Share swap is a proactive strategy of unwinding. If used properly, it can effectively reduce costs and increase the chance of unwinding. Once the operation makes a mistake, it will also fall into the dilemma of "slapped on both sides", so investors must be very cautious when swapping shares. So, what are the specific methods for stock exchange and what principles should be followed?
1. Share exchange method
1. Exchange "strong" for "weak". The main fund operation of a stock can be roughly divided into several stages, such as accumulation, laundering, promotion, shipment, and exit. When a stock has completed the main rise, the main force has basically completed the delivery, and its upside energy It will dissipate, even if the high position is sideways, it is only the end of the force, and there is little room for the rise. At this time, investors might as well choose relatively "weak" stocks that are in the main accumulation period.
2. Replace "weak" with "weak". It is to replace the weak stocks that have been completely abandoned by the main force into the weak stocks that the new main force funds enter the market. Because the former is like a free fall in a weak market, the bottom is unpredictable. Even if the market is strong, it tends to rebound weakly and will not perform well in the entire market. The latter has entered the market due to new major funds. Although temporarily performing generally, it will eventually bottom out and become stronger.
3. Replace "strong" with "strong". After a rapid rise, some stocks are about to or have entered a high level of consolidation. Some of them may only rise by inertia, but the enthusiasm of investors to chase the rise is obviously not high, and there are signs of heavy volume stagflation. At this time, investors should promptly replace it with stocks that have just started and are about to enter a period of rapid growth.
Second, follow the principle
1. The principle of higher volume first. That is to leave the bottom heavy stocks and replace the bottom unlimited stocks. Because all stocks that are infinite at the bottom generally tend to be weaker than the market, even if they are selected by the main force in the future, the main force will beat it down before opening a position and then attract money. Even if the stock has already entered the main force, if the bottom is not large, it means that the main force has already absorbed enough chips, and it is very likely to be distributed during the rebound, and the future upside will not be large.
2. The principle of sexual activity. Some stocks are sparsely traded throughout the day and the turnover rate is also very low. They fluctuate only by a few cents every day. These are the typical underdogs. If investors have such stocks, they should sell them as soon as possible and exchange them for stocks that are now in the mainstream sector, with active transactions, high market attention but not much growth.
3. Abandon the "old" principle and keep the "new" principle. Recently, due to the continued collapse of the market, the premium of some new shares is not much or even close to the issue price, and the valuation is reasonable. However, these new stocks and sub-new stocks have not been expanded, the circulation is relatively small, and the main funds are more likely to be controlled. Therefore, some sub-new stocks that have not been listed for a long time and have not been madly speculated are very lightly held up, which can easily stimulate the enthusiasm of mainstream funds.
4. Keep "low" for "high" principle. The advantages of low-priced stocks have several aspects. One is that they are easily overlooked by the market and their investment value is often underestimated by the market. The second is that low-priced stocks have relatively limited room for further decline due to their low absolute prices, especially in the A-share market due to lack of With the exit mechanism, there are very few listed companies going bankrupt, so the risk of low-priced stocks is lower. If it is a low-priced stock that has fallen deeply from a high position, it is far from the upper lock-up area and has a certain upside potential. The price of high-priced stocks themselves implies high risks and faces greater pressure for adjustment. Therefore, high-priced stocks must be exchanged when swapping shares to retain low-priced stocks.
3. Notes
Investors should keep the following points in mind when exchanging shares:
1. In a weak market, the continuity of general hotspots will not be very long, so do not blindly chase hotspots. Analyze the market pulse.
2. Beware of defensive stocks when the market is adjusted, because defensive stocks in a weak adjustment are likely to be abandoned by the main funds when the market turns strong.
3. Don't chase high and exchange shares, because in a weak market, you don't have to worry about not having a good buying point. Strong34strong must learn to wait for short positions. (I personally think this is very important. An investor who will not short position will miss many excellent opportunities to enter the market.)
4. When swapping shares, consider high growth, small caps, low prices, sub-news, Individual stocks with strong equity expansion capabilities and rich subject matter.
When a round of quotations unfolds, we must learn to make full use of the quotations. If you want to make full use of the market and maximize investment returns, you must learn to hold shares and reduce operations on the one hand;
is mainly holding stocks, not holding on, but also according to the specific trend, the stocks that have risen too high and have already shown adjustment signals are replaced with new hot stocks that have just started.So as to avoid the short-term risk of individual stocks, but also obtain new stable returns.
For medium and long-term stocks, it is an effective strategy to not care about short-term fluctuations and not holding stocks at the top. However, in order to maximize returns and invest high capital efficiency, the necessary band operations also need to be carried out. For short-term varieties, the ability to grasp the rhythm is a key factor in determining the success or failure of the operation. Take the recent actual combat as an example. , When others buy the bottom , you cut your meat because you are too short-sighted; strong35strong ; Someone is preparing to ship , but you are chasing . This kind of operation is not grasping the rhythm, not only can not get the ideal income, but will lose money.
The stock swap is mainly for short-to-mid-line varieties. The following principles should be adhered to when using the callback shock during the rise process to carry out the stock swap:
1. Distinguish the nature of individual stocks and keep the trend unchanged . As long as the rising cycle of individual stocks is not over, there is no head signal, not heavy volume stagnation or abnormal top changes, you must firmly hold the stock. On the contrary, consider timely exchange of shares.
2. Go for excessive gains and exchange for stocks that have just started heavy volume.Individual stocks with excessive gains have greater accumulated risks and require stronger adjustments. To switch such stocks to new hotspots that have just started in time will avoid short-term risks and obtain new benefits. The plate is rotated, no matter what the strong variety, there must be a break.
3. Remove the weak and change the strong. The same is rising, the weaker varieties have different rising speeds from the strong ones, and the more the weaker varieties, the faster and more room for adjustment. To take advantage of the shocks, we should take advantage of weak varieties that do not have large funds in our hands and have few trading volumes, and timely exchange shares and price to match ideal strong varieties.
4. Change the falling channel to the rising channel. This is very simple, investors understand.
5. Go to unlimited stocks for bottom heavy stocks. Quantity is price first, and immeasurable is not a bull.
6. Remove the subject clear stocks for potential subject stocks. Such as reorganization of the subject matter, when the plan is announced, it is when you exchange shares. (Be sure to keep an eye on the policies and information in time)
7. Master the timing of the exchange of positions. To use your own trading system, grasp the point where you sell high and buy low, and do your best to sell high and buy low.
Summary: In addition to the above methods, I think the mentality is even more important. You must grasp your own mentality, and the operating strategy must be suitable for you, otherwise you will not benefit from even the best operating skills! Stock exchanges must not be blind, and you can do it when you see them. Therefore, timely update of the stock pool and optimization of the best and strong varieties are the prerequisites for your successful exchange.
The views in this article only represent personal views, not as investment basis!
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