We all know that stock trading is truly skillful, and China's stock market is so unique. Below, we will share some tips and experiences of old stocks earning tuition fees.
Tip 1: Regarding stop loss and take win issues. The setting of stop win and stop loss is particularly important for non professional investors, as many retail investors may set stop loss but not stop win. Everyone knows about the establishment of stop loss, setting a fixed loss rate and strictly enforcing it when reaching the position. But stop winning, most retail investors don't.
Tip 2: Don't expect to buy at the lowest point, don't expect to sell at the highest price. A friend always wants to buy at the lowest price and sell at the highest price, but that's impossible. People who have this idea are not experts. Only the market makers know to what extent the stock price may rise or fall, and they cannot fully control the trend, let alone you and me.
Tip 3: Matching Quantity and Energy. Some stock analysts always talk about price increases and volume increases. After years of summarizing, I believe that stocks that have reached new highs without quantity should be given special attention, while stocks that have reached new highs with abnormally high volume should be cautious. Short term stocks that experience a more significant pullback as they fall should be a good opportunity for a rebound, excluding stocks that have fallen to the board and stocks that have experienced heavy volume declines at the top.
Tip 4: Make good use of associations. What is Lenovo? Based on a certain market reaction, make associations and obtain short-term gains. Generally, mainstream leading stocks are often quickly pulled up to the limit up by hot money, and short-term experts often cannot catch up. At this time, Lenovo can often give you unexpected surprises.
Tip 5: Learn to hold empty positions. There are many folk experts who are good at using funds for short-term operations to chase up and down prices, sometimes achieving high returns. However, for non professional stock investors, it is difficult to watch the market every day and track hot topics every day. So, in stock trading, not only do you need to buy stocks that are trending upwards, but you also need to learn how to go short. When you feel that stocks in the market are difficult to operate and hot topics are difficult to grasp, the vast majority of stocks have experienced significant declines. Stocks on the rising list have little increase, while those on the falling list have a large decrease. This requires considering short positions, sometimes for several days, sometimes for several weeks, and sometimes for several months. Although there will always be stocks that rise against the trend no matter how the index falls, who can guarantee that those few stocks are the ones you bought? It is safer to operate at full position when the market is easy to operate. Although short positions may lose some opportunities, they are very suitable for non professional investors.
Tip 6: A sharp drop is a significant opportunity. A sharp decline can be divided into a general market crash and individual stock crash. The chances of a bearish decline are much fewer than a sharp decline, which often presents significant opportunities. During my years of stock trading, the market often experienced 2-3 sharp drops each year. A sharp drop is often caused by major bearish or accidental events. A sharp drop that occurs at a relatively high point in the market should be treated with caution. However, for a sharp drop that occurs after the main downtrend or a long period of bearish decline, you should pay attention to the stock, because many bull stocks have the opportunity to fall out.
