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Three Ways To Decide When To Sell Stocks

2011/10/21 8:54:00 15

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Selling stocks

It's the hardest part. To some extent, when to sell stocks is even harder and more important than buying stocks and buying stocks.

Although there are various theories about the target price of stocks, generally speaking, investors can grasp the following points: first, the resistance level in the early stage; two, whether the market is peaked; and three, measure whether the increase is 50% or 100%.

The so-called pre resistance level is that when the stock price is close to the previous resistance level, if the momentum can not be increased, the difficulty of jumping over the resistance level will be very great. Investors may wish to exit or reduce their positions.

In the process of stock price movement, every high point has its special reasons. Once the high point is formed, it will play a very important role in the subsequent stock price movement. One is that the chips in the vicinity of the spot will have the unwinding requirement when the stock price moves again. At the same time, the stock price will move forward. At this point, investors will have psychological fear and the pressure of profit taking will also increase.

Therefore, if the initial resistance level, especially the important resistance level has not been effectively broken, or investors will be doubtful about the pricing of the stock right now, it can be considered.

reduce one's position size

If there is a high point in the market, there is a need for exit.

It's also called head to toe selling.

Under normal circumstances, the linkage between stocks and the market is still very strong. When the market is in a rally, the probability of buying stocks is far greater than that of the market. If the market reaches the top, almost 90% of the stock will sink.

Therefore, judging whether the market is peaked is an important consideration of whether or not to sell stocks.

index

。

There are several points to note in this way of operation. First, we must have a definite grasp of the signs and signals of reaching the top of the market. Secondly, we should bear the risk that the 10% stock that does not follow the market performance will continue to rise at this time.

In other words.

This method requires the ability to look at the market, and also the courage of "willing" to measure.

rise

There are several peculiarities in this method: first, this method is not applicable to all stocks, and is generally more effective in strong stocks. Second, the starting point of stock price increases should be handled with care.

If you can't grasp it well, you'd better not use this method, otherwise, you will mislead yourself or others.

In addition to the three methods mentioned above, experienced investors have other effective methods, such as index method, which can be applied to both the daily line and the weekly or monthly line; the average line method is used to see whether the stock price has fallen below a certain EMA, the top and bottom deviation method, and so on.

It is important to note that each method has its drawbacks and can not be used too mechanically.

It is necessary to use flexibly, preferably with a variety of analytical methods for reference. It can meet more than 4 identical conclusions, and then buy and sell operations. Moreover, selling at the highest point is only an extravagant hope, so we should not overlook the unsatisfactory profits, so as not to damage the peace of mind.

In the market, if too demanding, there will be only one regret in the end: regret has not been bought, regret has not been sold, regret has been sold early, and regret has been reduced.

Therefore, leaving a little room for investment, and less regret, it is possible to make small profits and earn money. It can be done without greed, contentment and happiness, and no regrets when making money, no matter how much it rises behind, it is always necessary to save some oil and water for others.