The use of short-trap stock picking Money Tips

Category: Money tips Release Date: 2006-11-14

The so-called bear trap, simply say the market is the mainstream of money trying to short, through the disk has brought out clearly the weak form, to induce investors to panic selling of stocks. Recently, leading shares have diving, fast straight down, then investors to use "short trap" conditions are ripe for stock picking.

From a technical analysis point of view, bear traps in the K-line combination of features is often a long consecutive Jigen Yinxian plunge through a variety of strong support level, and sometimes accompanied by gapped down the gap in the market panic sparked a chain reaction; in form, the short trap technology is often deliberately induced forms of Po Wei, so that investors mistakenly believe that space for a huge fall afternoon, but have thrown their shares so that the main force in the low to undertake a large number of cheap stocks, then investors are often opportunity to intervene where such stocks. The technical indicators, technical indicators bear trap will lead to a serious departure from the characteristics of, and not one or two indicators of which deviated from the phenomenon of multiple indicators is often simultaneous departure from the multiple cycles. Therefore, investors should first identify the bear trap from the technical side, and then from the fundamentals of the implementation of stock picking.

If international oil prices due to high operation and the international chemical industry on an upward cycle in the rise of China's petrochemical industry is still among the channels, if the industry's stock plummeted, and technically in line with "short trap" the establishment of the conditions, it will be our stock-picking objectives. At present, such a boom industry, similar to the petrochemical industry there are many of them have been in a bear market, "victimizes" the possibility of large, investors can learn by analogy using the principle of short trap.

It is noteworthy that, due to prolonged drop in the stock market will be in the market to form a heavy hold-up disk, popular have gradually been exhausted. However, sentiment in the market are often extremely low moment, just note at the bottom of the stock market is not far away from the real. Therefore, learn how to use "bear trap" stock picking requires not only rational observation, but also greater confidence and courage.