bear market? I think the way to maintain the fruits of victory in a bear market is to always track a few stocks, constantly try virtual buying and selling based on market conditions, and not attempt to buy historical lows. After the uptrend is established, enter the real trading market.
