What are the techniques for bargain hunting when stocks fall below the limit?

There is a famous saying in the stock market: novices die from chasing highs, veterans die from buying lows, and masters die from leverage. Buying the bottom is not fun. At the end of a bull market, there are basically a lot of people buying the bottom. So today, the editor is here to sort out the relevant knowledge about stocks for you, let’s take a look!

What are the techniques for bargain hunting when stocks fall to the limit?

1. Bad panic and the fall to the limit. After a round of rising prices in the early stage, this type of limit-down is caused by the stock releasing bad news, causing retail investors to trample on each other, and the market makers take the opportunity to attract funds without blocking. However, it takes time for the news to evaporate, and the market sentiment cannot be eased in the short term. There may be a period of decline after the decline. If the market is falling, you cannot speculate on the bottom for the time being. You need to wait for the market to resist the fall after the impact of the news has passed, or consider it after the announcement of bullish news.

2. Low limit. This type of stock falls to the limit when commitments among circulating shareholders expire, sales restrictions expire, etc., which leads to another sell-off after the stock price reaches a low level. At this time, retail investors have lost confidence in the stock, but often all the bad news is good, and the stock returns. To a reasonable valuation, if the price falls without closing the market and increases the volume, there will be funds involved. At this time, you can wait for the decline to stop and then speculate at the bottom.

What are the methods for stock hunting

1. Maintain sufficient positions. Whether they are investors with heavy or full positions at high positions and follow the market decline, or investors with short or light positions after reducing their positions at high positions, they all need to maintain sufficient positions when the bottom appears. You must not seize the strongest varieties, but you cannot let your funds sit idle. On the one hand, we must establish the awareness of preventing shortfalls. If the crash has already occurred and it is very likely that the bear will give up the bull, it will be even more stupid to cut the meat and light the position.

2. Maintain sufficient laws. To operate at the bottom, you must not only maintain a sufficient position, but also have a certain degree of passion, and at the same time, you must abide by the operating laws. Generally speaking, we must adhere to: sell when it rises, be bold but not greedy, and have no regrets after selling; buy when it falls, be careful without panic, and have no complaints after buying. The methods of selecting operations are as follows: stocks that are associated with sectors or individual stocks that have a good growth rate in a certain period, but whose growth rate lags behind and may have the potential to make up for growth.

What are the techniques for stock hunting

1. Trading volume. When the trading volume appears large, it means that after a long period of decline in the stock price, the short-selling energy is close to exhaustion, and it is a sign that the stock price has been adjusted in place, then investors can carry out bargain hunting operations. In addition, when the macro-economy recovers, a large amount of funds flow into the stock market, and the market begins to rise, it means that the stock market has begun to bottom out and rise, which will drive individual stocks to rise, and investors can carry out bargain hunting operations.

2. Technical indicator analysis. When the KDJ and MACD among the technical indicators have been running below the 0 axis for a long time, there have been multiple golden crosses, and they have started to move above the 0 axis, then investors can carry out bargain hunting operations. Reminder: The arc bottom gradually flattens at the end of the decline, the small positive lines in the K-line chart begin to increase, and the trading volume also begins to gradually recover; W bottoms and multiple bottoms are best to start building positions when the second low is about to form.

What are the techniques for accurate bargain hunting?

1. Stand on your head and shoulders, you can expect a big rise. After the market and individual stocks have fallen for a long time, there have been signs of stabilization. The daily K-line has formed a head and shoulders bottom shape, and the right shoulder position has begun to increase in volume and has broken through the neckline, so you can buy boldly. In addition, if there are signs of stabilization and the daily K-line forms a double bottom, you can also consider buying.

2. The hidden dragon goes out to sea and soars into the sky. After the market and individual stocks fell for a long time, they opened sideways and the daily K-line formed a latent bottom. The right side of the bottom has begun to increase moderately. Once it breaks through the top of the box, it can be bold. Buy.

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