Rebound refers to the phenomenon where the stock price temporarily rebounds due to the rapid decline in the market, supported by the buying side. In stock investment, many investors like to operate during the rebound market. Although the rebound market contains abundant profits, it also carries high risks. Stock investors need to understand their opportunities and risks, take action, and even more importantly, refrain from taking action. So how can we accurately seize the rebound and make profits in the rebound market?

Three tips for rebounding:

1. Buying Tips

Seizing the rebound requires seizing the buying opportunity. Seizing the rebound too early can easily lead to being trapped; If the rebound is too late, you will miss the buying price and the opportunity. The principle of not chasing high prices should be adhered to in order to seize a rebound, as it carries certain uncertain risk factors. Blindly chasing high prices can easily put oneself in a passive position. Buying some oversold stocks after a sharp decline on dips can give oneself the initiative to enter and exit freely.

2. Selling techniques

Many investors are often confused by the sudden surge in rebounds, thinking that a new round has begun. Although there have been precedents in history where rebounds eventually evolve into reversals, the probability of occurrence is very small and often requires the cooperation of multiple factors in the market environment. The vast majority of retaliatory rebounds will encounter resistance and fall back at a certain important position. When the rebound approaches the resistance level, caution should be exercised. Investors who are short should not chase after the rise at will, and profitable investors should take profits in a timely manner.

3. Stock selection skills

Striving for a rebound is also important in stock selection. It is not advisable to choose blue chip stocks with investment value but sluggish stock characteristics or low-priced large cap indicator stocks. Attention should be paid to choosing speculative stocks with small circulation and active stock characteristics. At the same time, it is not advisable to choose obscure stocks with excessively low trading volume, in order to avoid operational errors due to inconvenient entry and exit. When discovering opportunities for short-term speculation in a stock, attention should be paid to trading volume. If trading volume increases, it indicates that the main force has already been mobilized, and the chances of following up are higher.

5 situations that are not suitable for rebounding:

1. Overloaded positions are not suitable for rebounding

When fighting for a rebound, it is necessary to control the proportion of funds invested, neither heavy positions nor full positions. If investors with already heavy positions rashly participate in the rebound market, they will easily face a passive situation of being completely trapped.

2. Not setting a stop loss is not advisable to seize a rebound

The rebound market not only provides opportunities for speculation, but also indicates that the market has not yet fully strengthened. When participating in the rebound market, we should adhere to the principle of safety first and profit second.

3. Weak establishment is not suitable for seizing rebound

When the market is in the early stages of a bear market, there is still significant room for further decline in the future; Alternatively, when the market trend is running in a clear downward channel and the market is extremely weak, it is not advisable to rush for a rebound.

4. Controlling old and traditional Chinese stocks is not advisable to seize the rebound

This type of stock, whether or not it has experienced a deep correction, is not suitable for a rebound. After long-term operation, the cost of controlling the stock market is extremely low for the market makers. Even after a significant drop, the market makers still have huge profits to make.

5. Falling and increasing volume are not suitable for seizing rebounds

When the stock price has been continuously declining for a long period of time and the market is nearing its end, it is advisable to choose stocks with unlimited short positions to rebound, rather than stocks with large volume declines.