(This article is compiled by the public account Yuesheng Investment Consulting (yslcw927)) for reference only and does not constitute operational advice. If you operate by yourself, please pay attention to position control and take risks at your own risk. )
How to determine the bottom shape of a stock is very important to us investors! Because stocks at the bottom have low costs and high returns, buying at the bottom is the best choice no matter what the stock is.
Principle of bargain hunting :
1. The price increase and decrease list is arranged in an olive shape, that is, the maximum increase is about 3%, and the maximum decrease is only about 3%. Most varieties in the market are in a state of slight increase or decrease;
2. If you don’t make money, you won’t make money. Add a position!
Near the historical bottom, the most common voice we hear is "The current market will definitely rebound as long as the volume can keep up." This sentence is wrong and the truth is true: the quantity increases and the price rises, this is the inevitable result. This sentence is impeccably correct; it is wrong: the quantity we have worked so hard to obtain is obtained by others by copying the bottom. How can we wait for it? use. Remember: participate in the bottom volume increase and do not passively wait for the bottom volume increase.
3. Be big first and then be small. Have an accurate prediction of the general trend and industry, have clear ideas and act decisively.
4. The bottom-buying position should not exceed one-third and should be purchased in three installments.
There are sounds in the wind, shadows in the light, and seals in the sand. The emergence of every bull stock has its precursors. After a major adjustment, the market is extremely sluggish. The main players take advantage of their own advantages and often enter the market ahead of retail investors. They attract goods, smash the market, pull up, wash the market, and finally the crazy increase are all reflected in the changes in graphics and trading volume. Only by knowing yourself and the enemy can you win every battle. Today I will talk to you about the bullish pattern that is easy to explode at the bottom. I hope it will be helpful to my friends. Picture:
The picture above shows a typical head and shoulders bottom stock pattern. This pattern plays an important role in bottom pattern analysis. After a truly perfect and effective pattern is completed, the energy is quite huge. Investors who can correctly recognize the "Head and Shoulders Bottom" pattern and intervene in a timely manner can also make huge profits.
In the formation process of the head and shoulders bottom pattern, aggressive friends can buy when the stock price breaks through the current downward trend line. Generally, steady friends can intervene when the head and shoulders bottom neckline breaks through and the stock price pulls back to the neckline position. , as indicated by the arrow in the figure above. After the head is formed, there is a small amount of funds involved, and there is an obvious phenomenon of eating. In the later operation process, special attention should be paid to the formation of piles, which is often a sign that the main force is gathering enough strength to pull up, and friends need to pay close attention to it. Once it breaks through the neckline and steps back successfully, the increase will be considerable, as you can clearly see from the picture.
One thing needs to be emphasized:
When using the head and shoulders bottom pattern to select stocks, there is no need to insist on similarity in appearance. The key is to emphasize similarity in spirit. The formation process and shape of the head and shoulders bottom are relatively complex, and sometimes variations occur. For example, the neckline is not necessarily parallel, but can actually slope upward or downward, compound head and shoulders bottom forms, etc. Standard forms are often deceptive because they are too perfect. On the contrary, complex head-shoulders-bottom forms are safer and more reliable.
Of course, in the bottoming stage, if you carefully analyze the market, you will find that there are many types of forms that are easy to rise, as shown below:
In fact, the above pictures are some typical bullish patterns that are prone to appear in the bottom area. Generally, the greater the level in the bottoming stage. , the longer the rising cycle, the more trading volume accumulates at the bottom, and the greater the momentum for a rebound.
"Three Maintenances" for stock market bottom hunting
(1) Maintain sufficient positions, whether they are investors with heavy positions at high positions, full positions, and falling with the market, or investors with short or light positions after reducing high positions, when the bottom is revealed Sufficient positions need to be maintained at all times.
(2) Maintain enough passion. This passion is mainly reflected in the utilization of existing positions and the grasp of market opportunities. After the position and variety are confirmed, if the chips held have fallen significantly, are in a deep position, and there is no suitable variety for opening a position, in principle, you should remain patient and reduce losses. We must attach great importance to the utilization of existing positions and seizing market opportunities, so that we can patiently deal with various sudden changes.
(3) maintains sufficient laws.To operate at the bottom, you must not only maintain sufficient positions, but also have a certain degree of passion, and at the same time, you must adhere to the operating rules. Sell when it rises, be bold but not greedy, and have no regrets after selling; buy when it falls, be careful without panic, and have no complaints after buying.
"Five Don'ts" for bargain hunting
(1) There is no absolute lowest point, so don't expect to buy the lowest point. Most investors believe that the rebound is the bottom, and are worried about missing the buying opportunity and being unable to chase the high the next day. However, it is recommended that investors not hope to buy the lowest point, and wait for the bottom form to mature before buying in large quantities. Treat bottom buying in stages and never make the bottom absolute and rigid.
(2) Trading volume can also be faked, so don’t be superstitious about bottom volume. Everyone knows that the price of has dropped and the volume of has shrunk, but it can still be reduced if the volume shrinks. Therefore, we should wait for the market index to stabilize and the 6-day average volume to increase rapidly for 3 consecutive days before we can confirm it. Under the premise of not believing in the bottom volume, watch the market index and average volume increase rapidly for three consecutive days.
(3)Don't think that the bottom is one day. As the saying goes, "Three days of high prices, a hundred days of low prices" is the truth. Generally speaking, there are several forms of bottoms. W bottoms and arc bottoms are the more common bottoms. Never go for V-shaped bottoms, because V-shaped bottoms Often it is just the left shoulder, and there is a possibility of being covered by quilt. Be sure to note that the bottom is a time period, so be patient and wait for it.
(4) Don’t spend all your funds at once. Buy a portion of the stock you like at every intraday low and buy it in batches. The stocks you buy must have a previous bottom. When the stock does not follow the market to a new low, you cannot simply buy more as it falls. Instead, you buy when the stock reaches an intraday low after it does not hit a new low. Make a reasonable allocation of funds, invest in batches, and look for opportunities in multiple places as appropriate.
(5) Stock buying is good, don’t buy long. Don't buy many stocks, no more than three, and concentrate your "ammunition" on strong stocks.
Things to note when buying bottoms in different markets
Market bottoms can be simply distinguished into sharp bottoms and round bottoms. A sharp bottom is a V-shaped reversal, which is characterized by a rapid rise in stock prices and a steep slope. It is generally formed due to the accelerated decline in the early stage, which caused the indicators to oversold and the deviation rate to be too high, resulting in a retaliatory rise. Sometimes, sudden major good news during the decline will also form a V-shaped reversal. For two different market bottoms, investors can adopt different bottom hunting methods to obtain profits. Distinguish different bottoms and prepare different operating strategies.
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