Contrarian stock trading refers to establishing a position that is opposite to the current market sentiment or trend.

Notes on trading against the market:

1. Fear of missing the money-making opportunity of rebounding against the trend

The rebound opportunity is fleeting. If you miss it, you must learn to give up. , before the trend is reversed, avoid chasing rebounds or corrections, otherwise you will be exposed to the forefront of risks. When operating against the trend, you must learn to be patient and wait. Investors who can trade in both directions should actively prepare to trade with the trend.

2. Afraid that the trend will reverse and miss the opportunity after the trend

Three feet of ice does not freeze in a day, and the reversal of the trend cannot be completed in an instant, just like If a car that is moving forward wants to reverse, it must go through a process of decelerating, stopping, reverse gear, and gradually accelerating into reverse. Therefore, unless there are clear signs that the trend has reversed, the nature of counter-trend trading still dictates that the operation can only be a rebound idea.

3. Be greedy for cheap

Cheap goods are not good, the cheaper they are, the less likely they are to buy them. Remember one thing: a downtrend will never end because it falls too much, and an uptrend will never stop rising because it rises too much. A rebound must have a signal. A rapid oversold rebound after a sharp decline is often not an opportunity that ordinary investors should seize.

4. Coveting huge profits from heavy position operations

Contrarian trading is very taboo with heavy position operations, because the foreign exchange market is unpredictable. Only by reducing positions can we reasonably control risks. How can we not control positions reasonably? Achieve "small losses and big profits".

: Stock concept

1. A stock is a kind of marketable security. It is a share certificate issued by a joint-stock company to investors when raising capital, representing its holders (i.e. Shareholders) ownership of a joint-stock company. Purchasing stocks is also part of purchasing the business of the company, and can grow and develop together with the company.

2. This kind of ownership is a comprehensive right, such as participating in shareholders' meetings, voting, participating in the company's major decisions, receiving dividends or sharing the dividend difference, etc., but it must also be responsible for the company's operations. The risk of errors. Obtaining recurring income is one of the important reasons for investors to buy stocks, and dividend distribution is the main source of recurring income for stock investors.