Selling stocks is the most difficult thing, to some extent, when to sell stocks is even harder and more important than when to buy stocks and what kind of stocks to buy. Although there are various theories about the target price of stocks, generally speaking, investors can grasp the following points:
To achieve maximum returns in the stock market, it is crucial to grasp the selling points of stocks. There are two typical situations here:
1. If you buy the right stock, you won't be able to grasp its selling points. Not only will you fail to hold onto the hard won fruits of victory, but you may even take a gamble on it when it falls, thinking to yourself, 'I didn't sell when I made a profit, but now I'm flat or losing, I just won't sell.' As a result, what was originally profitable turned into a loss.
2. Buying the wrong stock can lead to a decline. If you don't set a stop loss point before buying, there is a risk of being severely trapped. What was originally a short-term strategy may unknowingly turn into a long-term strategy, resulting in significant losses and wasting opportunity and time costs.
How to sell stocks
1、 Early resistance level:
The so-called early resistance level refers to when the stock price approaches the early resistance level, if there is no further momentum to increase, the difficulty of crossing this resistance level will be very high, and investors may want to exit or reduce their positions. During the process of stock price movement, the formation of each high point has its own special reasons, and once this high point is formed, it will have an extremely important effect on the subsequent stock price movement of the stock. Firstly, the chips trapped near the point will have a demand to be released when the stock price moves again to this point. Secondly, investors will develop psychological fear when the stock price moves to this point, and the pressure of profit taking will also increase accordingly.
Therefore, if the early resistance level, especially the important resistance level, has not been effectively broken through, or if investors have doubts about the pricing of the stock at this time, they can consider reducing their holdings. If they happen to be at the high point of the market, it is necessary to exit.
2、 Has the market peaked
Under normal circumstances, the linkage between individual stocks and the overall market is still very strong. The probability of making money by buying stocks when the market is in an uptrend is much higher than when the market is in a downtrend. If the market reaches its peak, about 90% of stocks will sink accordingly. Therefore, determining whether the market has peaked is an important indicator for considering whether to sell stocks.
There are several points to note when operating in this way. Firstly, one should have a certain degree of confidence in the signs and signals of the market peaking. Secondly, one should bear the risk of another 10% of stocks that do not follow the performance of the market continuing to rise at this time. in other words. This method requires the ability to look at the overall market, and also requires the courage to be willing.
3、 Measure whether the increase reaches 50% or 100%.
As for the method of measuring the increase, there are several special features:
Firstly, this method is not applicable to all stocks and is generally more effective when used on strong stocks;
Secondly, the starting point for measuring stock price increases needs to be handled carefully. If you cannot grasp it well, it is best not to use this method, otherwise it will mislead yourself or others.
Three forms of K-line
Three types of K-line escape within 60 minutes.
1、 The 60 minute candlestick fell below two bound moving averages with high volume. When the stock price rises for a period of time, the candlestick pattern at a relatively high level indicates that the brief stalemate between long and short sides has been completely broken, and the short side has begun to take the initiative. Multiple parties have started to flee, making it difficult to organize an effective counterattack in the short term. Therefore, the stock price will further decline under the active selling effect. At this point, it is necessary to sell decisively to avoid the risk of sustained stock price decline.
2、 In 60 minutes, the volume can be mixed with a large negative and a small positive, while breaking the average volume line. When the indicator is at a high dead cross, sell firmly. When a stock has experienced a period of rise and the 60 minute candlestick has been sideways for a long time, if the stock price falls below the 5 unit moving average, it should be highly alert. This trend is likely caused by the main force's own escape, and then the 60 minute volume can form a bearish cannon trend, while breaking the average line and forming a dead cross. It should be decisively chosen to sell.
3、 Sell stocks when the 60 minute candlestick falls below the 5-unit moving average and does not return for 2 hours. At this point, the stock price has already started to weaken, and continuing to hold shares will carry significant risks, so the first choice is to place an order for safety. If the escape is not timely, you can also wait for the subsequent technical pullback. When the pullback occurs, the slope of the 5-unit moving average begins to slow down, indicating that the pullback has reached a technical high point and you should leave decisively. Compared to the first selling point, a second escape opportunity may not appear, so most of the time, it is still advisable to sell decisively at the first selling point.
Finally, I would like to remind everyone that if you haven't made any money in the stock market, it's definitely because you don't have a good set of methods. In fact, as long as there are good methods, making money in the stock market is a very easy thing!
