Six strokes of the stock market stunt Bull Bear all make money

Source: Internet
Author: User
Tags stock prices

Some people say that the stock market is a money-making "tool", but if you do not grasp a certain operating skills, not only make money, but will lose. Here are six ways to make a profit.

Method One: Short-term profit method

The short-term profit method is the investment technique that buys a lot when a stock rises, and then sells it in a short period of time to a considerable height.

Short-term profit strategy is based on: when the stock price rises to a certain price, often cause large fluctuations, at this time, it is easy to sink into the rush of the crowd, so that the share price continues to climb, and hit a new record. Therefore, as long as the forecast is accurate, when the price rises at a high price to buy, until it continues to rise after the sale of all, can obtain a considerable profit.

The advantage of this method is that it can seize the profit opportunity at the time of stock price rise, improve the efficiency of the output of the capital, the disadvantage is: first, after the high buy, the market may be reversed, so that investors suffer losses; second, after selling at a higher price, the share price may continue to move higher without maximizing benefits.

Therefore, take the short-term profit method to pay attention to two points: first, to strengthen the analysis and prediction, the second is to choose a good time to buy and sell.

The short-term profit method is more suitable for those investors who are aggressive and have strong risk tolerance.

Method Two: Batch buying and selling method

The buy-and-sell method refers to when the share price falls to a certain extent, investors begin to buy into the stock market in batches, and when the share price rises to a certain height, it starts to sell the shares in batches.

The method of batch buying and selling is a kind of investment method based on overcoming the indecision weakness of human nature. The good intentions of stock investors are to be able to sell at the lowest and highest prices, but only a handful of people really get what they want in the market.

Often, when stock prices fall to the market, many investors still think the share price will continue to fall, still cash, and regret it when the stock price rebounded strongly. Also, when the stock price rises to the point where it should be sold, the share price will continue to rise, and when the stock price falls, not only does it not sell well, sometimes it is hard to unload.

The partial sale overcomes the defect that the above only chooses one time to buy and sell. As the number of purchases and trades is repeated and sold several times, when the share price falls to a low point, investors can start to buy, even if the stock price is still falling after the purchase, investors can buy it in succession.

Similarly, when the share price rises to a certain high, investors will not be reluctant to sell because of greed, because even if the share price continues to rise, investors still hold some of the stock, still can profit by selling continuously. As for the timing of the sale of batches, it is advisable for investors to identify them by means of technical analysis.

The usual method is: when a stock of relative strength index is lower than , said that the stock price is already low, the likelihood of its rebound is very large, at this time the market should be bought in batches, and when the relative strength index reached more than a level, indicating that the price of the stock has been high, the likelihood of its fall is great, The stock should be sold in batches at this time.

Method Three: The average cost investment method

The average cost investment method, also known as the amount averaging method. It is in a certain period of time, fixed a certain amount of funds in installments to buy an average investment method of a certain stock.

How to do this: Select a stock with a long-term investment value and a large price fluctuation, during a certain period of investment, whether the stock price rises or falls, insist on regular purchase of the same funds with the same capital. Thus, the average bid price per share of investors is lower than the average market value.

The advantages of the average cost investment method are:

First, the method is simple. Investors need only regular fixed investment, do not have to consider the time of investment to determine the problem;

The second is to avoid the risk of buying too much stock at high prices, and the opportunity to buy more stocks when stocks fall;

Third, with a small amount of funds can be continuous investment, and can enjoy the long-term value-added benefits of stocks.

The use of such a party should pay attention to three points:

One should choose to operate stably, the profit steadily rises the company stock;

The second is to have a longer investment period. If the period is shorter, the effect is not very obvious;

Third, we should choose the stocks with the higher price fluctuation and the stock price rising trend.

The average cost of investment law applies to those investors who have regular, fixed source of funds.

Method Four: Fisher net method

Fisherman's withdrawal method is one of the combination methods of stock investment. It refers to the stock investment, like a fisherman nets, in the same period will be invested in a variety of stocks, in order to gain profits in the fluctuation of stock prices and reduce risk.

