Chasing up and killing down is a technical term in financial markets. It is a trading mode of financial technology, which is contrary to the operation mode of bargain-hunting. Specific operation mode: buy financial products when the prices of financial markets (stocks, futures, foreign exchange, etc.) rise. ) rise, with a view to rising more, and then sell it at a higher price for profit. Sell financial products when the price of financial market falls, and buy them back at a lower price in order to obtain the benefits of falling prices.
In the actual process of stock trading, "chasing up and killing down" is synonymous with a speculative operation. Market analysts often warn investors not to chase up and down. Although chasing up and down is risky and speculative, it is more active and has a higher degree of grasp of individual stocks than chasing up and down.
Therefore, investors should not deliberately avoid the strategy of chasing up and killing down in specific stock operations, but should look at it with a rational eye. Although chasing up and killing down is a desirable operation method, certain principles and operation strategies must be followed in the operation, otherwise it is easy to lose money if you are slightly careless.
Extended data:
If in the short-term operation, we encounter the mentality of greed, quick success, worry about loss, arrogance and blind self-confidence, we can try to adjust in the following ways:
1. Strict stop loss
For short-term investors who have just entered the market, buying stocks is the easiest to be trapped because they don't know how to buy them. The number of quilt covers is more, the mentality of stock trading is easy to be unbalanced, and pessimism often appears, which eventually leads to the "ostrich mentality" and simply kills it and does not sell it.
2. Improve the success rate
Short-term investors strictly implement stop loss and don't have to worry about being stuck. However, if you stop too many times, you will never see the profit, and it is easy to spoil your mentality. To this end, we need to improve the success rate of each operation, so how to improve it?
First, we need to judge the trend of the market. If there is a strong market, the success rate of our short-term business will greatly increase. On the contrary, the success rate will be greatly reduced. When the market resumes every night, short-term investors are advised to look at the fundamental policy information and other people's stock reviews, study the technical indicators of the market, and judge the market trend with their own judgment.
Secondly, the stocks involved must be strong stocks, so that the short-term profit space will be large. It can be found through the rising list of Shenzhen and Shanghai stock markets, and comprehensively judged by combining K-line shape, technical indicators and trading volume.
Learn to wait
In bull market and bottom, learn to wait. Don't worry about the stagflation of the stock you bought. As long as there is no problem with the fundamentals of the stock, there is a chance to make up for it. Don't be jealous just because you don't go up for a while. Look at how much others have earned. Eventually lead to mental imbalance, impatience, leading to chasing up and killing down. This is the taboo of stock trading.
4. Stop winning in time
For short-term investors, after earning a certain profit in a short period of time, if they continue to be greedy and do not take profit in time, the profit will soon be swallowed up when adjusting. At this time, investors are easily agitated and regret not selling stocks at the highest point. So it's important to stop winning!
What is a win-win situation? That is, when the stock rises to your satisfactory target price, it will be shipped. This take profit price can be selected according to your preferences, the trend of individual stocks and the situation of the broader market. For example, in a bull market, the stop-loss position rises by 20%, and in a bear market, the stop-loss position is 5%.
5. Correctly understand the loss
The main reason why many short-term investors are in a bad mood is because of losses. The loss may be attributed to the bad market; The second loss may be attributed to the bad stock; The third time I lost money may be because I was unlucky ... After many losses, I would doubt my ability. Why did others make money, but I always lost money, my confidence began to lose, and my mentality began to deteriorate, so I began to be impatient, began to gamble, and eventually fell into a strange circle of losses.
References:
Baidu Encyclopedia: Kill it