How to unwind stocks?
1. Step by step solution method.
Suitable for stocks with a balanced market and deep hedging, not very suitable in bull markets. Operation principle: Firstly, if there are multiple stocks in hand that have been hedged, concentrate funds and choose the first stock to be activated for operation, and then break through the other stocks with one hit after the hedging is released; Secondly, it is necessary to have low suction and high throwing in the ascending channel.
2. Stop loss hedging method.
Suitable for chasing gains, speculative buying, and stocks with high stock prices, especially for those who have full positions and deep positions, with certain short selling risks. Operating principle: First, be decisive and do not miss the opportunity to stop loss; The second is to avoid operating at a low level and set up a replenishment, that is, when the stock price cannot fall, it should be replenished in a timely manner to avoid falling short.
3. The method of covering up and unraveling.
Suitable for buying stocks with lower prices and suitable for long-term investment. The advantage is that there is no need for incremental funds and no operational difficulty, but the disadvantage is that it is passive and may miss many investment opportunities, and some stocks may not be able to be unlocked. Operating principle: Firstly, focus on outstanding performance and not on poor performance; The second is to hold low instead of holding high. If the stock price is at a mid to high level, it is advisable to adopt a more proactive strategy to unwind (such as stop loss method).
4. Flatten and untie the trap method.
Suitable for investors with light positions, the disadvantage is that flattening in a downtrend relay pattern will amplify the risk. Operating principle: Grasp the five leveling machines, namely deep penetration, index bottoming out or individual stock strengthening, stock price hitting a new low with signs of stopping decline, stock price in the bottom area, and stock with speculative or investment value.
5. Stock swap method.
Suitable for stocks with weak fundamentals or no financial support, the downside is that a stock swap mistake can result in losses and increased risks. Operating principles: First, switch from low to high; second, switch from good to bad; third, switch from strong to weak. Stock swap does not mean buying immediately after selling. It should be intervened when the market is strong to avoid being trapped again.
In summary, we know that there are various methods to unwind stocks, but the key or central idea is to do everything possible to reduce costs, make up for losses, and ultimately make money. Finally, I would like to remind investors to maintain a positive attitude when trading stocks and to know how to let go at the right time.