【 Stock Trading Tips 】 Eight Practical Techniques to Prevent Being Trapped in Stock Trading

Tip 1: Buy stocks rationally

As the saying goes, only by not fighting unprepared battles can one stand invincible. Every stock investor needs to be prepared when buying any stock, understand the company's performance, market conditions, and price increases, and then choose stocks rationally based on their own situation. They should not blindly buy stocks, nor should they follow the trend.

Tip 2: Set the stop loss point when entering the market

Stop loss! Stop loss! Stop loss! Although investors are aware of the benefits of stop loss, many find it difficult to achieve. The main reason is also due to the mentality of luck, always wanting to wait a little longer and take a look. In addition, the fluctuation of stock prices also makes investors hesitant. We suggest setting a stop loss point when entering the market to avoid significant losses.

Mnemonic three: Please pay attention to sudden increase in volume

A stock price drop is not scary, but a sudden increase in volume is even more scary. If a stock suddenly increases in volume, the stock price will also rise. However, if you encounter a situation where the market maker is selling and the trading volume is increasing, while retail investors are desperately buying, then you need to pay attention or sell quickly.

Mnemonic four: Please refuse the middle yin line

If you find that the stock market has a high opening and low closing trend with a bearish candlestick at the end of the day, it is recommended to sell at this time. Because once a bearish candlestick appears, it may trigger mid line holders to panic and sell a large number of stocks. Especially for stocks that have been performing well, if their decline is above 7% or their amplitude is above 15%, they should be cautious.

Mnemonic five: research on technical indicators, please make more mistakes

When trading stocks, one should learn to study technical indicators, which can help investors grasp the trend of stocks and control them. Once they discover that the market is not good, they should immediately sell. However, there are too many errors in the research of technical indicators. It is recommended to specifically study one technical indicator and thoroughly understand it.

Formula 6: Please do not touch the problematic stocks

The so-called problematic stocks refer to those stocks that are problematic, such as those with irregular annual reports, poor performance, exposed insider operations, and numerous manipulators. For this type of stock, please intervene cautiously and be vigilant at all times.

Tip 7: Do not be loyal to any stock

It is almost normal for stocks to rise and fall sharply, as there are no stocks that do not fall or rise. Don't be too loyal to any stock, it's a fatal flaw. If you see that the stock situation is not good, please cut your losses and sell it decisively.

Mnemonic eight, please don't believe hearsay

In the stock market, do not use rumors and insider information as a reference, and do not completely trust so-called experts, stock analysts, expected brokers, etc. Investors should grasp the operating rules of the stock market, base themselves on the intrinsic value of the company, and then choose the appropriate buying price, without being sacrificed by the market makers or being harvested by them.

The stock market carries risks, which is inevitable. But in the stock market, investors who often fail repeatedly and lose money are basically these people: first, greedy people; second, people without independent opinions; third, people who cannot choose stocks; fourth, people who dream of getting rich overnight; fifth, people without any technical skills. If you are such a person, please be cautious when trading stocks. It is recommended to invest in low-risk fixed income investment products to ensure stable returns, which is much better than investing in the stock market, repeatedly losing money, and giving money to Zhuang Jiaqiang.

Disclaimers

The articles, data, and other content on this website are purely the personal opinions of the author/analyst and are for investors' reference only. They do not constitute investment advice. Investors operate based on this and bear the risks themselves.