Avoiding a sharp decline is a martial art that every stock investor strives to pursue, and it is also a very happy thing.

As an experienced driver with 20 years of investment experience, I provide professional interpretation of this issue, enhance investment knowledge, and offer investment references for everyone.

1、 By mastering the following techniques, it is possible to avoid a sharp drop:

1. Don't buy bad stocks, don't buy bad stocks, don't buy bad stocks, tell important things three times. The most important reason for a plummeting stock is poor fundamentals, poor performance, and staying away from poor companies is also the most important principle to avoid a sharp decline.

2. Do not buy stocks without integrity. Before buying stocks of a company, it is best to carefully investigate whether the company has engaged in any illegal or dishonest behavior in the past. If so, do not buy. Because there is no company with integrity, as long as there is one occurrence, there will be a second occurrence. If there is one instance of dishonesty, one must give up this type of stock without mercy.

3. Do not buy stocks with significantly declining performance. Before buying a company's stock, check its performance in the past six months. If there is a significant decline in performance, it is recommended not to buy, as a decline in performance is the trigger for a sharp drop.

4. Do not buy stocks that executives have significantly reduced their holdings in. Before buying stocks, check if there have been any cases of executives selling a large number of stocks. If executives are not optimistic about their company's stocks, why do investors still buy them?

5. Do not buy stocks in industries that are suppressed by policies. If the policy is aimed at suppressing this industry, stock investors should not act against the wind. It is a wise saying to listen to the Party when trading stocks.

6. Do not buy stocks that have already been hyped up. If the stock you are buying now has already risen significantly, it is usually not advisable to buy because after a surge, there may be a sharp drop.

2、 A brief summary.

In terms of operational strategy, the following points need to be considered in order to more effectively avoid a sharp decline:

1. Position, position, position. Be careful not to fill your position. Normally, the maximum position should not exceed 50%, with a total investment of 100000 yuan. In principle, do not hold stocks with a market value exceeding 50000 yuan. If there is really a sharp decline and the position is not full, the injury will not be so serious.

2. Stop loss. Setting a stop loss level is a good way to reduce losses in the face of a sharp decline. When a sharp decline begins, if a stop loss is set and it comes out immediately, it will be very safe.

3. A dangerous signal of continuous decline. In general, if the overall market or individual stocks experience a significant decline for three consecutive days, it is likely a dangerous signal of a change in trend and requires immediate liquidation to ensure one's own safety.

3、 Collapse and Life.

Life is like the stock market, the stock market is like life.

A sharp drop in the stock market is a very terrifying thing for investors, and it is also a situation of serious injury.

A sharp decline in our lives is a sudden and unfortunate event, such as a family member falling seriously ill or a family member experiencing a traffic accident. When facing these sudden major unfortunate events, we need to remain calm and brave, possess strong emotional control abilities, calmly think and handle the unfortunate events, and minimize the negative consequences of the events.