In stock market operations, we often encounter the embarrassment of chasing after stocks as soon as they rise, then being trapped at high levels, and decisively exiting stocks as soon as they fall. Then, the stock price stabilizes and begins to rise again. The reason for this is that they did not master the skills of chasing after the rise and killing the fall. So, what are the techniques for chasing gains and killing losses?
1、 To observe the overall trend, it means to see who has the advantage in the long short battle of the entire market. Chasing the rise and killing the fall must meet the following conditions:
1. The market is in a strong trading pattern. The strong pattern endows individual stocks with a good operational foundation; On the contrary, if the market is in a balanced or weak pattern, it is not suitable to chase after the rise and kill the fall. Balancing the market is suitable for high selling and low buying, and taking a wait-and-see approach in a weak position is a wise move.
2. The market has formed distinct hotspots or sector effects with sustained upward potential.
2、 Attention should be paid to the selection of the target of operation when chasing gains and killing losses.
1. When the market forms a distinct sustainability hotspot, it can chase up this hotspot. In theory, as long as we grasp the hot sectors, we can make profits. However, I believe that when chasing after the rise, we should focus on the leading varieties. Generally speaking, the leading stock variety is the most valuable stock for operation, especially when the leading stock weakens.
The entire sector will also weaken, and the leading varieties can provide investors with an opportunity to exit unscathed, with the largest increase in the leading varieties. Stocks that have formed a clear upward trend can consider chasing after the rise. When a stock breaks through important pressure lines, such as the neck line of the head, shoulder, and bottom shape, the top position of the box, the upper eye of the triangle, and the long-term downward trend line, after confirming the effectiveness of the breakthrough through pullback, it can be considered to chase after the rise.