The advantage of using Fisher net method is that it can gain both the profit of stock investment and the diversification of investment to reduce the risk. For example, when the stock market is in a bull market, the stock investors can then throw in their shares in order to gain profits because of the rotation of the stock.

Even if there is a bear market, but also because investors hold a variety of stocks, there will always be some strong stocks, the hands of a share may be a partial offset situation, so as to reduce the loss of investors.

But because this method pursues "which kind of stock rises to sell what kind of stock" the law, easier to put the stock in the low price when selling, and long-term to hold inferior stock in the hands, thereby reducing their profitability. For this reason, there is also a "anti-fisherman net" investment method in the market, that is, the choice to buy a variety of stocks, which stocks rise to buy more, which kind of stock fell to sell it.

Because most of the stock market is strong, weak and weak, so this method may allow investors to retain more strong stocks and protect the future profitability of investors. However, because the "anti-Fisher Net law" pursues the "which kind of stock price falls to sell what kind of stock" law, it is very easy to reduce the profit level of the traded shares.

Both of these methods have pros and cons, and investors can choose their own circumstances as appropriate.

Method Five: Pyramid-type Trading method

Pyramid-type buying and selling is a variant of the batch buying and selling law. This method is to adjust and determine the stock buying and selling quantity by the simple triangle (pyramid type) as the criterion of the price. It is divided into pyramid-type buying method and inverted pyramid sell method two kinds.

Pyramid-Type buying method, that is, the bottom of the pyramid type (positive triangle) is wider and smaller, the broad part of the price is low, buy a large number, when the stock price gradually rise, the number of buy should be gradually reduced.

The advantage of using this less-than-buy pyramid method is that if the investor is still in a rising channel after the first purchase is completed, the investor can add a second and third additional investment to increase the profit opportunity. Although it is less likely to make more profit at once, it can reduce the risk to investors from falling stock prices.

If the share price declines after the second and third purchase, it will also be less than the second or third buy-in, without causing too much loss. Therefore, the more buy less pyramid-type buying method can not only increase profit opportunities, but also reduce risk.

The inverse pyramid selling method is the opposite. The inverted pyramid is lower and smaller, and the farther up is wider. Therefore, the inverted pyramid selling method requires that when the stock price is rising, the number of sales should gradually increase. It has the advantage of being able to sell stocks when the popularity is strong, easy to get a better spread, but also to reduce risk.

Method VI: Capital Protected Investment law

The capital protected investment law is an operation method that avoids the exhaustion of the stock investment.

The "capital preservation" mentioned here is not the total amount that the investor uses to buy the stock, but the portion of the total investment that is not allowed to be lost.

The most important thing to adopt this method is not to buy the time choice, but to make the decision to sell, therefore, the profit sell point and stop loss point is the key to the formulation.

Profit sell point, that is, the point that the investor has to sell when he gains a certain amount of investment profit. The sale at this time is not to sell all the shares in a breath, but to sell the part that they want to preserve. For example, the "Ben" in the mind of an investor is the sum of the total investment, and his profit-selling point is the amount of the stock that holds the value of the shares to a maximum of the initial investment.

At this point, the investor can sell all shares of 1/3, first to protect their "Ben".

After this capital preservation operation, the market value of the stock held is still the same as the total amount of the initial investment. Thereafter, the investor may then make a second "copy" of his or her wish to protect.

For example, if the investor, after the first guarantee of "Ben", changes the remaining shareholding of "Ben" to 20%, that is to say that theremaining shareholding, and thenup to a further 1 of the sale can be sold again (6), andthis part of the "Ben" insured, and then, The "book" of its remaining holdings.

And so on, as the market continues to rise, the number of its holdings will inevitably decrease. However, the total value of the shares has remained unchanged, always equal to the initial investment amount. It should be pointed out that the development of profit selling point is a way to increase the market.

Six strokes of the stock market stunt Bull Bear all make money

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