In Five Cases, We Must Resolutely Sell Stocks.

buy shares It is to make money, but it will also make investors lose money. In order to avoid big losses, individual investors need to learn how to sell stocks. To learn and use stock selling methods, the first is to learn some useful selling rules; the second is to follow these rules in all your market activities; and third never violate these rules. As the saying goes, buying silver is selling gold. If you buy a good stock and fail to choose a good time to sell, it will bring many regrets to the stock investment. The following is the rule of selling stocks.

First, lower than the buying price, 7-8% resolute. Stop loss

The first and most important selling rule is difficult for many investors. After all, it is difficult for many people to admit that they have made a mistake. The most important thing about investment is to recognize the mistake quickly and minimize the loss when you make a mistake. This is the reason for the 7% stop rule.

The study found that 40% of the bull stocks eventually returned to the initial outbreak after the outbreak. The same study also found that stocks with a drop of 7-8% at key points had less chance of better performance in the future. Investors should be careful not to see only a few examples of a sharp rise in stock prices. In the long run, sustained losses will be kept at a minimum and investment will yield better returns.

So the bottom line is that when the share price falls below 7-8% of the bid price, sell the stock! Don't worry about making small losses when making mistakes. You will get more compensation when you do not make mistakes. Of course, when using the stop loss rule, it is important to note that the buying point should be the key point. When the investor buys the stock, he points out that the buying point is a burst point, though the buying point is not necessarily the outbreak point after all.

Second. climax Then sell shares.

There are many ways to judge that a bull stock will fall to a reasonable price at the top. The most commonly used method of judgement is when all investors in the market try to own the stock. After a gradual increase of 100% or more, a stock rose suddenly and its share price rose 25-50% in 1-2 weeks. Is this a very exhilarating situation? But the shareholders should be happy to see that they should sell stocks. This stock has entered the so-called climax zone. General stock prices are hard to keep rising, because no one wants to buy at a higher price. Suddenly, the huge demand for the stock has become a huge selling pressure. According to research, stock prices are hard to get back to the original high point after the climax, and it will take 3-5 years if they can come back.

Third, continuous shrinkage to create a high point for sale. Opportunity

Stock prices are determined by supply and demand. When the stock price of a stock starts to rise sharply, its turnover often rises sharply. The reason is that institutional investors are rushing to buy shares to grab the front of their competitors. After a long period of rise, stock price rises and power fails. Share prices will continue to hit a new high, but volume will begin to fall. At this time, we must be careful. Few institutional investors are willing to buy the stock at this time. The supply exceeds demand, and the selling pressure is increasing. A series of rising shrinkage often indicates a reversal.

Fourth, profit after 20% end

Not all stocks will keep rising. Many growth investors often sell stocks after the stock price rises by 20%. If you can earn 20% of the stock and lose 7%, then you invest 4 times and you will not suffer losses for the 1 time. For this rule, O'Neill gave an exception. He pointed out that if the share price rose 20% in the 1-3 week after the break point, don't sell it for at least 8 weeks. He believes that such a rapidly rising stock has the power of 100-200% rising, so it takes longer to share more profits.

Fifth. Sell stocks when a stock breaks through the latest platform failure.

As we all know, seasons change in spring, summer, autumn and winter, and there is a similar cycle in the trend of Daniel stocks. These stocks have experienced rapid changes and the alternation of building platforms. Generally speaking, the longer the platform is built, the larger the stock price rises. But there is also a possibility that stock prices will peak and share prices may fall sharply. Usually, earnings and sales growth is very good when the stock price is at its peak, because the stock price reflects the future. No doubt, share prices will peak before the company's rapid growth slows down. When there is more adverse news, if the expected message will lead to the failure of the latest platform construction, investors should sell stocks quickly.

Both stock and stock markets follow certain rules, and the key to successful selling of stocks is simply to implement the laws summarized above. After buying a stock, you should always keep your chin up and sell the stock firmly when the selling rules are met. Strict enforcement of selling rules can not only help you avoid big losses, but also help your wealth grow.