In the stock market, every stock has a relative high and low point during a certain period of time. This relative high point is what we call a peak, and this relative low point is what we call a trough. When a peak and trough are combined, it is what we call a band. So, how do stocks perform band operations? Let's take a look together below.
1、 The overall market is a barometer of a stock.
When buying and selling, it is necessary to pay attention to the overall trend of the market. When both the primary and non essential trends of the market are downward, it is best to stop trading in the band. If there is indeed a medium to long term upward trend in stocks that can be bought, the position should also be relatively light. When the entire market is experiencing a sharp decline, it is necessary to pause this operation. However, after a few days of sharp decline in the market, if you seize the opportunity and quickly engage in wave like operations, you will definitely make more profits.
2、 Only select stocks with the primary upward trend.
Do relevant operations on stocks that are currently in an upward trend, and never take risks by ignoring important trends in stocks that are in a downward trend; It is best to choose to buy when the primary upward trend is outstanding, intervene immediately when the turning point of the intermediate upward trend is just emerging, and sell immediately when the track encounters resistance and falls back on the primary trend; It is relatively safe to intervene in stocks that have been trading at a low level for a long time and were trading at a high volume last night.