Stock swap is an active strategy for resolving conflicts, and when used properly, it can effectively reduce costs and increase opportunities for resolving conflicts. Once operational errors occur, investors can also fall into the dilemma of being slapped on both sides, so they need to be very cautious when switching stocks. So, what are the specific methods for stock swap and what principles should be followed?

Stock exchange method

1、 Replace 'strong' with 'weak'. The main capital operation of a stock can be roughly divided into several stages, such as attracting funds, washing funds, raising funds, selling, and exiting. When a stock has completed the main upward wave and the main force has basically sold out, its upward momentum will dissipate. Even if it is in a sideways position at a high level, it is only at the end of its strong momentum, and the upward space is relatively small. At this point, investors may choose relatively "weak" stocks that are currently in the main fundraising period.

2、 Replace 'weak' with 'weak'. It is to exchange the weak stocks that have been completely abandoned by the main force for the weak stocks that new main force funds have entered. Because the former is like a free fall in a weak market, with an unpredictable bottom, even if the market strengthens, the rebound is often weak and there will be no outstanding performance in the entire market. The latter, due to the entry of new main funds, although its performance is currently average, will eventually see a bottoming out and a strengthening trend.

3、 Replace 'strong' with 'strong'. Some stocks, after a rapid rise, are about to or have already entered a high-level consolidation, while others may only rely on inertia to rise. However, investors' enthusiasm for chasing the rise is clearly not high, and there are signs of volume stagnation in the market. At this point, investors should promptly replace it with stocks that have just started and are about to enter a period of rapid growth.

follow a principle

1、 The principle of prioritizing quantity. Leave a stock with high volume at the bottom and replace it with a stock without volume at the bottom. Because stocks with no volume at the bottom generally have a weaker trend than the overall market, even if they are selected by the main force in the future, they will be pushed down by the main force before building positions to attract more funds. Even if the main force has already entered the stock, if there is no increase in volume at the bottom, it means that the main force has already absorbed enough chips and is likely to distribute them during the rebound, and the future upward space will not be large.

2、 The principle of active stock ownership. Some stocks have low trading volume and turnover rate throughout the day, fluctuating only around a few cents a day. These are typical niche stocks. If investors have such stocks in their hands, they should sell them early and exchange them for stocks that are currently in the mainstream sector, have active trading, high market attention, but have not yet seen significant gains.

3、 Abandoning the principle of "old" and retaining the principle of "new". Recently, due to the continuous sharp decline in the stock market, some new stocks have not paid much premium or even approached their issue price, making their valuations reasonable. But these new and sub new stocks have not been expanded, and the circulation is relatively small, making it more likely for the main funds to control the market. So, some newly listed stocks that have not been wildly speculated on for a long time are easily trapped in the market, which can easily stimulate the enthusiasm of mainstream funds for speculation.

4、 The principle of exchanging "low" for "high". There are several advantages of low-priced stocks. Firstly, they are easily overlooked by the market, and their investment value is often underestimated by the market; Secondly, low-priced stocks have relatively limited room for further decline due to their low absolute prices, especially in the A-share market. Due to the lack of exit mechanisms, very few listed companies go bankrupt, so the risk of low-priced stocks is relatively low. If it is a low-priced stock that has fallen deeply from a high position, it is far away from the concentrated area of upper traps and has a certain potential for upward movement. The price of high priced stocks themselves implies high risk and faces significant adjustment pressure. Therefore, when converting stocks, it is necessary to exchange for high priced stocks and retain low-priced stocks.

precautions

When investors switch stocks, they should keep in mind the following points:

1、 In weak markets, the duration of hotspots is generally not very long, so do not blindly pursue hotspots, and be sure to analyze market fluctuations.

2、 Be cautious of resistance stocks during market adjustments, as resistance stocks in weak adjustments are likely to be abandoned by main funds when the market strengthens.

3、 Don't chase after high stock swaps, because in a weak market, you don't have to worry about not having good buying points. You need to learn to wait for short positions.

4、 When converting stocks, it is important to consider individual stocks with high growth, small cap, low price, second tier, strong capital expansion ability, and diverse themes.