Specific operation mode: buy financial products when the prices of financial markets (stocks, futures, foreign exchange, etc.) rise. ) rise, with a view to rising more, and then sell it at a higher price for profit. Chasing up should also have a strategy. First of all, according to the historical market (it is best to pay attention to the index of capital flow or the index of main positions), select stocks that have not risen sharply and are relatively low in price. When the capital of institutions and large households flows in and the main positions rise steadily, we can catch a downwind boat. Seeing that the stock price has risen sharply, blindly entering the market is easy to get stuck in a high position; Similarly, it is also a blind move without strategy to rush to sell when the stock price plummets.
Operating such stocks with high popularity and activity: first, it can avoid idle funds and pay high opportunity costs because of buying unpopular stocks; Second, you can make a substantial profit in a short time. However, many investors equate this kind of stock selection with operation strategy and chasing up and down, which leads to repeated buying and heavy losses.
The reason why a stock fell from a high level is that everyone is no longer optimistic about the market outlook, and the opinions on the continued rise of the stock price in the later period are no longer unified, and the number of short sellers is gradually increasing. However, only institutions and large-scale funds can really have a huge impact on the stock price, but most investors know nothing about it. When the main funds pulled the boat, retail investors continued to take over, but when the stock price began to fall, they were still blindly expecting the illusory profits in the later period. The high-level take-over is then quilted, and if you don't cut the meat, you may get stuck.