How to chase the rise and kill the fall? What are the techniques for chasing the rise and killing the fall?
During the period of stock market rise, it is often the rotation of sectors and hot topics, and not always a part of stocks keep rising, which provides a good opportunity for chasing after the rise strategy; In the stage of stock market decline, selling stocks in a timely manner is an effective way to avoid losses, and there are also some empirical rules to follow for which type of stocks to sell down. How to chase the rise and kill the fall? What are the techniques for chasing the rise and killing the fall?
1. Chase up strong stocks during the trading session. During the trading session, chase after stocks that rank high on the increase chart, volume ratio chart, and commission ratio chart. This type of stock has already started a new round of market trend and is a key target for investors to pursue short-term gains.
2. Chase up leading stocks. The main technique is to select the leading rising stocks that are launched first among various sectors based on industry, region, and concept, which is the key technique for chasing up and killing down.
3. Stocks that have successfully broken through in pursuit of rising prices. When a stock forms a breakthrough trend, it often means that the stock price has opened up upward space. With a significant reduction in resistance, it is more likely to experience a strong upward trend. Therefore, the position where the stock price breaks through is often the best position to chase after the rise.
4. Observe the increase in stock prices. This is one thing to pay attention to when chasing gains and killing losses. A stock has recently risen significantly, by 100% or more, and should exit immediately if there are signs of a decline.
5. Look at the high turnover rate. If the stock has risen significantly, and the turnover rate of this stock reaches 20% or more on a certain day, and it remains stagnant due to high volume, it indicates that the people who want to exit this stock have a strong desire. If there is a decline, they should promptly strike down.
6. Observe the arrangement of moving averages. Once the 5-day moving average crosses the 10 day moving average or the moving average shows a bearish trend, it means that a downward trend has formed and should be eliminated quickly.
Overall, chasing gains and killing losses is a highly empirical short-term operation that is suitable for experienced veteran investors. Books generally cannot provide a quantitative and qualitative analysis of chasing gains and killing losses, nor can they provide a universal model.