Going against the trend requires a certain level of intuition and in-depth analysis, as one may fall into traps if not careful. It is important to be cautious when operating, and it is best to learn from the successful experiences of experts to avoid detours and minimize economic losses; I have always been a stock trader who tracks the operations of the top stock experts in the Kuofu Jiantou stock trading software, and I feel that it is quite good. This is also much more secure.
Under what circumstances can stocks be considered for buying down?
1. Sometimes some stocks drop by 20% or even 50% from their high point, and their prices drop from hundreds of yuan to tens of yuan, but they never increase their volume until they drop by 50%. When buying at this time, be sure to stay away from the trading area.
2. When studying stocks that have fallen, long-term moving equilibrium lines can be used for research, or other techniques can be used to determine oversold stocks. When it dropped by 50%, there was a significant increase in volume, with a 20% or even 50% drop.
3. When the limit of the pullback consolidation is 10% to 20%, the general limit of the pullback price is equivalent to 88% of its highest price. Many strong bull stocks possess such characteristics. And for those stocks with fierce main forces, the maximum price drop is usually around 20%, that is, the lowest point of the price is roughly equivalent to 80% of the highest price. At this time, it is the early stage of the bull market when stocks fall back. In this case, only stocks with suddenly smaller trading volumes after the decline have a chance.
4. When a decline occurs, the first drop for most stocks from their highest price is 20%, and some usually exceed it. Therefore, stocks with a decline of over 20% should be observed as targets. The subsequent target is usually 33%, and further on, it is 50%, 67%.
In a major market downturn, the first choice should be the series of stocks with the largest decline. Especially those individual stocks that hover after a decline of 20% or 33%. The Four Stage Theory of Market Decline. When a decline occurs, the first drop for most stocks from their highest price is 20%, and some usually exceed it.
Therefore, stocks with a decline of over 20% should be observed as targets. The subsequent target is usually 33%, and further on, it is 50%, 67%. In a major market downturn, the first choice should be the series of stocks with the largest decline. Especially those individual stocks that hover after a decline of 20% or 33%.
If a stock or sector is severely overdrawn and hyped, with a stock price increase of more than 200% for more than a year, and once a bear market strikes or major institutions sell, in principle, it should not be bought within one year from the day of peak, and should be brought into view within two years. It should be noted that such stocks generally do not have significant market trends within two years after reaching their peak.
The strategy of chasing down stocks by the stock data cat is strictly defined: buying stocks in a predetermined chasing pool that have fallen by more than 7%.