Category: Money tips Release Date: 2006-11-05
In the weak in a strong trend of the stock is very long and almost invisible, so that, once the stock to come out naturally attract a lot of attention, to follow suit disc is also the possibility of intervention. Even more exciting is that these stocks to break higher, once achieved, namely the stock hit a new high or high stage, as usual, leads to bursts of investor excitement. At this time, the memory of the bull market began to clear, and the glory of the past break-stock investors will wake up the follow-up long-suppressed desire.
However, the passion of investors tend to forget the present is in a weak year, apart from the occasional few stocks are out of the powerful features of cattle may be, the rest are mostly strong rebound in the strength of the results of its very short duration, followed by will continue to adjust back into the trend. As for the stock upward break, fake a greater probability of a breakthrough, a breakthrough is nothing more than access points, set by Tim courage before admission.
Stands to reason that being the case, the identification of false break through the stock should not be too difficult, but why chase fake break into the stock investors are still out there, someone will still produce in the stock price during the peak of rare courage, motivation to buy. The reason for investors to judge and operational errors can be summed up as follows:
First, investor psychology and stock price fluctuations tend to synchronize, so the stock rose, investor concerns will be greatly reduced, and is expected to be in a good afternoon's ways. Thus, on the strength of stocks, in particular, to achieve a breakthrough in the stock price, investors expected to be a good trend in the latter part of their wish to get some more, the risk will be considered less certain;
Second, the convergence of knowledge so that the original view of further consolidated. Investors, this understanding will be a convergence, and this convergence will get reflected in the media, investors view their recognition by other persons will be further reinforced after the feeling will deepen their understanding and operation.
Of course, reasonable operation here, in the weakest of the set of the reason so without hesitation! And are more likely to be deep-set. While the average investor, in consideration of the benefits a lot more time, risk and risk control is often neglected, so once the quilt will be helpless and can only watch the continued decline in stock prices.
In the year of the stock market, the false break is not uncommon, and many false breakout stocks have emerged with a strong plate inside, along with the co-ordination of public opinion, out of the "new idea" of the chase, the investors are generally more aggressive quilt will fall into the trap. Huadian Inner Mongolia, China Merchants Bank, this year's star stocks have out up a "breakthrough" trend, but the trend was confirmed once again kept off more than a weak break the trap of this fact.
