1. Brief description of the 20-day moving average buying and selling method: Based on the 20-day moving average in the stock trading system, once you find that the closing price of a stock or fund on the day happens to stand above the 20-day moving average, buy the stock before the close. Or fund, on the contrary, once the closing price of the stock or fund is found to fall below the 20-day moving average, the stock or fund will be sold before the closing price. This operation method is particularly effective for the secondary market trading operations of ETF funds and closed-end funds. However, for the radical part of stocks or leveraged funds, the operation effect is slightly worse due to the frequent rise or fall limits. Below I use 510180 (180etf ) to illustrate its specific application.
2. Assume that an investor began to operate 180etf funds in the secondary market using the 20-day moving average buying and selling method in January 2011. The first purchase time was January 31, 2011, and the highest price on that day was is 0.644 (the 20-day moving average price is 0.641), the selling time was March 15, 2011, and the closing price on that day was 0.665 (the 20-day moving average price is 0.675, and the lowest price is 0.653). The profit of this transaction is 2.5%, and the second transaction The buying time of the transaction was March 23, and the closing price of the day was 0.681 (the 20-day moving average price was 0.676). The selling time was March 31, and the lowest price of the day was 0.674. The third buying time was April 1. The closing price of the day was 0.689, the selling time was April 20, and the lowest price of the day was 0.690. The total result of these two transactions was a slight loss of 1%. The purchase time of the fourth transaction was June 23, and the closing price of that day was 0.626. The sale time was July 21, and the lowest price of that day was 0.641. The profit of this transaction was more than 2.3%. In the same way, the buying time of the fifth transaction is August 25 and the selling time is August 30. The buying time of the sixth transaction is October 25 and the selling time is November 16. The difference between these two transactions is Profit and loss were basically flat. The most recent transaction was bought on January 9, 2012, with the closing price on that day being 0.512, and the selling time on March 14, 2012, with the lowest price on that day being 0.556. The profit on this transaction should be more than 8.5%. At present, because the price of 510180 has not touched the 20-day moving average, the operation is temporarily in a wait-and-see state. Once the closing price of a certain day stands above the 20-day moving average, the operation will start again. To sum up, we used the 20-day moving average buying and selling method to operate 180etf. There were only 7 transactions in a year, and the trading result was a profit of more than 10%. The Shanghai Composite Index fell by about 20% during this period, which not only effectively avoided the bear market It has eliminated the systemic risks in the stock market and achieved better profits. Below I summarize the characteristics of this trading method.
Trading objects: ETF funds and actively traded closed-end funds are the best. At present, it seems that the SSE 50 ETF, SSE 180 ETF, and Shenzhen 100 ETF are all better targets. For stocks that investors are familiar with, It can also become a trading target, but it is best not to choose ST stocks when choosing stocks to avoid excessive daily limit, low limit, or even trading suspension.
Trading rules: simple and easy to operate. Based on the closing price of the underlying asset, if it stands above the 20-day moving average, it will open a buying position, if it falls below the 20-day moving average, it will close the position and sell it. The rest of the time, it will be in a wait-and-see state without any transactions. Effectively overcome greed and fear in the transaction process to achieve the purpose of obtaining investment returns.
3. Note: Strictly follow the trading rules. Since it is based on the closing price of the underlying object, it is required to pay attention to the target of the transaction within half an hour before the close of each trading day to decide whether to buy or not. When selling, do not conduct unnecessary transactions at will and effectively control transaction costs.
As a stock broker, I was once asked by an investor whether brokers can help clients make money. Regarding this issue, it may be difficult to help investors directly make money from the perspective of recommending stocks or funds, and it may even cause investors to lose money when the market is bad. However, if we can provide investors with better investment methods, Providing some reasonable asset allocation suggestions and helping investors establish correct investment concepts has achieved the purpose of writing a blog. I hope that the 20-day moving average trading method I wrote today can be better mastered and used by you.