Striving for a rebound is very important in stock selection. We must not choose blue chip stocks with investment value but sluggish stock characteristics or low-priced large cap indicator stocks. We should pay attention to choosing speculative stocks with small circulation and active stock characteristics. At the same time, it is not advisable to choose obscure stocks with excessively low trading volume, in order to avoid operational errors due to inconvenient entry and exit. When a stock is found to have short-term speculation opportunities, attention should be paid to trading volume. If the bottom trading volume increases, it indicates signs of active main funds. At this time, the chances of following up are higher. To seize the rebound, two points must be seized: buying point and hot spot, and neither is indispensable. Below are some specific tips to pay attention to when quickly rebounding.
1. It is not advisable to operate at full capacity.
To seize a rebound in a weak market, it is necessary to choose an appropriate proportion of capital investment based on market environmental factors. It is not appropriate to participate in the rebound recklessly with heavy or full positions. Once the judgment is wrong, huge losses will be incurred, which is one of the key techniques for quickly seizing a rebound.
2. No profit expectations are set.
The rebound should be adjusted according to market conditions, and when the trend is positive, even if there are substantial profits, one can continue to wait; When the upward trend of rebound is hindered, even if the profit is meager or shallow, it is necessary to resolutely clear the warehouse and ship, and not let profit expectations constrain oneself.
3. Do not participate in the rebound when the trend is unclear.
When the downward trend of the stock market has formed or is running in the standard downward trend channel, investors should not rush to rebound. At this time, rushing to rebound is like taking a chestnut from the fire, and the gains are not worth the losses. It is a key technique for quickly rebounding.
4. Estimate the risk return ratio.
Before participating in a rebound, it is necessary to estimate the risk return ratio. When the risk of a stock rebound is much greater than the return, it is not easy to seize the rebound. Only when the expected return is much greater than the risk, is it suitable to seize the rebound.
5. Set a specific stop loss price and be mentally prepared for stop loss.
A rebound does not mean that the market has completely strengthened. When participating in a rebound, the principle of safety first and profit second should be adhered to. It is necessary to set a stop loss level, and when the stock price reaches the predetermined price, it should be sold immediately and decisively. How to quickly seize a rebound requires special attention to skills.