What does stock swing operation mean and its techniques?
When investors use swing trading, they need to formulate and implement swing operation trading strategies based on the characteristics of stock market swings. So today the editor is here to sort out the stock swing operations for you, let’s take a look!
What does the band operation mean?
The band operation means that people who invest in stocks will invest in stocks when the price is high. The investment method of selling stocks and buying stocks when they are low. Band operation is more important than finding a dark horse. There are main peaks and main troughs in the market every year. The peak is an opportunity to sell; the trough is an opportunity to buy. 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 major funds are actively involved. Because
Generally speaking, the band market is divided into six characteristics: wave axis, wave potential, wave trough, wave peak, wavelength, and wave amplitude. The wave axis refers to the relative balance position of long and short in the band market, and is the core reference factor in band operations. Wave potential refers to the overall operating trend and direction of the swing market. Usually the operating trend of the swing market maintains a certain slope upward or downward. The key to swing operations is to follow the trend and adopt different swing trading methods according to the different running directions of the swing market, including different running slopes.
Tricks for band operation in stock trading
Swing speculation is more important than finding a dark horse. There are main peaks and main valleys in the market every year. The peak is the opportunity to sell; the valley is the opportunity to sell. It’s a buying opportunity.
It is easy to grasp the band speculation, which is for the broader market. Many stocks have certain swing bands. We carefully study and judge some stocks and then determine the value area of ??the individual stocks. After they are far away from the value area, the market will experience the pressure of stock correction. At this time, sell again; when the stock price becomes undervalued After reaching the area, buy at a low level, hold patiently, and wait for opportunities. This will generally lead to greater returns.
On the whole, the market is always operating in a band. Investors must grasp the rules of band operation, make full use of the relative peak of the rise, seize the opportunity to sell; make full use of the turning point in fundamentals, and Buy when the market is pessimistic. You only need to do this a few times a year and you will get good benefits.
Expert stock band operation method
Only select stocks that have an upward trend and are in an ascending channel within a certain period of time for operation. The best time to open a position is the beginning of an upward trend, followed by the mid-term period. If there is a slight correction, increase the position. If there is a large correction, reduce the position. Leaving a certain bottom position will give you more opportunities.
Swing stocks are more synchronized with the market. It is best to stop band operations when the main trend and secondary trend of the market are both downward. If there are promising medium and long-term stocks, you can enter the market with a light position or leave a bottom position and wait for the opportunity to add to the position.
Only select stocks that are about to leave the bottom or have just left the bottom for operation. It is not recommended to select stocks that have risen for one or several rounds at a higher position.
Swing operations have high technical requirements and require a good mentality and the ability to analyze the market. Investors who want to perform swing operations need to learn a lot.
Daily band operations
When buying and selling, you must pay attention to the mood of the market: it is best to stop band operations when the main trend and secondary trend of the market are both downward. When the long-term upward trend is upward, the position of stocks that can be bought should also be relatively light. When the entire market is in a sharp decline, you must suspend this operation; however, after a few days of a sharp decline in the market, if you seize the opportunity and quickly perform swing operations, you will definitely make more money.
Work hard to learn technical analysis theory: Continuously improve your analysis, research and judgment level and practical ability. Only when you are confident can you have a good mentality and stable emotions, and can you see the language in the graphics that is difficult for ordinary technical analysts to break. , never believe in gossip and stock reviewers. Only by constantly improving your trading system and improving your trading level can you find the golden key to open the treasure house of wealth and earn the money you deserve.
Only select stocks with the main trend upward: stocks that are in an upward channel for operation, and never take risks with stocks whose important trend is obviously in a downward channel; when buying, it is best to choose stocks that are in a good main upward trend and in an intermediate level. Intervene as soon as the inflection point of the upward trend has just appeared, and sell as soon as the main trend encounters resistance and falls; for stocks that have been trading sideways at low levels for a long time, it is safer to intervene as soon as the volume starts to rise. .