Observing the overall trend of the A-share market over the past 20 years, it can be found that the stock market has been fluctuating and consolidating within a certain range for most of the time. In a volatile and consolidating market, investors can adopt a "guerrilla warfare" strategy in their investment operations to become market winners. The so-called 'guerrilla warfare' method is based on the assessment of the situation, seizing opportunities, following the right rhythm, and flexibly implementing band operations.

Assessing the situation and seizing three opportunities

Firstly, seize the opportunity driven by policies. Various policies at different levels affect the trend of the overall market and individual stocks. It should be noted that policies not only have macro and micro differences, but also have different levels of intensity. Investors need to make corresponding investment decisions based on the different policy situations in their operations. Secondly, seize the opportunity of sharp decline and oversold. Finally, seize the opportunity of the box's operation. Experienced investors know that the construction of candlestick patterns often exhibits certain regularity, such as the overall market or individual stocks operating within a certain box over a period of time. Investors can use this trajectory to engage in "guerrilla warfare": buying along the lower edge of the box and selling along the upper edge of the box.

Seize the opportunity to select individual stocks

The quality of stock selection determines the success or failure of investment and affects the level of returns. So, to fight a good guerrilla war, selecting individual stocks is the foundation, and we must put in more effort, compare repeatedly, and make careful choices.

Choose stocks with good fundamentals, confirmed performance growth, and oversold. Performance is the foundation of stock prices, and prices always fluctuate around value. Firstly, when selecting stocks, attention should be paid to selecting those stocks that are supported by policies, have a high level of industry prosperity, and have sustained growth in performance. Although they may also fall with a significant decline in the overall market, once the market warms up, these stocks with good growth potential that have been "mistakenly killed" will be discovered by the main force, and their stock prices will continue to rise. Buying when the stock price oversold will naturally yield satisfactory returns.

Choose individual stocks with continuous capital intervention in the early stage and sufficient correction. Due to the overall sluggish market situation, the main funds have taken advantage of the situation and continuously sold and bought these stocks high and low, reducing the cost of holding positions; Or take the opportunity to wash up the market, suppress stock prices, and continue to collect chips.

Choose stocks with high net assets, housing provident fund, and undistributed profits, which are expected to have a high dividend plan in the annual report. Before and after the release of the annual report, these stocks will always be sought after by some investors, leading to a wave of speculation. So, mastering this speculation pattern, carefully searching for such stocks before annual reports, and grasping the timing of entry and exit, is also one of the tricks to win the "guerrilla war" in the stock market.

Control risks with three taboos and three suggestions

To fight a good "guerrilla war" in the stock market, risk control must be given top priority. Based on grasping the timing of entry and exit and selecting individual stocks, efforts must be made to improve the chances of winning the battle. In specific operations, the following points should be noted.

It is advisable to buy low and avoid chasing after the rise. It is advisable to keep light warehouses and avoid heavy warehouses. Position control is an important means of avoiding risks. It is advisable to enter and exit quickly, and avoid being obsessed with battle.

Five essential skills to learn

The most important thing in a volatile market is to determine it, which occurs when there is significant pressure above and strong support below.

2. The most important aspect of a volatile market is stock selection, which can be approached through several strategies: strong stocks, stocks that are aligned with the overall market. The simplest way is to synchronize with the market, as long as you operate properly, you can seize short-term opportunities for price increases.

3. The most important thing in a volatile market is to sell high and buy low. Not everyone can catch strong stocks, but everyone can buy ordinary stocks. The volatile market is mainly based on technical indicators, which is actually a combination, but as long as one of them is used, it can easily reach the top and bottom, KDJ， When the 60 minute J value exceeds 100, unless you are a strong stock, it is definitely the top area. When the 60 minute J value drops below 0, it is definitely the bottom area. With a check, you can buy and sell. Of course, this system is clearly not sophisticated enough, but it is sufficient for use.

4. In order to prevent sudden rises and falls in volatile markets, half of the funds should be reserved for price differentials, and positions cannot be fully filled at all times.

5. A volatile market is often a continuation of a trend, but if the volatility lasts too long, such as more than 3 months, then the probability of a turnaround is high.