Firstly, it is necessary to always adhere to careful research from the three aspects of "trading volume, turnover rate, and trend line". For any short-term doubling stock, risk awareness should be established and taken seriously. If the trading volume surges, turnover rate continues to exceed 15% -20%, and the stock price hovers at a high level for more than two weeks and falls below the average line of 5, 10, and 20 days, it is necessary to gradually exit and observe. Stock trading strategy factory
Secondly, be wary of the main force creating fake breakthroughs. From the review data, we can see that during the peak period of the 998 market, the stock market experienced three important adjustments: "5.30", "6.20", and the National Day holiday. Many individual stocks have shown a "triple peak" on the technical candlestick. In the market rebound that began on December 18th, 220 stocks hit a historic high. However, we should also see that many stocks have experienced "false breakthroughs" during the process of crossing the threshold. For example, on October 31st, Shenzhen Vanke hit the historical resistance level with a limit up and reached a new high. Many technical experts were optimistic that the medium to long term huge upward space of the stock would be opened up and rushed to chase after it. However, in the following days, Shenzhen Vanke did not rise but fell, and even broke through the position. Even at present, the adjustment is still incomplete. It can be seen that the main force's fake breakthroughs in technology often represent a weakening of the intermediate market. There are many examples of such individual stocks, such as Hunan Investment on August 7, 2007 and Mount Taishan Petroleum on November 5, 2007. Stock trading strategy factory
Thirdly, be wary of the hunting behavior of "slow cooking frogs". This technique often occurs in highly controlled varieties by fund institutions. The sharp decline from 6124 to 1664 points is not achieved by many main players through "volume stagnation" to complete a big escape, but through daily volume reduction and implicit selling, "slow cooking the frog", which has caused many bulls to suffer greatly. Therefore, it is important to pay more attention to the behavior of a stock's price falling from a stagnant high, especially for a leading stock in a time period that has not recovered from its 5-day moving average for three consecutive days. A safe approach is to exit early before seriously "losing hands and feet". For example, 601088 China Shenhua on October 15, 2007, and Broadcasting Network on October 8, 2007. To judge the trend of a stock and measure its market performance, the principle of "if you are bullish but not bullish, you must sell; if you are bearish but not bearish, you should firmly buy in" mentioned earlier cannot be shaken, especially for short-term investors. Many people regret throwing themselves away too early, but they rarely think about the feeling of being trapped in a high position due to greed and hesitation. Stock trading strategy factory
Fourthly, pay attention to those varieties that actively rebound in the face of historically trapped areas, which indicates that the main force's willingness to go long is not firm. If the product being focused on still lacks growth potential as a guarantee, then when the rebound encounters important resistance levels, investors may want to reduce their positions first during the process of rising. For example, the resistance level I have repeatedly emphasized is above 8850 points in the Shenzhen Component Index. If the long-term attack fails to break through and the overall trend of the market turns around, they should gradually reduce their holdings or clear their positions.
Fifth: When there is a sudden large bearish line from top to bottom on the daily chart and it falls below an important platform, regardless of whether there is a rebound, no rebound, or when a cross star is closed the next day, the goods in hand should be sold out. Avalanche stocks always come out at the right time. In the continuous decline of the market, if the stocks held in your hands do not fall or slightly fall, you must stay alert and not take too chances. It is better to come out first, as there will always be times when stocks like this will make up for the decline and catch up with the bottom. Even if there is a rebound in stocks in the future, important support platforms in the early stage will become obstacles to short-term rebound and can also become the peak of intermediate rebound market.
Sixth: After the formation of the mid market bottom, individual stocks usually have a rise of about 30% to 50%, and some rebound leaders even have a 100% rise. Investors must remember not to be too greedy. Generally, when facing resistance levels in the early stages, many stocks may experience a certain degree of technical retracement. Do not easily believe in the instigation and temptation of experts. Once the trend line changes, it is necessary to pay attention to stopping as soon as possible and leave some of the final profits for those who are brave. Stock trading strategy factory.