Stock swap often means cutting off the meat first. Some friends are afraid of the pain and hesitate to take action, holding onto the stocks in their hands and waiting for a solution. In fact, if the stock swap is appropriate, it can not only timely cut off the "sore" and avoid further losses, but also bring in fresh blood and lay a solid foundation for turning losses into profits. However, when switching stocks, the following tips need to be mastered:

Tip one: Long term bear stocks should be resolutely liquidated

Usually, it is advisable to firmly clear out long-term bear stocks that have gone down the wrong path. Once the long-term main force of a major stock in history leaves and its stock price reverses downwards, it is waiting for a long bear road with almost no possibility of being released within two or three years. Therefore, it is necessary to clear its position as soon as possible. This type of stock, which is critically ill, is suitable for "flesh cutting therapy". Failure to cut flesh in a timely manner can only lead to the rapid spread of "cancer cells".

Tip 2: Follow the rotation pattern of sectors for stock swaps

Plate rotation is an inherent law of the stock market, where the timing of each sector's launch, rise, and peak is not consistent, and often follows a certain order: one sector has just started, while another sector has already peaked and retreated. Therefore, it is advisable to switch in stocks that have fully bottomed out and out stocks that are still in the middle of a decline. Stocks that fall first rebound, while those that fall later bottom out, so when switching stocks, it is necessary to follow the pattern of sector rotation. For example, technology stocks and restructured stocks often play a seesaw game, where one sector is at a high point while the other is at a low point. Grasping these patterns is beneficial for us to avoid risks and seize opportunities.

Tip 3: Don't easily chase hotspots in weak markets

Some investors often fall into a trap when switching stocks. The so-called serial trap refers to the situation where the first share is trapped and then replaced by the second share that has just been replaced. The most important thing to avoid being trapped in a chain is not to easily chase hot spots in a weak market, because hot spots in a weak market are often short-lived and can be trapped in short-term highs if one's hands and feet are slightly slow. In addition, do not easily switch to stocks that are resistant to decline or strong stocks, because in a round of intermediate adjustment market, almost all sectors and individual stocks have the possibility of falling. Today's resistant stocks and strong stocks are likely to become tomorrow's diving stars. Do not replace the deep set of A-shares with the "resistant stock B-shares" set, which will only make you enter the tiger's den after just leaving the wolf's den.

Tip 4: Do not replace in homogeneous stocks

The so-called 'homogeneity' refers to individual stocks with similar sectors, industries, and themes, which often have similar trends. Trading in homogeneous individual stocks is not beneficial for solving the problem.