How long does the stock market operate in a trading band? How important is the frequency band and practical skills

 1、 How long does the stock market operate in a trading band?

There is no specific rule on how long it takes for stocks to fluctuate, and the analysis mainly depends on the stock trading style of investors and the stocks they hold.

If you like to engage in ultra short term trading, the starting point for stock trading is to choose strong stocks as the main focus. Stocks with large fluctuations are best held for 1-3 trading days if you want to engage in ultra short term trading, because the stock price changes too quickly and there are too many uncertain factors, so you can only make quick decisions.

If you are a steady investor, you usually participate in relatively gentle stocks, buy low and sell high, and make confident small wave operations. I think holding a stock for a period of 2 weeks to 3 months is better for this type of investor, because any less active stock in this period can have certain opportunities for fluctuations.

Of course, in addition to determining the holding time of a stock based on the investor's style, it is also possible to calculate the trading period of a stock based on its individual stock situation.

If you hold stocks with a downward trend and just want to make a oversold rebound and make a small profit, it is generally better to hold these stocks for 2 trading days. The deeper you hold stocks with a downward trend, the faster you can make a quick decision.

If you hold stocks in the sideways phase, you should not hold them for too long because they are balanced between long and short positions. Stocks that perform sideways trends are usually in small bands, completing one band between 10 days and 1 month.

If you hold stocks with an upward trend, the holding time can be adjusted accordingly. Stocks usually rise by the limit up, and it usually takes 3-6 trading days to complete a trading band before entering a washout period. All holdings of this type of stock depend on whether you want to hold it for a few trading days. If you want to hold it for the medium term, it is better to hold it for about 1 to 3 months. The best time to finish eating the main rising waves is usually one year.

  2、 How important is the frequency band?

Band operation is more important than finding dark horses. In every year's market, there are main peaks and valleys, and the peak is an opportunity to sell; The trough is an opportunity to buy. Wave band speculation is easy to grasp, which is for the overall market.

Many stocks have a certain frequency band. We carefully analyze and judge some stocks, and then determine their value range. When they are far above the value range, the market will experience downward pressure, and then we can sell them; When the stock price enters the undervalued zone, buying at a low level, holding patiently, and waiting for opportunities usually results in significant returns.