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Two Lifeline For Band Operation

2011/7/21 11:05:00 32

Many investors want to adopt

Band

The way of operation is to seek profits from the stock market, but the actual situation is often: because we can not know exactly when to enter and when to exit, so that the band operation in the end becomes a "lift" up and down.

In fact, for the investors who want to use the band operation method, the most important thing is to fully understand and grasp the characteristics of the two lines of "multi headed escape" and "empty head back", and take these two lines as the input investment and the operation basis of withdrawal from danger, which can be enough to avoid the two mistakes in the late bull market and the early stage of the bear market.

Why do these two lines have such a magical effect? Originally, as long as the analysis of bull and bear cycles in the stock market can be found, there are nine stages, namely, the downturn period, the initial stage, the return period, the main period, the last stage, the first fall period, the rebound stage, the main fall period and the end fall period.

Among them, the long escape line usually appears in the downward trend of the rebound period, the short back repair line mostly appears in the upward trend of the return period.

The characteristics of the multi headed escape line are: the stock index slips from the high point of the stage, and after a few days' adjustment, it suddenly falls down and appears the shrink line.

The reason for this is that the short-term speculators who are usually profitable in the early stage think that the market is going to overtake and rebound and have to enter the market to collect the bottom.

As large institutional households are evacuating, the stock market and stocks will fall even worse following this small line, and even a few limit plates will fall into the market.

For example, in April 21, 2010, the Shanghai Composite Index closed at 3033 points, with a turnover of 131 billion 100 million.

Thereafter, the stock index reached a minimum of 2319 points.

During the same period, the index dropped by more than 700 points.

So when you see this shrink line, don't think it's a chance to pick up the cheap. It's the only right choice to quit as soon as possible.

The characteristics of the short return line: the stock index has experienced many days from the bottom of the stage.

rebound

Then suddenly

Stop inflation

There is a shrink line.

The reason for this is that after a long period of decline, most investors have been left behind by the idea of "bag for security". Whether they are small profits or just unlocked, they usually choose to sell shares and leave the market, and because large institutional investors are buying on the low side, the stock index and stocks will be more powerful after this small shrink line.

For example, in October 12, 2009, the Shanghai Composite Index closed at 2894 points, and the volume was reduced to 99 billion 800 million yuan. After that, the stock index rose for more than a month, reaching 3361 points in November 24, 2009.

Therefore, when we see this shrink line, we can not only cut the meat, but also boldly enter the stock market.

Soros, the investment guru, believes that significant investment opportunities and risks only arise when market trends are reversed.

From this we can see that as long as we really grasp the disk characteristics of the long escape line and the short back repair line, and then select the investment target through the analysis of the fundamentals of the listed company, we can get a good return on investment by the band operation.