The banker reveals the experience of buying the bottom and adding to the position - under what circumstances not to buy the bottom

After two consecutive days of decline, A-shares once again fell below 3,000 points. Every time like this, it is a good time for us to buy at the bottom and add to our positions. However, bargain hunting often encounters various problems. The following is the bookmaker's experience compiled by the editor to reveal the experience of bargain hunting and adding positions. Under what circumstances cannot bargain hunting be made? It is for reference only. I hope it can help everyone.

The banker reveals the experience of buying the bottom and increasing the position

1. Leverage should be used with caution

It is the most dangerous to use leveraged funds to buy the bottom when the market is at the bottom. No one can predict where the bottom will be, especially in the short-term panic crash, which will lead to unimaginable low prices. Even for the bank stocks with the cheapest valuation at present, if the leverage is doubled and the leverage is doubled, it is difficult to say that the position will not be liquidated. If you must use leverage, be sure to pay attention to the leverage ratio and ensure that you have the ability to add additional funds.

2. The bottom is a range, not a point

Greedy manifests itself in two aspects: on the one hand, it is reluctant to sell when it is overvalued, thinking of going up again. Buy again; on the other hand, he hesitates to buy when the price is too low, thinking of buying at a lower price.

The bottom is not the lowest price point. In fact, no one can accurately buy at the lowest point. We don’t know how low the SSE 50 will fall in valuation, but we know that the SSE 50 below 10PE is undervalued.

As long as you make sure you are buying in an undervalued area, don't worry too much about whether it is the lowest point.

3. Don’t rush all the time, take your time in batches

It is also a common problem to rush to fill the position when you underestimate. If you buy up all your cash too early, you will become passive when a great opportunity actually arises. It is best to buy dips in batches, and the time interval between each dip is longer, so as to ensure that you always have room for investment.

4. When there is a general decline, it is the best time to change positions and adjust stocks.

I am used to holding multiple stocks in different industries. Even if the market is generally falling, different stocks The speed of the decline is also completely different. I have a preset increase range for each stock. For example, if bank stocks fall below the net asset value, Ping An will fall below the intrinsic value, Sichuan Investment Energy (0.00, 0.00, 0.00%) (11.18, 0.09, 0.81 %) (10.76, 0.02, 0.19%) (600674) is less than 10 yuan. Different stocks have different times to reach this increase range.

Summary

Falls are not terrible. In many cases, it is precisely because of the decline that we have the opportunity to harvest high-quality and cheap shares. But catching the flying knife also requires skill, and you will get a bloody head if you are not careful. Currently, both A-shares and H-shares have many stocks with good valuations. If you wait patiently for opportunities, add positions or adjust stocks in batches, it will become easy to hunt for the bottom.

Under what circumstances cannot you buy the bottom?

The first is that the market suddenly plummets from a high level after experiencing a period of upward trend.

This is usually a sign that the market trend is about to reverse, but there are three types of people who are likely to have the urge to enter the market and buy the bottom at this time: Takong who lost a large amount of profits because of premature selling in the early stage. Those who cut their stocks at the beginning of the market recovery because they are worried about another sharp decline, and those who are latecomers who want to make a fortune in stocks because they heard that their colleagues and neighbors have made money. Determined by the motivation of these people when they enter the market, they usually have little idea of ??stopping losses, so the result of doing so is likely to mean going through the entire bear market. For example, on July 29, 2009, the Shanghai Stock Exchange Index plummeted 5%. If you bought it on that day and held it until July 1, 2010, the cumulative decline of the Shanghai Stock Exchange Index would reach about 27%, and investors' stocks would be at risk.

Second, the market has experienced multiple consecutive days of decline and the decline is also considerable.

Usually those investors who have successfully escaped from the top and made money in the early stage see that the stock price has been lower than the last purchase price, and hear many experts in the media assert that they will never Maybe when it falls below a certain support level, it is subjectively determined that the opportunity to make money has come again, so it returns to the market again. However, whether it is the bottom will never depend on someone's subjective will, so buying the bottom in this way will usually end up "halfway up the mountain". If you realize that your judgment is wrong and you do not decisively stop the loss and leave the market, or you are stubborn, or you are lucky, you will usually watch the stock price fall more and more, and you will lose more and more. For example, on August 11, 2009, the market closed with a small positive line after four days of sharp decline. However, if you entered the market on this day and held it until July 1, 2010, compared with the 27% decline of the Shanghai Composite Index, , I'm afraid you won't be much better.

The third type is to blindly enter the market to buy the bottom based on the judgment of oneself or some experts only when major and substantive good news suddenly occurs during the market decline.

Experience shows that whether a piece of news that is enough to affect the market trend is good or bad, and whether it should prompt the market to reverse or continue to fall, is not determined by the subjective wishes of some people, but depends on the opinions of many people. The result of the mutual game between the short and short parties, so the results of rashly entering the market to buy the bottom are mostly disastrous.

For example, on September 22, 2009, the management directly launched three major rescue policies. On that day, the Shanghai Stock Exchange Index soared 7.77%. The media's optimistic view of the market outlook also occupied a dominant position. However, if you entered the market on this day and held it until 10 that year, On March 28, the loss will probably exceed 20%.

Do not buy the bottom under these three circumstances

The first is that the market suddenly plummets from a high level after experiencing a period of upward trend.

This is usually a sign that the market trend is about to reverse, but there are three types of people who are likely to have the urge to enter the market and buy the bottom at this time: Takong who lost a large amount of profits because of premature selling in the early stage. Those who cut their stocks at the beginning of the market recovery because they are worried about another sharp decline, and those who are latecomers who want to make a fortune in stocks because they heard that their colleagues and neighbors have made money. Determined by the motivation of these people when they enter the market, they usually have little idea of ??stopping losses, so the result of doing so is likely to mean going through the entire bear market. For example, on July 29, 2009, the Shanghai Stock Exchange Index plummeted 5%. If you bought it on that day and held it until July 1, 2010, the cumulative decline of the Shanghai Stock Exchange Index would reach about 27%, and investors' stocks would be at risk.

Second, the market has experienced multiple consecutive days of decline and the decline is also considerable.

Usually those investors who have successfully escaped from the top and made money in the early stage see that the stock price has been lower than the last purchase price, and hear many experts in the media assert that they will never Maybe when it falls below a certain support level, it is subjectively determined that the opportunity to make money has come again, so it returns to the market again. However, whether it is the bottom will never depend on the subjective wishes of some people, so buying the bottom in this way will usually end up "halfway up the mountain". If you realize that your judgment is wrong and you do not decisively stop the loss and leave the market, or you are stubborn, or you are lucky, you will usually watch the stock price fall more and more, and you will suffer more and more losses. For example, on August 11, 2009, the market closed with a small positive line after four days of sharp decline. However, if you entered the market on this day and held it until July 1, 2010, compared with the 27% decline of the Shanghai Composite Index, , I'm afraid you won't be much better.

The third type is to blindly enter the market to buy the bottom based on the judgment of oneself or some experts only when major and substantive good news suddenly occurs during the market decline.

Experience shows that whether a piece of news that is enough to affect the market trend is good or bad, and whether it should prompt the market to reverse or continue to fall, is not determined by the subjective wishes of some people, but depends on the opinions of many people. The result of the mutual game between the short and short parties, so the results of rashly entering the market to buy the bottom are mostly disastrous. For example, on September 22, 2009, the management directly launched three major rescue policies. On that day, the Shanghai Stock Exchange Index soared 7.77%. The media's optimistic view of the market outlook also occupied a dominant position. However, if you entered the market on this day and held it until 10 that year, On March 28, the loss will probably exceed 20%.