Three classic techniques for solving stock market problems: practical skills

The topic of unlocking is quite heavy, after all, I hope to unlock because my stock has been trapped.

Being trapped in stocks not only results in capital losses, but also in significant time costs. Moreover, when encountering new opportunities and wasting market trends, we must recognize that it is unwise to hold on to our funds after being trapped, as it is equivalent to throwing our own funds to others for nothing.

Key points for unraveling:

1. The trapped funds need to be learned to be released

If you are fully hedged, then you must first sell a portion of your individual stocks. At this point, it doesn't matter if you are 30% or 40% hedged. Your selling action is not about cutting meat or confirming the loss value of the account, but about using the funds in our hands to better complete the liquidation. If you are unwilling to come out a little earlier at this time, then there is no way to make a profit, and the result is that the account loss will further increase.

2. Long holding time, short holding time

Due to our judgment that the market cannot reverse in the short term, it will remain in a gray area for a long time. This is the funds we have freed up, and we cannot make up for it randomly when individual stocks fall.

3. How to find low and high points

This is the most important part of the band, and many people know about band operations, but they cannot distinguish when it is a low point and when it is a high point. This section will specifically explain how to grasp the high and low points of the frequency band below.

The best time to unwind

Each decoupling strategy has its own unique characteristics and suitable timing. Investors need to adopt different decoupling strategies at different stages of stock market operation in order to achieve the desired decoupling effect.

1. The stop loss strategy is suitable for the early stages of a bear market. Because the stock index is at a high level at this time, the adjustment time in the future is long and the adjustment amplitude is deep. Investors can decisively cut losses at this time, which can effectively avoid investment risks in bear markets.

2. The short selling strategy is suitable for the mid-term of a bear market. The Chinese stock market does not yet have a short selling mechanism, but it is an exception for individual stocks that have been trapped. Investors can sell the trapped stocks in the middle of a bear market with a clear downward trend, and then buy them at the right time when the market runs to a low level. This can minimize the losses caused by being trapped.

3. The stock holding strategy is suitable for the end of a bear market. At this point, the stock price is approaching the bottom zone, and blindly short selling and stop loss brings unnecessary risks or losses. The result of patiently holding onto the stock at this time is inevitably that the returns outweigh the risks.