How do I set the stock s target price Money Tips

Category: Money tips Release Date: 2006-07-23

Sell the stock is the most difficult thing in a certain sense, when selling the stock even more than when to buy stocks, what stocks to buy even more difficult, but even more important. Although the stock price target on the various theories, but in general, investors can grasp the following points: First, the previous resistance level z; 2, tape it peaked; three to measure the increase is 50% or 100% and so on.

The so-called pre-resistance, when a stock price close to the previous resistance level, if not further increase the momentum, then jump across the difficulty of this resistance will be very large, investors may wish to take out or lighten up. Stock price movement during the formation of every high has its own special reasons, and this high point, once formed, will be the follow-up on the stock price movement is an extremely important role in a quilt in the vicinity of the point and a bargaining chip in At this point the stock will once again campaign to generate some sort of relief requirements, Furthermore is the stock investors in the road to this point will produce a psychological fear, profit-taking pressure increased. Therefore, if the previous resistance level, in particular, is an important resistance level has not been broken, or if investors in the stock's price at this time there is doubt, then it can consider lighten up, if just in the market, the high point, there out of the need for .

Under normal circumstances, the linkage of individual stocks and the broader market is still very strong, broad market uptrend buy stocks when the probability of making money far exceeds the broader market trend or a decline in the disk, if the broad market peaked, while almost 90% of the shares will be subsequently sink. Therefore, to determine whether the peak is to consider whether the broad market to sell an important indicator of the stock. By this method of operation there are several points to note, one of the market's peak signs and signals can have a reasonable grasp, followed by the addition does not have to bear with the broader market's 10% of the stock at this time continued to increase risk. In other words. This approach requires on the tape can see the other, but also a "willing" courage.

As for the method of measurement increases, there are several special about: First, this method is not applicable to all shares are generally used more effectively on strong stocks; second, measuring increases in stock prices starting point need to be handled with care. If you can not grasp very well, it is best not to use this method, otherwise, they will mislead yourself or someone else.

Apart from the above three methods, there are experienced investors, there are other very effective methods, such as indicators of law, which can be used on-line, but also can be used weekly or monthly line; average line method to see if stock prices fall breaking of a moving average; top and bottom depart from France, and so on.

I would like to draw the attention of investors is that each approach has imperfections, the use must not be too mechanical. In addition, the highest point of selling only luxury, it should not mind too much profit is not satisfactory, so as not to undermine the peace of mind. In the market, if too demanding, then the end is only a "regret" the word: regret did not buy it, regret not sell, regret selling early, and regret positions lighter ... ... So, leave a little room for investment, then a small one copies of regret, but also be possible to earn a little money often