Many people are inquiring about how to deal with trapped stocks. Being trapped may be a very reluctant yet helpless thing that every investor encounters. And no one dares to say that they will never encounter a situation of being trapped. Once trapped, not only will there be financial losses, but there will also be constant anxiety and suffering throughout the day. So how to handle it correctly? Here are some experiences:
1、 Treat imprisonment with the correct mindset. I think the reason for the entrapment is a thought-provoking issue for us. In addition to the overall market factors, it is largely due to investors not fully researching and engaging in unprepared battles, as well as problems with their investment philosophy. Doing a good job in stocks is not easy. In addition to researching and thinking more, it is more important to adjust one's mentality. An emotional person is destined to lose money in the stock market. So if you are trapped, don't be upset anymore. If you analyze and think that there is no need to hold the stock, then settling it as soon as possible is undoubtedly a way to let go of a heavy psychological burden.
2、 Recognizing the current stage of the stock market, it is important to actively seek solutions after being trapped, as the timing of market entry and exit is crucial in the stock market, and following the trend is always a prerequisite for success. If the momentum of the market's upward movement is insufficient in the future, it is of practical significance for individual stocks that have been fully hyped up in the early stage to choose the current level as the timing for exiting the market.
3、 Identify the stage of individual stocks and adopt different strategies to trap them. We should try to avoid stocks that sell and buy stocks that are trending upwards. If we have already bought and shipped individual stocks, we must have the courage to cut our wrists and strike them with one blow; And individual stocks that are not shipped will be held tightly.
There are several methods to determine shipment:
1. If the stock price is already at a high level and there have been 1-2 large main uptrend waves in the early stage, the volume can shrink significantly after the stock price reaches a new high. Then, using the high-level sideways trend, slow distribution should be made. When the stock price breaks the 20 day moving average downwards, caution should be exercised; If the distance between the 20 day, 40 day, and 60 day moving averages is close, one can decisively exit when breaking through the 40 day moving average.
2. After the stock price is ex dividend at a high level, it uses visual illusions to lure followers and achieve the goal of selling. On the candlestick chart, it generally shows the phenomenon of excessive trading or stagnant growth due to excessive trading volume.
3. Stocks with increased shock amplitude indicate that the main force is using the large shock amplitude to attract followers.
4. Stocks with abnormally large trading volume. This type of stock is most likely to trap newly entered investors, giving people the illusion of trading for stocks in large quantities, thus hiding the true intention of the main force to sell.