How do novice investors buy stocks at the bottom?

How do novice investors buy stocks at the bottom? The so-called bottom buying means buying a large amount when it is predicted that the stock price has reached its lowest point and will start to rise soon. In this way, the investment cost is minimized and the income obtained will be relatively generous. So today the editor is here to sort it out for you, let’s take a look together!

How to buy the bottom for novice investors

1. Buy the bottom when the Bollinger Band BOLL continues to fall below the lower track. The success rate is higher. When the Bollinger Band of the entire stock market continuously falls below the lower track, it is difficult for the stock to continue to fall, so it has basically reached the bottom at this time. If the Bollinger Band BB is less than 0, there are signs of divergence, then You must buy immediately at this time. This is also the best time to buy at the bottom.

2. When the William indicator hits lows many times, the success rate is higher. Generally, in the mid-term of the stock market, the decline of the market will be maximized. At this time, the William indicator will also enter the mid-term adjustment state. If there have been multiple lows at this time, it may have entered the mid-term adjustment stage. Since the adjustment has begun , then I believe the stock price will pull back soon.

3. When the market enters a selling climax, trading volume can expand significantly and you can buy the bottom. Generally, when some small and medium-sized investors see a sharp drop in stock prices, they will start selling aggressively, which will lead to a selling climax. During this period, some short sellers have succeeded, so they will immediately start to pull back. If investors can persist until this time, they can start buying the bottom.

How retail investors buy stocks at the bottom

1. Follow the trend. Going short against the trend in an uptrend or going long in a downtrend will definitely lead to failure. Going with the trend requires investors to abandon all subjective analysis, recognize the market trend they are in, and move according to the trend. Because no one can accurately predict when the market rise and fall will end, blindly escaping from the top or buying the bottom will prove to be either too late or too early. Only by recognizing the market trend and following the trend can the risk be minimized. This is an essential stock bargain hunting skill.

2. Maintain sufficient positions. This can be said to be a very important stock bargain hunting technique. Investors can not catch the strongest stocks, but they cannot let their funds idle. Whether they are investors with heavy or full positions at high positions and follow the decline of the market, or investors with short or light positions after reducing their positions at high positions, they all need to maintain sufficient positions when the bottom appears. If you do not have a clear buying plan, you may wish to wait and see calmly and postpone selling to avoid accidentally losing chips.

What are the top-secret methods of buying the bottom?

1. Don’t be superstitious about the shrinkage at the bottom. The real bottom is not based on judging the shrinkage. If the volume can be long for six consecutive days and the volume can be enlarged for three consecutive days, then we can judge whether it is the bottom. The sky-high price reaches the top in three days, and the land price reaches the bottom in a hundred days. The formation of the bottom requires a rebound and oscillation, which is very tiring. Don't rush for the rebound of the V-shaped bottom.

2. The confirmation of the bottom also requires technical judgment. If the stocks are oscillating below the 20th, they are not forming a bottom. Judging from the shape, the bottom will gradually raise the bottom. The KDJ and RSI indicators are both bullish. The bottom is moderately heavy, and the bottom is long for a week in a row. Warm reminder: Don’t expect to buy at the lowest point to avoid being trapped again in the next downtrend.

How to buy the bottom of stocks that continue to decline

It is understood that several common bottom forms in technical analysis are: V-shaped bottom, arc bottom, W bottom, and multiple bottoms. Among them, V-shaped bottoms are mostly seen in plummeting and sharp market declines. Generally, there are major negative factors. The stock price falls rapidly in a short period of time. After a period of time, the negative factors are clarified and the market reverses quickly.

If you are buying the bottom of a continued downward trend, you should buy at the end of the downward trend. The V-shaped bottom is difficult to grasp, and you need to analyze the reasonable valuation of the stock based on fundamentals; the arc bottom is at the end of the decline. Gradually flattening, the number of small positive lines in the K-line chart begins to increase, and the trading volume also begins to gradually recover; it is best to start building a position when the W bottom and multiple bottoms are about to form a second low point.