Many investors invest in stocks for the purpose of making money. Stocks are a high-risk, high-yield investment, and due to the lack of understanding of the stock market, it is difficult for many investors to make buying and selling decisions for their competitors' stocks. I often hear a saying that goes, 'The apprentice who can buy, the master who can sell. The real skill is how to seize the opportunity to sell stocks at the high point.' So, you need to learn more to master the tricks, make progress every day, and build a tower. Below are several practical selling techniques introduced by Mingdeng.
1、 Four principles for selling stocks:
1. The principle of actively killing and selling. Of course, the premise of this principle is that in the event of a continuous bearish trend in a stock, if the main force intentionally shorts, it indicates a huge downward space and cannot predict its support level. The best way is to sell in a timely manner.
2. Selling principle when encountering a bearish candlestick. If a stock's decline exceeds 4% and there is no sign of turning back, it is necessary to guard against the risk of a bearish candlestick or even a limit down. When the momentum is not good, it is necessary to "break the arm of the strong man".
3. Sell principle when individual stocks or the overall market break through important support levels. At this point, it is important to pay attention to the effectiveness of the break. If it can quickly rebound after a brief break, it is considered a false break.
4. The principle of selling early rather than late. Decisive liquidation in the early stages of a decline is always the best choice. If you miss the selling opportunity, especially after a significant decline, you cannot easily liquidate your position, but wait for a rebound to reduce losses. If the rebound fails again, you can cut losses depending on the situation.
2、 Stock Selling Techniques
1. Moving average supports breaking levels
The moving average itself has the function of helping rise and fall, and the moving average system is of great reference significance in technical analysis. The moving averages we know of come with software, such as 5-day, 10 day, 30 day, 60 day, 120 day, and 250 day lines. Different investors choose to pay attention to different moving average periods based on their investment cycles. Short term attention on the 10th and 30th; Mid term attention for 60 days; Long term attention to the semi annual and annual baselines.
Because the moving average has the function of helping rise and fall, investors judge the duration and magnitude of the decline by assessing the period of the breaking average! The longer the period of breaking the moving average, the greater the magnitude and duration of the decline.
In addition, when dealing with strong stock investors, the moving average break cannot be used as a basis for operation, because strong stocks are far away from the moving average that investors are concerned about when they rise, and it is too late to consider selling stocks based on the moving average break, as stock prices often have already fallen by more than half. The usual correct approach is because the moving average has a characteristic that when the stock price moves away from the moving average to a certain distance, the stock price will definitely fall and shorten the intersection distance with the moving average. Investors can judge to sell based on the distance between the stock price and the moving average, as well as the trading volume.
2. KDJ exhibits a bipolar morphology
The two pole pattern of the KDJ indicator is also known as the peak operation pattern. In general, after a long period of time or forming a rapid unilateral trend, the market shows a trend of increasing volume or extreme reversal. At the same time, it is accompanied by classic technical characteristics, such as a K-value above 85 when jumping short of a star shaped candlestick, which is a typical signal of a peak. It should be noted that when the j value of the KDJ indicator changes direction and turns downwards, it can sell 50% first, prepare to sell when it is flat, clear when it turns downwards, and when a dead cross is formed, it is the final selling point.
3. Triple Death Fork Top Signal
Line shape description: After a round of rise, the stock price begins to build a head, and then slowly declines. The 5-day and 10 day average volume lines, 5-day and 10 day average price lines, and MACD indicator show a dead cross. Afterwards, the stock price accelerates its decline and begins a downward trend. This high-level resonance of volume, price, and indicator with short positions is called the triple dead cross peak.
The peak of the three death forks is the process of the main force selling, the bulls gradually weakening, and the bears gradually strengthening. When the stock price rises for a long time, market sentiment is high. In the early stage of the main force's shipment, due to active buying, the market reflects a slow rise or slight decline in the stock price. When the bullish atmosphere disappears due to the weak rise in the stock price, the main force's selling and stop loss orders compete to be eliminated. The volume and price level indicators form a three-way, and bears are established. The stock price begins to accelerate its decline.
4. Long upper shadow line
Compared to the solid part and the lower shadow, it is much longer. Meteor line is an extreme case of a long upper shadow line, which has no lower shadow line or a very short lower shadow line. It is a K-line shape with a peak or near peak in the frequency band.
5. 60 minute K-line top 'cross' never bought
The individual stock accelerated its rise and reached a high level, but suddenly within a certain 60 minute period, the bearish force began to gradually increase and was evenly matched with multiple parties, ultimately forming a "cross" trend. This candlestick pattern is mostly a short-term peak signal. If there is a large trading volume at this time, or if several 60 minute candlesticks gradually decline, it is more likely to prove the short-term head.
6. 60 minute bearish swallowing pattern
There are three criteria for judging the bearish swallowing pattern:
(1) Before this form emerges, the market must be in a clear and discernible upward trend.
(2) This form must consist of two candlesticks, with the second entity covering the entity of the first candlestick.
(3) The two K-lines that make up this form have the second K-line as the bearish line and the first K-line as the bullish line. After the formation of this pattern, it usually indicates that the stock price will enter the adjustment stage