Usually, building a mid line position requires clear expectations and a psychological tolerance range for significant stock price fluctuations. Do not be impatient or overly panic, and avoid turning mid line investments into short-term investments due to short-term profit panic, or turning mid line investments into long-term investments due to deep market downturns. Meanwhile, it is not advisable to operate with short-term working capital.
A. Learn to understand the K-line chart of the stock: track a certain stock for a certain period of time, understand the operating methods of the trading institutions, and clarify that within 2 months after you buy it, without considering external factors, there is a high probability that the stock will experience an upward trend, and the increase rate will not be less than 20%. The usual principle for selecting stocks based on the median line is that both long and short moving averages are in a bullish position, there is a sudden increase in volume after consolidation, there is an expectation of mid-term positive news (such as policy themes, consumption cycles, annual report expectations, etc.), and the replenishment cycle is approaching. The selling principle is opposite to the above. Mid range investment generally does not consider individual stock fundamentals, but it is best to choose weak stocks or stocks dominated by multiple institutions. These stocks generally have clear graphical characteristics before the main rise or fall.
B. Considering external factors interference: It is clear that there will be no significant policy, industry, or individual dividend bearish in the future period, and the overall market cannot decline unilaterally.
C. Adhere to the principle of selling the entire position and refusing to enter when holding until the stock price remains at a high level of stagnant growth or when technical indicators show obvious top characteristics. Do not demand specific values for stock prices (but provide a broad range of expectations), always pay attention to various news trends, adapt to changes, and if there are market or industry changes, immediately exit. During the holding process, it is advisable to sell at a high price and buy at a low price when the chart has not gone bad. Do not chase after the rise, nor panic due to temporary lack of rise or continuous small washout. It is necessary to have a certain level of holding confidence. Strictly set the stop loss level, usually not exceeding 10%.
D. Advantages and risks: It will not be confused and eliminated by short-term fluctuations or pressure from institutions, and has high returns (about 30%~50%), which is the advantage of mid-range investment. The biggest risk for medium-term investments is the reversal of gains and losses caused by the instability of the overall market or negative trends in the industry.
