Actually, bargain hunting? The key to success lies in the choice of timing. The following are three situations that easily lead to the failure of bargain hunting:
First, after a period of rising, the market suddenly plunged from a high level.
This is usually a sign that the market trend will reverse, but there are three kinds of people who are very likely to have the impulse to enter the market at this time: those who gave up a large part of their profits because they sold too early in the early stage, those who cut their meat because they were afraid of another big drop at the beginning of the market recovery, and those who wanted to make a big profit later because they heard that their colleagues and neighbors had made money in stock trading. Determined by their motivation to enter the market, they usually have little idea of stop loss, so the result of doing so is likely to mean that they will experience the test of the whole bear market.
Second, the market fell for several days in a row, and the decline was also considerable.
Usually, investors who have successfully escaped from the top to make money in the early stage, when they see that the stock price is lower than the last purchase price and hear many experts in the media assert that they can never fall below the support level, they subjectively think that the opportunity to make money is coming again, so they return to the market again. However, will it always depend on the subjective will of some people, so it is generally copied halfway up the mountain? . If you realize that there is no decisive stop loss after making a mistake, or you are stubborn, or you are lucky, you will usually watch the stock price fall more and more, and the more you lose.
Third, on the way down in the market, there suddenly appeared great and substantial good news, and you blindly entered the market for bargain-hunting based on your own judgment or the judgment of some experts.
Experience shows that whether a news that can affect the market trend is good or bad, whether it should prompt the market to reverse or continue to fall, is not determined by some people's subjective will, but depends on the result of the game between long and short sides, so the result of rushing into the market for bargain hunting is mostly ominous.
So, when should we choose to enter the market to ensure success? To sum up, there should be the following characteristics: first, the market will not fall when it is bad, or even go high and low; Second, the overall market turnover has shrunk to the level of land volume; Third, the major sectors have fallen beyond recognition, and none of them have survived; Fourth, the bearish voice in the media is still endless.
As long as three of the above four items are met, it is really time to enter the market.