The stock market is unpredictable, and no investor can guarantee that they will always be invincible in the stock market. There are many excellent investors in the market, and investment strategies and methods can be used as references, but it is important to understand that even the essence of other people's ideas will always be someone else's, and the most important thing is how to find the most suitable for yourself in the vast sea of theories and transform them into your own investment style, which requires a long time of practice and accumulation. Therefore, after investors enter the actual combat, they must pay attention to the accumulation and integration of knowledge, constantly adjust the investment strategy according to their own preferences, and will definitely form their own investment style over time.
Stock selection ideas determine the income of stock speculation, a round of market, some people can earn several times the income, some people income is not very good, or even not profitable, there is a question of whether to choose the right hot spot, there is also a problem of stock selection ideas. Generally speaking, the most profitable stock picking strategies are the following:
1. It is necessary to select stocks and avoid sluggish varieties. Generally speaking, in the bull market, it is necessary to choose varieties with high coefficients, and choose varieties with low coefficients when adjusting. The former is an offensive-oriented strategy in a bull market, aiming to obtain more and faster returns, while the latter is a defensive strategy, which aims to reduce the intensity of adjustment and reduce risk.
2. It is necessary to look at the bottom amount. There is a stock trading technique, which is to look at the opening volume. The so-called quantity is the price first, and the quantity can not be simply looked at, but also the volume ratio and the degree of sustainability.
3. It is necessary to choose a variety of chips that are concentrated and thoroughly washed. A stock, whether it is at the bottom or a pullback in an uptrend, can shrink to the limit, it is easy to rise quickly, and the concentration of chips is conducive to a rapid rise.
4. It is necessary to choose a variety with a large opening angle of the moving average. Varieties with strong attack power must be averages that are sticky, and then upwards are more scattered and have larger openings. Generally speaking, the larger the opening, the stronger the rising speed, but it should be noted that the best and most sustainable should be 30-50 degrees.
5. The share capital should be moderate. In addition to not having time to look at the market for the long term, it is suitable to choose some large-scale blue-chip slow cattle breeds, generally speaking, it is better to choose below the market. If the plate is too big, the amount of funds needed to pull up is large, and it is impossible to rise quickly.
6. It is necessary to select varieties that are fully and quickly large-scale breakthroughs. The reason is very simple, but in practice, many investors either dare not enter, or are washed out after entering, and do not understand that most of the stocks that rise after the breakthrough will have a certain amount of space. The longer you build, the more explosive you will be after the breakthrough.
7. It is necessary to pay attention to the timing of intervention. It is the same bull stock, and the speed is different in different rising stages. In the stage of the bookmaker's accumulation, the intervention needs to be safe, but the rise rate is very slow and requires more time cost. The most clever method is to wait for the main force to finish sucking chips, fully wash the plate, and then intervene when the volume starts to rise, which is usually called the fattest section.
Adhere to the "buy below 20 full position, sell above 80 full position", steady profit and no loss
1. Bottom divergence buying
Bottom divergence refers to the stock price hitting new lows in waves, while the trend formed by the corresponding indicator line below 20 on the RSI indicator chart is rising wave by wave, not with the stock price hitting a new low, it means that the stock price is falling in the process, and the RSI indicator is falling less than the decline in the stock price, as shown in Figure 1-1.
The divergence of the RSI indicator indicates that the upward momentum of the market is accumulating, and the stock price will be nearing the end of a round of decline, and it may stop falling and rebound in the short term, especially after the stock price has fallen sharply, the probability of the stock price rising is greater. However, the specific buying time needs to be grasped by investors in combination with K-line patterns, trading volume and other indicators. For example, if there is a reversal pattern of the K-line at the same time as the bottom divergence, or there is a trend of price increase, investors can buy it.
Actual combat chart: Figure 1-2 shows the daily K-line trend chart of Jiangnan Red Arrow (000519). The stock has experienced a sharp decline for more than half a year from its previous highs. A closer look shows that when the lowest price in the early stage was 14.70 yuan, the value of the 6-day RSI was 15.961, and the value of the 6-day RSI was 32.75 when the lowest price was 12.51 yuan. The stock price is falling, while the value of the 6-day RSI is rising, forming a clear bottom divergence. This shows that the stock price has fallen, the bearish power is running out little by little, the bullish power is beginning to accumulate, the bottom characteristics have been very obvious, and the K-line that created the lowest point and the K-line of the previous trading day formed a bottom reversal combination of yang and yin. At this time, investors should pay attention to the trend of the stock price in the later stage, and when the intraday bottoming signal is issued and there are signs of a large volume rise, they can follow up with an appropriate amount first, and once the stock price enters an upward trend, they can intervene in heavy positions.
