How to determine the optimal entry point for stocks? Practical Skills

1: The nature and characteristics of the first type of purchasing point

1. The buying points are generated due to the depletion of the downward force, that is, the buying points generated by the depletion of the bearish force, rather than the buying points generated by the addition of multiple forces; Usually, it is judged based on whether there is a recoil. 2. There is a high probability that it can bounce back to the nearest center, but be careful that after a center recoil, it may become a third type selling point (unable to pull back the center); 3. A particularly strong heart is needed, because the first type of buying point is basically buying a little bit next to the lowest point, so there is usually fear after buying;

2: The nature and characteristics of the second type of buying point

The second type of buying point is the first short pullback that occurs after the first type of buying point and does not reach a new low position. The position is higher than the first type of buying point, but it is safer because it eliminates the situation of central extension directly reaching a new low position. The relationship between the first type of buying point and the second type of buying point is both interdependent and competitive; If the upward trend is weak after the first type of buying point, the strength of the second type of buying point will usually also be weak; But if the increase in the first type of buying points is too large, it is likely to indicate that the space for the second type of buying points has been exhausted.

The second type of buying point usually has two purposes: 1. To prepare investors seeking safety and stability; 2. Provide a second entry opportunity for investors who missed the first type of buying point; (If there is a small to large conversion and the first type of purchase point is not caught).

3: The nature and characteristics of Class 2 buying points

1. Class 2 buying is different from other types of buying points, as it has the most things to refer to; 2. Second class buying can often refer to the low point of second class buying, which is usually slightly higher than that of second class buying. If there is a secondary level divergence or bottom classification confirmation near the second class buying price, the reliability is enhanced; The quick recovery effect after a brief breakdown is excellent. 3. You can also refer to MACD, which usually occurs when successful Class 2 buying occurs, and MACD has already approached the zero axis from above to below in the appropriate cycle. 4. Draw a 20 day moving average with a reference level one level higher than the operational level. 5. It is easy for individual stock owners to rise after buying Class 2 stocks. 6 Disadvantages: It is easy to follow multiple second class purchases, which means long-term sideways fluctuations.

4: The nature and characteristics of the three buying points

The three buy position is relatively high, which is a confirmation of the pullback of the previous center and also the eve of some individual stock owners rising. Disadvantages: The location is relatively high and the risk is relatively high.

The above is only a classification of buying points, which basically covers the entry points of all stocks. As for the trend changes of each buying point, they are also inseparable from their roots. Like the trunk of a big tree, adding branches and leaves makes it complete.

All of them are practical experiences that I have summarized over the years. If you can understand every word, you will definitely be able to defeat 90% of retail investors. Do you have any opinions to exchange.