The stock market is not only divided into bull and bear markets, but also includes the monkey market with ups and downs and violent fluctuations, and the sheep market with narrow fluctuations and mild consolidation. In the monkey market, investors who always long for a big bull market are often trapped at the top of their respective stages; And investors who are obsessed with bear markets often miss out on opportunities for fluctuating market trends.

How to trade stocks in the monkey market?

1. Not chasing the rise and killing the fall

When trading stocks in the monkey market, it is necessary to grasp the market characteristics of the monkey market. The stock market in the monkey market is like a monkey, climbing trees too high and naturally coming down to drink water; If you stay under the tree for too long, you will naturally climb back up the tree. So, excessive pursuit of gains and panic buying in the monkey market are both inappropriate. Because after investors chase higher prices, it is difficult to have any profit margin; After a sell-off, there is often no price difference that can be compensated for by buying on dips.

2. Go with the flow

Investors in the monkey market must take advantage of the situation, which includes two aspects: 1. It is necessary to follow the overall trend of the market, and after the stock index rebounds and stabilizes, resolutely enter the market and go long; When the upward trend of the stock index is hindered, resolutely take profits and take profits. 2. It is necessary to follow the trend of individual stocks, accurately grasp the hot spot switching in the monkey market, and not operate against the trend when the market has already formed mainstream hotspots.

3. Stable mindset

In the monkey market, investors are often ecstatic when the market slightly improves, but once the market is sluggish, investors are prone to pessimism or even despair, leading to a lack of complete planning for investment behavior and fluctuating investment levels. In the monkey market, investors must recognize the market essence of "moderate rise and limited fall", maintain a calm attitude, and be more conducive to seizing opportunities in the monkey market.

4. * * individual stocks

In the monkey market, there is a lack of continuous and significant increases in the index, but there are still profit opportunities among individual stocks. Stocks with abundant profit potential in the monkey market are often concentrated in a few hot sectors and exhibit the characteristic of the strong always being strong. Investors need to strengthen their fundamental research and analysis of the stock price operation patterns of these few strong varieties, in order to earn their price differences in the monkey market.

5. Transforming our mindset and gaining a correct understanding of the Monkey Market

Investors usually like to use bull or bear markets to describe the market trend when evaluating the stock market. In fact, the stock market is not just divided into bulls and bears. Monkey market trends are not uncommon in the stock market, and investors need to break through the boundaries of "bull" and "bear" and broaden their horizons.

6. In the monkey market, when it falls, it is bullish; when it rises, it is bearish

In the analysis and judgment of market trends by investors and market participants, there is more inertia thinking. A slight surge in the stock index is thought to be a breakthrough market trend, and a sharp drop in the stock index is thought to be embarking on a long bear road. Investors in the monkey market should correctly apply the reverse thinking of bullish when the market falls and bearish when the market rises.

7. When the monkey market falls, buy; when it rises, sell

Many investors tend to be bearish in a falling market, hastily cutting their positions or standing by and not daring to buy at low prices; When the market experiences a strong upward trend, they often blindly look long and chase after the rise at high prices, which can easily lead to short selling and being trapped. The most stable investment method to participate in the monkey market is to buy when it falls and sell when it rises. Don't be overly influenced by changes in the index.

8. In the monkey market, if there is a decline, there is money to buy; if there is a rise, there is stock to sell

The stock market in the monkey market often experiences ups and downs with a strong monkey like nature, and the investment environment in the market is constantly changing, with various uncertain factors intertwined and complex. No matter how optimistic investors are about the future market or the potential of individual stocks, they cannot buy and sell all at once.