1、 What is bottom fishing?

Bottom fishing refers to the operational strategy of using some stubborn indicator to measure the stock price falling to the lowest point, especially buying when it falls sharply in a short period of time, and expecting the stock price to rebound. But what is the 'cheapest' price? If you buy stocks at the bottom, how can you buy dark horse stocks?

2、 What are the characteristics of stock bottom fishing?

For determining the bottom by observing the candlestick pattern in practical use, ordinary investors can mainly grasp eight characteristics, and even memorize them like mathematical formulas. Because looking back at the historical trends of the market over the years, and even the bottom regions of different markets in various countries around the world, it can be almost proven that the following patterns are common to mid - and long-term bottoms. Therefore, based on this judgment, the accuracy will be quite high.

1. The total trading volume continues to shrink or is in a historical volume range;

2. The weekly and monthly candlesticks are in the lower range or the lower track of the long-term upward channel;

The list of 3 price increases and decreases is arranged in an olive shape, with the maximum increase of about 3% and the maximum decrease of only about 3%. The vast majority of market varieties are in a state of slight increase or decrease;

The lower the index deviates from the annual line, the greater the possibility of a bottom. Generally, when there is a sideways resistance or V-shaped turn at a position far from the annual line, at least the intermediate stage bottom has been clearly established;

5. Although hot sectors are active from time to time, indicating the operation of funds, there is a clear lack of lasting effects, and there are no phased leading or falling varieties;

Any slight bearish sentiment on the news surface can quickly stimulate the market to move towards the bearish candlestick, indicating that market sentiment has reached its limit of fragility;

7. A considerable number of stocks have stagnant trends, with significant differences in buying and selling orders. Test 100 shares at buy 1 and buy 2 prices, with a very low transaction rate;

3、 The principle of bottom fishing

1. Be sure to participate in bottom trading and not passively wait for bottom trading. It's about boldly engaging in left side trading to buy bottom;

2. Don't make money, don't add positions! Don't be afraid of the failure of bottom fishing on the left side of the trade. If you don't make money, don't increase your position. If you lose money, stop loss. What are you afraid of!

3. Don't be greedy for profits from left-hand trading: If you choose right-hand trading, don't be greedy for profits from left-hand trading and don't chase after price increases

（1） How to choose target stocks for bottom fishing?

When the market has a bullish signal, investors can prepare to buy at the bottom. So what kind of stocks should they choose? Let's explain from five aspects.

1. Policy level of benefit: In general, if the technical and policy aspects of the benefiting sector resonate, individual stocks can usher in great opportunities.

2. Degree of attention to funds: Based on the nature of the main force of funds following expectations, the stocks that are being monitored by funds will definitely be displayed on the market. Investors can confirm the development trend of stocks through technical judgment. Once it is confirmed that the stock price has bottomed out, they can intervene decisively

3. Concept situation of individual stocks: As long as the concept itself is sufficient and not digested, there are opportunities for speculation, especially when the market bottoms out. The concept stocks with larger declines before have stronger rebound strength

4. Is there an expected improvement in performance

5. Technical bottoming out: Some stocks may take a long time to truly confirm their bottom, and some stocks may even arrive much later than the overall market bottoming out. That is to say, when the market hits bottom and we choose a stock, we must first confirm that it is already at the bottom, only then can we make a buying decision, otherwise any buying is blind and full of risks.