How to operate the stock trading band?

Regardless of the type of stock, the operation steps are stock selection, buying, holding, and selling. Band trading is the process of exchanging substantial profits within a certain period of time. In fact, the scariest enemy of band trading is oneself, so investors must be patient. Most band trading will not fail, and how much profit can be obtained in band trading depends on the four steps of band trading.

Stock selection skills

In fact, band trading is not suitable for all individual stocks. During trading, only when there is a large volume at the bottom stage is it suitable for band trading. The trading volume shows the main action. When the fundamentals are bearish and the technical chart is bad, the funds panic and flee during the increase in volume, while the stock price compensates for the decline during the increase in volume. This indicates that the main force is taking advantage of the opportunity to build positions, and there may be opportunities for a wave of upward trend in the future.

Buying Tips

Investors should implement buying at the trough. After a large-scale decline, individual stocks will undergo a slow bottoming process, and the formation of a bottom usually requires a relatively long period of time. When the stock price moves out of a location and forms a trough, investors can buy after the trough is formed, and it is safer to intervene after the trend reverses.

According to technical indicators, troughs usually appear at the lower track of the Bollinger Bands, the lower support line of the trend channel, the edge line of the trading intensive area, and the bottom of the box oscillation. And according to the rules of extreme reversal channel operation, troughs usually appear at the blue lower trajectory (oversold buying point) or lifeline (best buying point) of extreme reversal channel.

Stock holding skills

The duration of shareholding usually depends on the time required for a stock to complete a complete upward trend. Some investors may say they are trading in the market or in the short term, but in fact, there is no precise time for either. Investment should be based on objective facts. If the upward trend lasts for a long time, the holding time will be longer. Similarly, if the upward trend lasts for a short time, the holding time will also be shorter. Investors should proactively adapt to the market, rather than expecting the market to adapt to their operations. Therefore, investors should follow the trend and not deliberately set their own holding duration.

In addition, many investors often lose confidence in their holdings due to the fact that their individual stocks have not risen as much as other stocks. This situation tests personal determination to make profits from market fluctuations and implement high selling and low buying strategies to ensure continuous profit streams, which can also enhance investors' determination to hold stocks.

Selling techniques

Investors should sell at the peak. A peak actually refers to the maximum increase in stock prices. A peak should be a region, so buying or selling should not overly demand buying at the lowest point and selling at the highest point. Instead, it is important to cut corners and take the middle section to capture the most profitable part.

According to technical indicators, peaks usually appear near the Bollinger Bands, near the upper track of the channel, at the edge of the trading intensive area, and at the top of the box where the box oscillates. Once the stock price reaches these levels, investors should promptly and decisively sell. According to the extreme reversal channel, when a stock reaches the pressure level of the blue or red upper track, it should be decisively sold.