Since it is a band, the cost of opening a position for the first time should be as low as possible. The difficulty here is how to judge whether the stock has fallen to a stage low. This is not difficult. Just use the MACD moving average to turn the bottom away from the package twice.
Take this trend for example. First of all, we must understand why stocks have fallen, and we must rule out factors such as the deterioration of stock fundamentals. If it is because the overall market is not good, the problem is not big, and the fundamentals will not change significantly.
Here we can use the basic knowledge of MACD, secondary winding +MACD green column shrinkage deviation+fast and slow line deviation to judge whether there is a high probability deviation in the stock price. Remember, there must be a secondary winding structure before falling.
The first deviation of this fast and slow line below the 0-axis, after seeing it, can open a part, about a third. After that, the expectation is mainly a rebound, not too high. The probability of direct pull-up below 0 is very small.
When this point deviates, we must follow the following trend. The first rising pressure level is the 0 axis. If the stock price can't break through the 0 axis, it may turn into a relay shock. At this time, it is necessary to confirm the trend, not to open a position again, but to wait until the stock price reaches a strong range.
From weakness to strength, see if the fast and slow lines will wear the 0 axis. Because it has oversold before, the fundamentals of the stock itself have not deteriorated, and there is a possibility of reversal.
This trend is smooth after deviating from the front and wears on the 0 axis. The day I put it on is generally not my opening point, but a signal that the stock price is strong. The rising strength here, if strong enough, will increase the probability of reversal.
There are two reasonable positions, namely, the first step back and the second step back on axis 0. I don't think it's meaningful to take more than two steps back to participate. This is also the two points of opening positions in batches, and each step is increased by one third.
The above are three points for sharing positions in batches. Some stocks may not have three opportunities, but may only have two opportunities. For example, if the bottom deviates once, only one trend will go up. Don't buy it hard at this time, and don't buy it if you don't have a chance. One vote, one person, one person divided into three times, one third of each position.
What should I do after failure? Everything will not go smoothly in the transaction. The above is the ideal state in the strategy, of course, there is also a trend of failure. I often emphasize that there is no 100% in any strategy or model. It is also important to figure out how to buy and sell.
Let's look at a few examples of failure and failure:
Taking this trend as an example, it conforms to the deviation characteristics in the early stage and rebounds after bottoming out. Only the later trend failed to get out of the reversal, but continued to innovate low, that is, after the deviation, it triggered a rebound and no reversal.
How to deal with it?
In this case, I might deal with it like this:
1, according to the way of opening positions in batches, the starting point may have already opened positions by one third. At this time, I will reconfirm whether the fundamentals of the stock have changed. If there is no negative, I may wait for the confirmation of the follow-up trend;
According to the above logic, you should give yourself a limit stop loss while waiting for the trend to be confirmed. Technically, it has fallen below the previous lowest point, and it is more reasonable to use the decline as the limit stop loss, for example, stop loss if it falls more than 7 points;
3. Don't make up the position, and don't make the subjective mistake of "I thought it fell a lot". Sometimes the trend is irreversible, indicating that the trend is stronger. Follow the trend, not the trend.
Advantages of opening positions in batches Generally speaking, opening positions in batches is a better strategy for making trends and bands. You know, if you are a good stock, you will be discovered by more funds, and this rise is more about synergy.
If the position is low enough, you won't Man Cang, because you can't subjectively think that the trend will reverse, but the probability of the bottom may be very high. In order not to be anxious, open a third of the positions first, which is called participation.
When we open a third of the position, even if the trend fails, the stop loss will not be too painful. Once successful, the cost will be very advantageous, and you will be more confident in adding positions in the future.
Opening positions in batches can avoid big losses, and first use one-third of the positions to make trial and error. If the transaction is right, it will generally make you profitable in a short time, which is equivalent to the first batch of positions as a test.
Conclusion Generally speaking, it is a good strategy to open positions in batches. Stock trading can't be blind and confident. As soon as it comes up, it is the risk that increases with the big position. In life, we will try many things first. A merchant strongly recommends his fruit, but if you have bought it, you might as well buy it with common sense first. When your verification is really good, you may become a frequent visitor to this store. In fact, this is the reason for opening positions in batches. Give it a try first and see if it can be done.
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