The so-called early resistance level refers to when the stock price approaches the early resistance level, if there is no further momentum to increase, the difficulty of crossing this resistance level will be very high, and investors may want to exit or reduce their positions. During the process of stock price movement, the formation of each high point has its own special reasons, and once this high point is formed, it will have an extremely important effect on the subsequent stock price movement of the stock. Firstly, the chips trapped near the point will have a demand to be released when the stock price moves again to this point. Secondly, investors will develop psychological fear when the stock price moves to this point, and the pressure of profit taking will also increase accordingly. Therefore, if the early resistance level, especially the important resistance level, has not been effectively broken through, or if investors have doubts about the pricing of the stock at this time, they can consider reducing their holdings. If they happen to be at the high point of the market, it is necessary to exit. Also known as the top foot selling method
Under normal circumstances, the linkage between individual stocks and the overall market is still very strong. The probability of making money by buying stocks when the market is in an uptrend is much higher than when the market is in a downtrend. If the market reaches its peak, about 90% of stocks will sink accordingly. Therefore, determining whether the market has peaked is an important indicator for considering whether to sell stocks. There are several points to note when operating in this way. Firstly, one should have a certain degree of confidence in the signs and signals of the market peaking. Secondly, one should bear the risk of another 10% of stocks that do not follow the performance of the market continuing to rise at this time. in other words. This method requires the ability to look at the overall market, and also requires the courage to be willing. As for the method of measuring the increase, there are several special features: firstly, this method is not applicable to all stocks, and is generally more effective when used on strong stocks; Secondly, the starting point for measuring stock price increases needs to be handled carefully. If you cannot grasp it well, it is best not to use this method, otherwise it will mislead yourself or others.
In addition to the three methods mentioned above, experienced investors have other effective methods, such as the indicator method, which can be used for daily, weekly, or monthly lines; Mean line method, to see if the stock price falls below a certain moving average; Top bottom deviation method, etc.
It should be noted that each method has its imperfections and should not be used too mechanically. Flexible application is required, preferably in conjunction with multiple analytical methods for reference, to be able to meet four or more similar conclusions before conducting buying and selling operations! In addition, selling at the highest point is just a luxury, so one should not be overly concerned about unsatisfactory profits, in order to avoid disrupting a peaceful mindset. In the market, if you are too demanding, you will end up with only one word "regret": regret not buying, regret not selling, regret selling too early, regret having a lighter position... Therefore, leaving some room for investment will reduce regret and make it possible to earn small money often. It is better not to be greedy, be content and happy. If you make money and sell, don't regret it anymore, no matter how much it rises later! You have to leave some oil and water for others, right.
