One trick per day: What kind of stocks can fall and buy

Source: Internet
Author: User
Tags stock prices

When investors buy shares, there are generally two things: Rise or fall. For the former, as long as the sale can be profitable; for the latter, there are two main methods of coping: One is stop, and the other is the margin. Because of the different ideas and methods, the investors choose the strategy is not the same, some prefer to use the former method of operation, and some good at using the post-law trading. What we have used more is the latter-the "post-fall Replenishment method", the "more down and buy" operation method.

  Three different techniques

The so-called "more and more to buy" refers to the first purchase of a stock, when the share price appears a certain amount of time or amplitude after the fall, buy a certain number of the stock again, and so on. "Rising and selling" is the opposite, referring to the first sale of a stock, when the share price has a certain amount of time or amplitude after the rise, again sell a certain number of the stock, and so on.

The key to the clever use of the "more down and buy" operation is embodied in three aspects:

One is to determine the first buy symbol. Should choose long-term tracking, familiar with the stock, plate moderate, excellent performance, reasonable valuation, no increase, a large decline and the main quilt cover even deep set of stocks. This kind of stock often has the opportunity to be more than the risk, the operation is more reassuring. Otherwise, it is very likely to start with the first buy, from the "more down to buy" into the "more set deeper."

The second is to determine specific trading methods. On the one hand, to control the total amount, take the "more down and buy" operation of a single variety of market value generally does not exceed the total market value of One-third to one-fifth; On the other hand, to do a good deal. It is necessary to trade on a downward margin, such as buying every 5% or 10% drops, and holding a specific buy quantity, such as buying One-third to one-fifth each time until the limit is reached.

The third is to determine the strategy after the operation. Including after the completion of the strategy, such as the stock price fell, should be held, neither buy nor sell; If the stock price is volatile, it can be a high-end suction to do short-term; if the share price rises, it should be sold in batches, the more up and sell, until the full stack is sold out. Also includes the strategy after the chip sold, such as the stock price rises, should hold the currency, no longer buy, if the stock price is volatile, you can lower the high profit margin, if the share price falls, you should buy back in batches, the more down to buy, until all the return.

The use of the "more Down and buy" method of operation, often encounter two aspects of the situation: first, in the partial buy or sell is not finished, the price of the reverse operation; second, in the partial buy or sell has ended, the share price continues to run: After the fall, and then rise again. Whenever this kind of situation is encountered, the investor mentality and skill will bring the test. Therefore, the ability to use the "more down and buy" the key to the operation, in fact, depends on the ability to withstand the following "three Tests."

The first is the test of long-term negative fall after buying. "More and more to buy" although is a big opportunity, small risk operation method, but small risk does not mean that there is no risk. For example, in the view of some investors, a variety should fall without falling, so a large number of buy, but after buying the shares continue to plummet. In this case, it is very easy to shake the original judgment of investors, at this time the operation has become more critical: not only the chips have been bought to continue to hold, but also to believe that the original judgment, and should be bought in batches, the more the fall more buy. It has been repeatedly proven that "the more you buy" the chips you buy, the lower the cost of opening a position, and the more profitable it is.

The second is the test of the final crackdown before the strong pull. Even Daniel shares, the main force can not choose only up not to fall, often through shocks, washing dishes, such as "tossing" the trend of "torture" investors, and sometimes even before the rally to carry out the final crackdown on washing dishes. At this time, investors can remain calm, withstand the test, firmly hold the stock, to ensure that the chips are not lost, for the ultimate profit has a very important role.

The last is the test of a sharp rise in stock prices after selling. When the shares sold out, the stock price continues to rise, must withstand the test of greed and fear, strictly adhere to the "rising and selling" operation of the bottom line, no chase up operation. Conversely, if the test, investors choose to chase up the operation, it is likely to make the profits already hand "Jifeidanda".

"More and more to buy" operation method should avoid "wishful thinking"-facing Daniel shares and produce unrealistic fantasies. On the one hand, hope to buy the lowest, sell the highest, on the other hand, hope to full position, fall time and Space warehouse. This kind of extravagant hope, not only with the "more down and buy" Operation Law of the original intention and principle of the contrary, but also in the actual transaction is difficult to achieve. In the uncertain stock market, the operation is more difficult, the ordinary investors only resolutely abandon this unrealistic wishful thinking, always maintain a good mentality, truly "more down and buy", "more up and sell", in the volatile stock market to obtain a more ideal investment income.

One trick per day: What kind of stocks can fall and buy

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