Stock hedging refers to the situation where a stock investor predicts that the stock will rise, but when they buy the stock, the stock price "changes face" and falls. At this point, the investor is in a state of loss, known as hedging. Stock trading is afraid of being trapped, and it's not easy to break free from it. We cannot predict whether we will be trapped, but we can guard against being trapped. Remember the five tips to prevent being trapped in stock trading, which can help you effectively avoid being trapped.

Tip 1: Buy stocks rationally

As the saying goes, only by not fighting unprepared battles can one stand invincible. Every stock investor needs to be prepared when buying any stock, understand the company's performance, market conditions, and price increases, and then choose stocks rationally based on their own situation. They should not blindly buy stocks, nor should they follow the trend.

Tip 2: Set the stop loss point when entering the market

Stop loss! Stop loss! Stop loss! Although investors are aware of the benefits of stop loss, many find it difficult to achieve. The main reason is also due to the mentality of luck, always wanting to wait a little longer and take a look; In addition, the fluctuation of stock prices also makes investors hesitant. When entering the market, it is recommended to set a stop loss point so that significant losses are unlikely to occur.

Mnemonic three: Please pay attention to sudden increase in volume

A stock price drop is not scary, but a sudden increase in volume is even more scary. If a stock suddenly increases in volume, the stock price will also rise. However, if you encounter a situation where the market maker is selling and the trading volume is increasing, while retail investors are desperately buying, then you need to pay attention or sell quickly.

Mnemonic four: Please refuse the middle yin line

If you find that the stock market has a high opening and low closing trend with a bearish candlestick at the end of the day, it is recommended to sell at this time. Because once a bearish candlestick appears, it may trigger mid line holders to panic and sell a large number of stocks. Especially for stocks that have been performing well, if their decline is above 7% or their amplitude is above 15%, they should be cautious.

Mnemonic five: research on technical indicators, please make more mistakes

When trading stocks, one should learn to study technical indicators, which can help investors grasp the trend of stocks and control them. Once they discover that the market is not good, they should immediately sell. However, there are too many errors in the research of technical indicators. It is recommended to specifically study one technical indicator and thoroughly understand it.