Category: Money tips Release Date: 2005-12-23
In response to years of investment in the line of thinking often, there are some errors:
One view is that: When you can buy wire Guaitou up, in fact, the stock market's history, the annual number of lines Guaitou up extremely limited, and therefore not operational. Moreover, the annual line unresponsive, and sometimes up until the bull market or less, the annual line just go flat. Example: in 1999, "5.19" Quotes.
There is another view: Breaking the Line after the year I can safely buy. This method work? Broader market in recent years, we have a breakthrough year by summing up the line of some laws can be found. From 2001 index peaked at 2245 points, and begin to bear market cycle, there have been five times hit-year line, in addition to the other, the former there are three of the four came back with nothing of. 2002 "6.24" big breakthrough year for cable makes the stock quickly, but it can be seen year-line index of the formation of explicit pressure on the broader market in order to line the track Zhu Bo-year decline. In April 2003, after the breakthrough year for cable, and soon its peak; September 24, 2004 years, almost touching the top of the line position of the formation. Only at the end of the year in 2003, the line break is the most successful stock index was formed after a powerful breakthrough in the highs. However, this breakthrough for years, the success of the line is not easy, and stock first breakthrough in the December 10-year line, but then profit-plate selling pressure, re-stock index fell back below the year, until December 22 resolution line break after the second year to form a good rally.
Line break through years of market phenomenon analysis, we concluded that the index has just been a breakthrough year when the lines are still not the best the best time to do more. Thus, in response to years of line in the battle of the stock market investors need to adopt the "one stop, look at two, three through" principle. If the years, as rail lines, then we are off the rails must be done before the three points:
First stop, the year when the line was broken for the first time, investors should not be too aggressive trading operations, a profitable stock, why not sell out to honor a profit; second is to look at the focus is to see whether the firm index years of line, even to re-wire can not fall below the year too deep, carefully analyzing the evolution of the trend Quotes to observe the strength of the market conditions; third is through, when the index stood firmly above the line years, or although the short-term or broken-year line, but soon will be able to recover the lost ground, once again, after the effective line of the breakthrough year, investors can actively participate in the appropriate position increased.