Investors should pay attention to the following points when using the RSI indicator to buy at the bottom divergence:
(1) The position of the bottom divergence is generally below 20, the larger the value, the weaker the momentum, the smaller the value, the stronger the momentum, the more reliable the upward signal.
(2) In a downtrend, the RSI curve and the stock price sometimes have two or even three or more bottom divergences. The more times the bottom divergence occurs, the stronger the upward momentum and the greater the probability of an uptrend.
Second, the high death fork is sold
The high death cross refers to the fact that after the stock price rises sharply, the 6-day RSI indicator line in the RSI indicator enters above 80 from bottom to top, and then returns to below 80 due to the stock price peaking and falls, and crosses with the 12-day RSI indicator line near 80 downward, as shown in Figure 2-1.
The high death fork indicates that the stock price has ended a round of rising market, the trend has weakened, the bears have begun to have an advantage, the bulls are powerless to resist, and investors can buy the bottom in time.
As shown in Figure 2-2, the daily K-line chart of Zhenhua Heavy Industries (600320). In the last wave of the stock rise from 4.38 yuan to 9.23 yuan, the stock price rose rapidly from 5.20 yuan to 9.23 yuan, making the short-term 6-day RSI of the RSI indicator in the chart enter the overbought area above 80, and then due to the short-term increase in the stock price, there was a pullback, resulting in a downward death cross between the 6-day RSI and the 12-day RSI near 80. Careful analysis shows that when the stock price peaked at 9.23 yuan, there was a reversal combination of yin and yang on the K-line chart. Both candlesticks have encountered resistance near $9.23 and retreated. After the stock price rises sharply, there are two sell signals at the same time, indicating that the upward trend is very likely to reverse, followed by a sharp decline, investors must sell the stock in time to wait and see, otherwise the consequences will be unimaginable.
3. Sell at a high level
A double-headed high refers to a sideways movement after a sharp rise in the stock price, and the RSI indicator curve forms a double-headed pattern around 80, as shown in Figure 3-1.
The RSI indicator curve has formed a double head around 80, which means that the upward momentum of the stock price has weakened, and the stock price may build a medium and long-term head, and the stock price is about to turn from rising to falling.
Actual combat chart: As shown in Figure 3-2, the daily K-line trend chart of XCMG Machinery (000425). After the stock rose from around $7.00 to $14.02, the stock price began to peak and fall, and the short-term 6-day RSI above 80 formed a double-headed pattern in the RSI indicator marked in the chart. At the same time, the new high K-line and the highest price of the previous trading day are near 14.00 yuan, forming a flat-headed K-line combination. Two sell signals appear at the same time after the stock price has doubled, indicating a high probability of a reversal of the uptrend. Therefore, conservative investors can reduce their positions after a high double position, while aggressive investors can wait until the stock price effectively falls below the 30-day moving average before selling the stock.
Finally, whenever your trading system gives you a trading signal, money management is like looking left and right when crossing the street, and the best trading systems also need the protection of money management to keep you profitable. The key points of money management are as follows:
(1) Determine the maximum loss limit for each market, such as 1%-3% of the stake, the exact amount depends on the size of the account. For small accounts, limiting losses to 1% of the capital may not be practical. Because the stop-loss limit is too tight, the market price fluctuates frequently due to various factors, which may cause you to suffer a series of losses. There's nothing magical about the technique of establishing limits, it just helps to enforce the binding force and control losses in an objective and systematic way.
and (2) equiprising the risk of each position with the minimum amount of funds to be traded. It is a reasonable strategy to limit risk to a certain percentage so that a certain percentage of risk is acceptable, especially for trading. The amount of money traded is determined on a per-trade basis, often linked to market variability and, indirectly, to the risk and profit potential of individual markets.
(3) Retain 2/3 as reserves. Traders should not use more than 1/3 of the capital for speculative trading accounts as funds to hold positions. 2/3 must be set aside as a reserve, which can be held to earn interest and act as a buffer. If the equity in the account falls, it is necessary to look for opportunities to reduce the position in order to maintain the recommended 1/3 ratio.
(4) Truncate your losses. Whenever you open a speculative trading position, it is important to have a clear understanding of where your exit point (stop loss) is. Experienced traders, who sit in front of networked monitors, have a constraint point in their minds, and close their positions as soon as they see the price reach a safe exit point. They may not really want to place a stop-loss order on the floor, especially if they have a large position, because it may be a magnet to attract the attention of the floor trader to hit the stop-loss price. The key here is restraint, and not placing a stop-loss order does not have to be used as an excuse to be overly stuck in the market, nor does it have to be used as an excuse to delay liquidation at the stop-loss point.