What are the advantages and disadvantages of band operation_What does band operation mean?

I believe that many investors are familiar with band operation. In fact, band operation is a way of understanding the fluctuation patterns of the stock market. The better method has a very high success rate. The following is the advantages and disadvantages of band operation compiled by the editor_What does band operation mean? It is for reference only. I hope it can help everyone.

What does swing operation mean?

Swing operation refers to the investment method in which investors who invest in stocks sell stocks when the stock price is high and buy stocks when the stock price is low. To put it simply: the swing operation in the stock market is to sell high and buy low.

Swing operation comes from Elliott's wave theory, which believes that stock prices will be similar to waves, rising from the trough to the peak, and then falling from the peak to the trough, forming a cycle. The essence of swing operation is to chase the rise and kill the fall. Its operating principle is: buy at the trough and sell at the peak.

Swing operation is the best operation technique to obtain short-term profits when the market is in a volatile market. Moreover, this flexible operation method can also effectively avoid market risks, preserve financial strength and cultivate market feeling. A complete band operation process involves three investment points: "buying", "selling" and "stock selection".

Types of stock selection for swing operations. Stocks that are more suitable for band operations will have unnatural volume increases during the bottoming stage. The effective amplification of volume energy shows that incremental funds are actively involved. Because retail investors will not rush to build positions under the double blow of bad fundamentals and bad technical conditions, the heavy volume at this time shows that some panic orders are fleeing regardless of the cost, and the fact that the stock price has not fallen during the heavy volume just proves that There are mainstream funds taking advantage of the opportunity to build positions. Therefore, it can be inferred that this stock has great short-term opportunities in the future market.

The buying timing of band operations should refer to the bottoming center area. Repeatedly oscillating bottoming markets will naturally form a certain center area, and the market will circle around this center area repeatedly. When the index If it rises too sharply, it will fall back to the central area; when the index falls too much, it will rebound back. Based on this characteristic, investors can choose to actively buy individual stocks when the market falls and is far away from its bottoming center area.

Advantages and disadvantages of band operation

Advantages:

1. Band operation can seize the main rising band, prevent the bull market from going short, and make principal profits to grow effectively.

2. Band operation can avoid the main falling band, and the bear market will not be locked in, so that the principal profit is less likely to be swallowed up by losses.

3. Band operation has a high success rate and high safety factor in determining whether it is a rising band or a falling band.

4. Band operation can be adapted to both bull and bear markets, both bull stocks and bear stocks, and can maintain a certain level of profit.

Disadvantages:

Band operation has many advantages. Its main disadvantage is that it requires a high level of technical analysis and strong comprehensive analysis capabilities. Investors are required to have a strong psychology and strict execution discipline.

The advantages and disadvantages of band operation are very obvious. Its main disadvantages are that it requires investors to have good investment psychology and strong analytical skills. Band operation is not only a better way for investors to buy stocks, but it can also effectively avoid market risks, eliminate certain adverse factors, and reduce unnecessary losses.

What are the advantages of stock swing operation?

Swing operation is a stock investment method that adopts buying at low prices and selling at high prices according to the rise and fall patterns of market operation to obtain profit from the price difference. It is an operation method that uses the unique wave operation rules of the stock market to buy at low prices at the trough of the wave and sell at the high price at the peak of the wave. The advantages of band operation are as follows:

Swing operation can seize the main rising band, and the bull market market will not be short, so that the principal profit can be effectively increased; band operation can avoid the main falling band, and the bear market market will not be stuck, so that the capital profit can be effectively increased. Principal profits are less likely to be swallowed up by losses; swing operations are adapted to both bull and bear markets, bull stocks and bear stocks, and can maintain a certain level of profit.