Category: Money tips Release Date: 2007-07-16
When buying the stock quilt, the general investing public to take the initiative to do a thing again, bargain-hunting buying to cover short positions, in order to reduce costs, to achieve an early release from their lives which many investors will naturally think of a way to mitigate this . However, according to survey results were not very good. Quote all the way down, investors all the way to cover short positions, however, after the formation of a downward trend in stocks is often difficult to reverse, the bottom end there is often happened, the outcome of the majority of the blind bargain-hunting cover their short positions to cover their short positions in stocks is still re-sets, really puts on Canada sets, worse. Because at the end is very difficult to measure, and not to mention the decline accelerated after the formation of a downward spiral, that is, one way or the seemingly bottomed consolidation, often it is consolidation again after falling for some time step. So again cover their short positions, neither the end of copying, it has already put more money to both fill light, even if the afternoon rebound, but the unit in a weak atmosphere, a smaller rebound effort, not only failed to rebound to cover their short positions after the average price of the on the price even cover their short positions had not been met, so how can they cover their short positions got solution sets.
After four consecutive years of bear market, more and more investors realized that the "desperate" the danger of buying stocks, "progressive forces were divided," the principle has become a consensus. However, to truly implement the "progressive forces were divided," there is still a question of how the coded cover their short positions. The progressive tactics, it is "progressive forces were divided," the principle of specific application.
The so-called progressive and tactics, is this: Suppose you buy A-point, just by your grasp is the "bottom", and then rose to the B Quotes point, do you think rally late start, and no reason to rush to arbitrage; again in B points into a second "force" buy follow up the victory; Quotes rose to C point, that is a big Shenglang but the mid-point, plus-yard third branch "force" to build on this, near the "peak" only "withdraw troops Ming Jin, return after victory back North Korea. " Therefore, the progressive tactical advantage of the opportunity can also be called overweight.
Correct application of progressive tactics is necessary to pay attention to three points:
First, to make money when their investments. Because to make money when their investments are Junichi the line, "yielded to" buy or sell and buy after prices soar in the wind after the fall has not only re-sell, so the expansion will enable victories. If overweight lose money when it is "gone against the tide and the line" deeper into the mire of the error. Therefore, the investment experience of a specific person to raise the vicious, but "only gashun yards, not against the code."
Secondly, no one in the same price near overweight. If you are 5 yuan to buy a stock, it should be so Quotes plus yards to cover short positions rose to 5.50 yuan, up to 6 yuan to continue to do third pen purchase transactions to cover short positions overweight. If the 5 yuan to buy the first transaction, the market leather, in the second tranche of 4.95 yuan they bought to cover positions trading 4.90 yuan to buy the third transactions coded to cover short positions, then three soldiers and horses were scattered in the vicinity of 4.95 yuan price If the share price fell below 4.90 yuan will be fitted across the board, while the stock price plummeted, if all the way, then you will lose too badly, so it not that "desperate" it?
Third, do not "inverted pyramid" style overweight. When you are ready to do a progressive tactics when the allocation of funds is very important, a second soldier than the first few soldiers, the third branch soldiers should be more than a second few soldiers. This three soldiers, the average price of more favorable. On the contrary, each coded to be more than the original, making long, then it will pull the average price was getting higher and higher, market conditions slightly again, putting the original floating profits have swallowed up at any time to lose money by the money into.
Implement the above three issues, the progressive tactics before the power play. Otherwise, the "decent also be twisted and misrepresented confused ideas" - just the opposite.
