“Follow the trend” is a wise saying well known to many investors, and it is also a technique for chasing the rise. Its meaning has been enriched a lot by the majority of investors. It has a narrow sense and a broad sense: "Following the trend" in the narrow sense means that investors should follow the trend of the market (general trend) to determine their own operating behavior. In a broad sense, it means that investors must not only follow the trend of the market to determine their own operating behaviors, but also closely follow relevant policies to determine their own operating behaviors. The stock market of any country is affected by its own politics and economy, as well as relevant political and economic policies. "You have to follow the stock market, otherwise you will be laid off."
"The trend is your friend." This famous saying in the stock market means that you should never be an enemy of the general trend, and never go against national policies and regulations. Be against. The fluctuations of the stock market are affected by political, economic and other factors, and are greatly affected by policies. Since the end of 1996, this characteristic has become more obvious. Investors should not only study the rules of the stock market and how to make money, but also care about national politics, national economy and national policies. As my country's national economy continues to grow, the biggest bad and good news may be national policies. Investors, please remember: "Never be an enemy of the general trend, never be an enemy of national policies." This is also an excellent operation method of "following the trend". "Trends are your friends" includes policy-based political trends. "Never be an enemy of the general trend, never be an enemy of national policies, the trend is your friend." This famous stock market saying has profound meaning and wisdom in investment strategies.
“Trends will change.” However, this change is not sudden and unpredictable. Under normal circumstances, the reversal of the market has a gradual process. This process is: upward start - gradual rise - sharp rise - high oscillation - downward breakthrough - one by one stagnation and consolidation. In addition, there are many characteristics before the market reverses, and there are reversal signals. By combining various technical indicators with actual operating experience, you can correctly determine the reversal of the market.
"Price trends" also change. Because stock prices change every moment. After a long period of instantaneous price fluctuations, a stock's "overall price trend" will be formed. Although there are many factors that affect stock prices, "speculative factors" are one of the most effective external factors. Stock operators with a speculative mentality can make stock prices rise or fall. A banker who can influence the price of a stock has a large amount of funds in his hands, coupled with good information, he can indeed "call the storm". In the eyes of many small and medium-sized retail investors, it seems that the stocks are in the hands of the bankers. "Operation against the market" is an investment strategy. But not for this time. Don't deliberately touch an egg against a rock.