Investment Strategies And Skills Of The Stock Market In The Stock Market

It is worth noting that stock selection does not mean immediate purchase, because the completion of the bottom market generally has three forms:

1. single bottoms to complete the bottom of the construction process, this form is the usual V type bottom, often in the presence of major good news match.

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3. through the final jump to entice investors to bottom up the construction process, the bottom of the form of the early stage of the construction is sideways shock finishing, and the construction of the latter is suddenly fell behind the platform to meet the bottom, for example, from September 2003 to November bottoming market.

The process of bottoming is often more complicated. After a long and deep fall, it is difficult to build the bottom of the market in a single dip, no matter whether it is a large market or a stock. Usually the latter two bottom forms are quite common.

This determines that investors should not buy too early in the bottom market.

The stock picking link should be separated from the buying link, and after the stock picking, we must be patient and wait for the time to buy.

In the bottom market, the best time to buy is not in the bottoming process, but when the stock is bottomed up, and gradually recovering upward trend.

Most investors prefer to buy when the stock price is lower in the bottoming process, but the bottom market is more complicated, and the direction of the stock price changes has a large variable. Sometimes after the new low, there is still a lower level, so the bottoming process is not the right time to buy.

When the bottom is completed, investors can choose the right investment way according to the bottoming form and the breakthrough power. If V reverses, we should pay attention to the depth of the stock price fall. Generally, the deeper the stocks, the greater the resilience and the more participation value; if the bottoming process is a complex multi dip, we should pay attention to the accumulation at the bottom stage.

The power to break up the stock price after successful bottoming is also important reference data.

In the bottom market, there will be a certain rise resistance area or neckline position. When a stock breaks through the resistance zone or neckline quickly with the volume enlargement, investors can follow up in time. If the stock price rises slowly, the volume is not significantly enlarged, and it is difficult to break through the resistance zone, investors should sell the stock as soon as possible.