Must Win The Reverse Thinking: A Big Drop, A Big &Nbsp.

Here, I would like to remind you that opportunities are falling out, and the risks are rising. So we should try our best to make a big drop and increase our courage.

Since the establishment of the securities market, overreaction is a major feature of the stock market: no matter how much profits rise, or because of profit and emptiness, it often rises when it rises.

In fact, the occurrence of such a situation should be understandable, because the strength of Lido or profit itself is so strong that there is no way to weigh Jin theory two, and the investment public has different degrees of reaction to the profit or loss and the size of the action taken.

However, no matter whether it rises or falls, it is likely that "extremes must be reversed". When inflation is over, it will inevitably fall.

If investors can deeply understand this principle and act according to circumstances, the odds will increase and the relative risk can be reduced.

Usually, a big drop is nothing more than two situations: one is the sharp drop in share prices caused by sudden bad news, including rumors or groundless rumors, and the two is a decline in stock prices for a long time due to changes in the political or economic environment or some special bad interest.

Let's start with the first situation, the sudden opening of a bad day or rumors, or the sharp fall in the intraday and end of the market. Investors should first remain calm, then calm down, analyze and judge rationally, and then take countermeasures so as not to make wrong decisions due to excessive panic, especially during the intraday or at the end of the market.

If we invest in medium and long term, we should not care too much about the temporary rise and fall of stock prices.

In the past two years, the stock market often has a main body in the tail market deliberately smashed the situation, often when the stock market hit the price limit, the second day, but also pushed the share price to the limit.

Let's look at the second situation, that is, the long decline of political or economic environment or a particular negative interest.

1, various technical indicators such as MACD and RSI show serious oversold and overfall.

2, the political and economic environment has not deteriorated or deteriorated as expected, and has been markedly improved.

3, trading volume is shrinking and bottoming out.

4, the market is lax, the securities business departments can be ROC fins, and securities analysts generally publish pessimistic arguments to persuade people to wait and see.

5, blue chip stock prices have stabilized, and brokerages and other institutions have begun to enter.

The situation can also be divided into two kinds, one is sudden rise, the two is sustained inflation.

Abrupt rises generally come fast and go fast. As a flash in the pan, the market stays relatively short. If investors catch up with high buying in this situation, the probability of being locked up is very high, so they need extra care.

As for the sustained rise, there is usually a lot of support. Whether it is for fundamental reasons, such as the overall economic prosperity, the performance of listed companies has generally increased and profits have increased significantly. Or because of the capital market, such as the market full of hot money, profits and hot money poured into the stock market and so on.

Sudden rise has mostly occurred under the following circumstances:

A, the stock market for a long time is sluggish, the popularity is lax, the interested person, such as the organization and the securities trader and so on, in order to own interest, is bound to break through the deadlock, but takes the key to lift certain targets which have the target function, in order to drive the entire stock market, causes the stock market to be active.

B, as a result of a lot of news, by the institutions of great exaggerated and formed a rush buying rush.

When investors face the sudden rise, especially in need of calm, do not rush to rush ahead without knowing the real situation. In fact, investors who like to fry short term are often planted in this market.