Stock liquidation is mainly divided into two categories: passive liquidation and active liquidationPassive release is to put the trapped stocks aside and not pay attention to them, wait for the market to improve, and bring up the stock price. This method is a passive approach when there is no other way.
Proactively resolving conflicts is a positive approach, but it also requires some skills. In general, there are six main methods:
1. Downward price difference method
Prerequisite: To accurately determine whether the future trend is downward
After the stock is trapped, when it rebounds to a certain height, it is estimated to reach a short-term high point. Sell it first and buy it back after it falls for a period of time. By continuously selling high and buying low in this way to reduce the cost of stocks, and finally waiting for the total funds to make up for the losses, complete the liquidation, and make a profit, then sell all of them.
2. Upward price difference method
Prerequisite: Accurately determine whether the future trend is upward
After the stock is trapped, buy the stock at the low point first, wait until it rebounds to a certain height, and estimate that it will reach a short-term high point (not necessarily the price at which the first trapped purchase was made), and then sell. By operating back and forth several times in this way, the cost of stocks was reduced, losses were compensated, and the situation was resolved.
3. Reduce the average price method
Prerequisite: Having a large amount of cash and sufficient courage
After the stock is trapped, every time it falls, double the purchase of the same stock to lower the average price. This way, when the stock rebounds or rises, it will be released from the trap. Some people also call this method the pyramid method.
4. Single day T 0 method
Because stock prices fluctuate every day, we seize these fluctuations to make an impact. For example, if you had 100 shares trapped yesterday, you can buy 100 shares today and then sell 100 shares when the stock price rises; You can also sell 100 shares first and wait for the stock price to drop. Buy another 100 shares, and by the end of today's trading day, you will still have 100 shares, but you have already bought and sold one or a few back and forth. One in one out or several in and several out, the closing quantity is the same as yesterday, but the cash has increased, which can reduce costs until the situation is resolved.
The difference between this method and the downward and upward price difference methods is that it involves a round trip on the same day, while the upward and downward price difference methods do not necessarily involve daily operations and can be repeated in a few days.
5. Stock exchange method
When you feel that your stock really doesn't have much chance, choose a stock with a price similar to your own and a chance to rise to exchange, that is, equivalent or basically equivalent to exchange for a stock with hope of rising, and use the profit from the rise of the stock you bought later to offset the loss caused by the decline of the stock you bought earlier.
6. Half warehouse rolling operation method
The method is the same as the downward spread method, upward spread method, and single day T+0 method, but it is not full position in and out, but half position in and out. The advantage of doing this is that it can prevent errors. If your judgment of the future market is wrong, you can also ensure that you have half a position of stocks and half a position of cash in hand, making it more flexible to handle.
In summary, there are various methods to proactively resolve conflicts, but the key or central idea is to do everything possible to reduce costs, make up for losses, and ultimately make money.
Four principles and four techniques for selling in weak markets
1、 Selling the 'Four Principles'
1. The principle of selling early rather than lateDecisive liquidation in the early stages of a decline is always the best choice. If you miss the selling opportunity, especially after a significant decline, you cannot easily liquidate your position, but wait for a rebound to reduce losses. If the rebound fails again, you can cut losses depending on the situation.
2. The principle of selling when a stock continues to decline or even actively kills.If the main force intentionally short, it indicates that there is huge downward potential and it is impossible to predict its support level. The best way is to sell in a timely manner.
3Selling principle when encountering a bearish candlestick.If a stock's decline exceeds 4% and there is no sign of turning back, it is necessary to guard against the risk of a bearish candlestick or even a limit down. When the momentum is not good, it is necessary to "break the arm of the strong man".
4. Sell principle when individual stocks or the overall market break through important support levels.At this point, it is important to pay attention to the effectiveness of the break. If it can quickly rebound after a brief break, it is considered a false break.
2、 Four techniques
1. Sell when individual stocks stop rising and the overall market falls.The main players in the market have different understandings of the overall market. In the early stages of a decline, some individual stocks may still rise, but when the overall market falls and individual stocks stop rising, it is a good time to sell. When a stock in the same sector experiences a significant decline, it generally has an impact on other stocks.
2. Sell when individual stocks in the same sector fall.Once such signs are detected, it is necessary to decisively liquidate the holdings of individual stocks.
3. Sell when the market rises at the end.In the early stages of a downturn, some main players will work hard to protect the market and use a small number of large orders to recover the stock price at the end of the day, which is also a good time to reduce positions
4. Sell on a bullish candlestick.The large bullish candlestick in a falling market is often the main force shaking and reducing positions, and even if it is not a reduction, it cannot be sustained. The main force's upward movement will provide you with an excellent opportunity to escape. At this time, you must not be greedy or hesitate, as it will miss valuable opportunities.
