Category: Money tips Release Date: 2007-05-11
Into the index hit record highs in 2006, and June 2 appeared in 2006 a new high of 1695.58 points. Constantly upward price shocks, investors saw hope to make money. However, there are still some price fluctuations at a loss for investors. Mainly there is no objective scientific method of trading decisions, for fear index earned money. In particular, the Shanghai Composite Index since June 6, 2005 fell to low of 998.23 points, after rising by June 5 closing 1684.62 points, the calculation, the index rose 686.39 points, or more than 60%. According to statistics, so far there are about 1200 more than doubled the stock's share price. In addition more than 300 stocks rose while not doubling, but also has more than 50% of the gains. Some people may ask, have risen so much, will be up later do, as well as money-making opportunities do, is not an investment risk than stock market returns bigger? Want to enter the market in the hearts of the prospective investors have such a question, just to enter the market of new shareholders in mind there is this doubt, even hardened investors the same old doubts about the current of the stock market.
In fact, the opportunity to make money on the stock market is not limited to the bull market, bear markets have the same opportunity to make money. To the current cities of Shenzhen and Shanghai's 1800 or so stocks, funds, warrants and other varieties, only fail to rise, it would only still up, it is important that investors have no way to grasp the opportunity to make money, there is no way to control risk-averse . If you do not have the method or methods are not quite right, even though the opportunity to make money, and money-making opportunities before us can not grasp. In the index rose as high as 60% of the cases, as well as most investors do not make any money, and even costing him a lot. The reason is very simple, without a proper trading decision-making methods, in the transaction chase sell into frequent operation, frequent convertible. Not only loss of money, but also lead to physical and mental exhaustion.
Shanghai from the current stock market index and Shenzhengchengzhi terms, the index of regular running on 10 and 20-day moving average above the line, when stock index fell to 20-day moving average have emerged stronger support, after they have there will be a new high. June 5 indexes of the two cities were closed at the 10 and 20-day moving average above the line, indicating the bull stock market is still moving line. So, the bull market investing in stocks how to control risk? Many investors use the stock technical analysis methods, several technical indicators used to verify the trend using both the trend, which is not desirable. Because several indicators to reflect market fluctuations in the speed of the internal methods, indicators will appear at the same time contradictory phenomenon, does not correctly validate the trend of the real trend of the market outlook, resulting in trading psychology contradictory and difficult, resulting in failed transactions. At this time failed to identify the real reasons for failure, but this indicator are not allowed to use another indicator, forming a volatile state, thus starting a vicious circle and eventually the loss of heavy losses. In fact, in the stock market technical analysis should be taken in the correct analysis is that the choice of an effective technical indicators consistently use any valid technical indicators are not Moslems and accurate, as long as the compensable earn less is effective. For example, in K-line diagram to select only the moving average line, we can correctly analyze and judge the latter part of the trend.
Generally speaking, the moving average line is designed to follow the trend, it can not jump on the market foresight, or to allow traders to buy at the lowest price and the highest price to sell, but it can accurately grasp the wave Quotes 70 % of the volatility in the stock or the price change can be powerful only when you send a clear win or stop prompts. The rule is: When the 10-day moving average line wearing a 20-day moving average, the stock's closing price to close at these two above the average for the effective Jin Cha, it may buy. When the 10-day moving average line to wear when the 20-day moving average, the stock's closing price to close at 2 under for the effective average Sicha, it may sell hedge their risks.
Recent share price there is an obvious feature of the transaction, when stock prices withdraw sword to the 20-day moving average line, heavy volume up in time with the entry. Increase the amount of time should be before the Su Liang three times the amount of falling, and that the greater the amount of the day, after a few days the greater the room to rise. In the 35 days period, there will be about 10% higher, when the rise of 5% -10% of selling decisively to carry out short-term transactions to circumvent price increases the risks of a correction.
In the long-term investors may be based on 10-day moving average line and the 20-day moving average of the state to buy or hold, or sell also. This can guarantee that the proceeds will not be reduced, but also the stock in the sub-rising start in time for intervention, and will not Ta Kong.
At present, although the stock market has made great gains, but stuck in part by the depth of the investors, not some sort of relief. In the bull market, if the insist on holding the stock in the hands of the proceeds would be nice, but the quilt's stock, especially in the deep sets of stocks, not to-band operation is very difficult to sort of relief. Therefore, investors can also be fitted under the 10-day moving average line and the 20-day moving average line prompts band operation, in order to achieve some sort of relief as soon as possible to avoid risks, and profit objectives.
