Category: Money tips Release Date: 2007-07-21
Potential investors to have this kind of experience that he bought after the stock or sell the stock later, the stock may continue to rise, it may U-turn down, then under what circumstances they should be buying back shares or holdings of stocks?
Increase in position or buy back the positions all call to cover short positions, margin calls can effectively reduce the investors holding the cost of rising trend in increasing the profits of a bargaining chip, thereby achieving even greater profits. So, under what circumstances investors to cover their short positions should be taken to operate it?
Great era of investment, Wang Shun said: "In the current of the stock market, investors need to cover their short positions, the key will also depend on the movement of individual stocks. Is now a large number of listed companies, was mixed, regardless of how the next tape operation, there must be some strong stocks continued to up, choose such a stock can actively cover their short positions; on the contrary, if not selected stocks that investors are advised not to risk cover their short positions. As the current stock market as a whole or large investors cover their short positions when the operation still need to be cautious. "
Sun Peng, an analyst at CITIC Construction Investment believes that: "In general, investors should cover their short positions have emerged profitable stocks, the stock stop there stuck, if it is already sold, can be a pullback to the 20 MA at bargain-buy back. "
Many investors tend to prefer to sell the stock after buying back its own shares has been speculation really no need for this, Wang Shun said: "do not have to cover their short positions to buy their own holdings, in most cases, cover their short positions to buy their own already holding shares, the shares of stock due to have been more familiar with, plus we can do intraday 'T +0' a head start conditions, the probability of a natural big profit. However, when investors cover their short positions Thinking out of inertia must be limits: he did not hold stocks can cover their short positions. because investors cover their short positions do not forget that the ultimate objective? position is to reduce overall costs and increase profit opportunities. Therefore, whether to choose their own cover their short positions before the buying the stock is not the crux of the problem, the key is to strive for profit maximization. To this end, investors need not restrict the right of the stock of their choice. "
In addition, investors should pay attention to controlling the risk of margin calls. Cover their short positions when the greatest risk exists in some investors to cover short positions using the wrong method: A typical approach is to use a sub to cover short positions, we should gradually cover their short positions methods of operation, this is not correct, the most successful action must be sought to cover their short positions once successful. The risk of margin calls from investors to cover short positions is also a lack of stop-loss of the sense of operation. In fact, the fundamentals such as major changes in market conditions or the major turning point in market conditions, investors still need to come up with ton output capacity determination. In other words, to cover short positions and stop-loss are mutually reinforcing, if not the courage to stop, the best and do not easily cover their short positions.
