Chasing up reflects a profit-making psychology of investors. When they see the stock price rise, they will catch up immediately, expecting the stock price to climb all the way, so as to achieve the purpose of profit. The crash reflects investors' risk psychology. When they see the stock price falling, they are afraid of a bottomless decline, so they should sell quickly to avoid losses.

Absorbing on dips means eating when the stock price is relatively low and throwing out profits after the stock price rises in the future. This is a principle that a master trader must follow. Only when you buy at a low price and the stock price rises can you expect to earn a higher price difference and get a higher income.

Extended data:

From the analysis of the early signs of stock price decline, it can be roughly divided into the following forms: First, when the volume breaks through in key positions, it should be killed. The decline in the trading volume of a stock indicates that the dealer has signs of shipping.

Therefore, the shipment must be carried out at the same time as the dealer. Secondly, when a moving average system begins to show signs of turning back, it can be considered as a sign of initial decline. Technical indicators can be set according to actual needs. For example, the moving average system can be set to 3 days, 7 days and 55 days. If the 3-day and 7-day EMAs turn back, it can be considered as the arrival of the initial decline stage. This operation may be wrong sometimes, but it is accurate in most cases.

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