Category: Money Tips Date: 2006-09-29
When the stock market decline that, investors generally will not be scared of the stock market slowly Yindie, but ignored the crash Quotes am more afraid, because Yindie a small decline in per day, while the crash Shique make its own funds card and day, like K-line is also pulled out their "big yin." But in practice, and psychological sense of complete contrast, Yindie more horrible than the fall, the damage to investors is also deeper.
In the foreseeable future Yindie adjustments, always progressive destruction of investor confidence, patience and wealth. Long, continuous Yindie trend, making investors as if being warm boiled frog general, unknowingly bogged down, and so able to extricate themselves when alert. The short fall is the concentration of the release of energy can be reduced to some extent the adjustment period, and the slump is likely caused by a high degree of investor concerns and take appropriate measures to avoid the risk of losses and thus reduced to a lesser extent.
Since 1997, the Shanghai Composite dropped 11 in a single day plunge of about 100 points, market, crash 11 times a second trading day after the all-Yang Xian. In addition to the plunge this week, other than the three previous 10 times, 8 times triggered a rebound or reversal market, only two of sustained downtrend. This shows the crash itself does not resemble the less investors "terrorist."
The stock market There is a saying: "Do not buy them after the rose, do not sell during a slump after" Although the trading adage is just a general concept, but its theoretical basis is correct. Rise in the stock market investors, the process is the favorable profit opportunity, but it is also the risk of accumulation process; while the decline in process so that investors suffered losses, it is also market risk, the release process. Especially in the drop, investors should not be excessive even more bearish.
Made the market fall short forces are fully vent in the event of new money to re-intervention or a new theme with the stock market will seize upon this opportunity and started a quick rally. Or when bad news could trigger a sharp drop after the digestion, there will be a strong rebound. Therefore, investors need not fear slump, on the contrary, following a sharp plunge in the stock market rebound could take short-term opportunities.
A rebound following a sharp plunge in general has the following features:
First, because the rebound was born in excessive short-term decline, which is a natural rise in the stock rebound, plate features are often not obvious, and sometimes occur across the board broad based situation.
Secondly, some subjects will be the first to start stock, such shares are opening soon reach daily limit, to encourage market sentiment has played an important role as a leader of the rally.
Third, some oversold stocks, or shares of parity is obviously low to be followed by a rebound as the new force.
Fourth, some large blue-chip financial involvement in the case of warming trend apparent recovery has become the main force boosting the broader market.
Following a sharp plunge in participating in the rally, you need to pay attention to investment in key points are:
Concerned about the volume. Intensity of a strong rebound in the volume on individual stocks are in line with two characteristics: First, the amount of pre-down process can be withering, display unit short kinetic energy is inadequate; the other is in the amount of rebound in the process of rapid amplification, indicating involvement of incremental funding obvious; Second, pay attention to selecting stocks sexually active, dynamic and strong rebound in stocks. Ball falling from above, the whereabouts of the longer, the greater the landing force, the greater the rebound height. Same is true of individual stocks, short drop deeper down the faster of the stocks, which rebounded forces get stronger and also has better investment opportunities and maneuverability.
To grab a rebound, but not blindly chasing the high. Especially in the rebounding strength is not a very strong case, the blind pursuit of high may be stuck synonymous.
The opportunity to capture a rebound following a sharp plunge, we must keep a close eye hot and concerns of the mainstream market, the stock market leader in force and main force on the other follow suit of the "lone warriors" section of the stock, do not make too much attention.
