Grasp the downward trend signals and take profits promptly

When a stock you buy continues to rise, you should focus on one of the most important questions: when to sell.

The market works together to form a t-trend. Once the trend is formed, you must follow the trend to obtain maximum profits.The market is playing games all the time, and no one knows the outcome of the game. You can only sell when there is an obvious turning signal in the trend. There is no need to worry about the decline (within 10%) in one or two trading days.Continuously observe the following signals, and cross-comparison measurement will help in analysis and judgment.

High volume decline Appears in the early stage of the falling market****Continuous heavy volume decline****It is often the main force that ships at a high level. Although some investors who were originally on the sidelines saw the opportunity for a correction and blindly jumped on the market, after all, their strength was not enough to defeat the short side.As the main force continued to flow out, the price fell below key points (MA20, MA60, price integer points, etc., MA5, MA10 cycles are too short, and should not be used as operating indicators, blindly frequent transactions, affecting costs and mentality.), blind traders also cut their flesh and left the market, and the market ended.

Main Trends Stocks that are concentrated in funds have increased by more than 30%, so it is better to close when the gains are good.Institutions generally have the determination and patience to build positions at the bottom and the patience to hold them for a long time. When the increase reaches more than 30%, it is time to take profits.Without large fund expenditures, it would be difficult for stock prices to continue to maintain high levels and upward trends.

Industry Trends Those that go out of the independent market are generally monster stocks.For normal stocks, if the rising and falling trend resonates with the industry to which it belongs, you can track the industry index including the underlying stock. If the industry index starts to continue to fall, it means that there is an industry problem. If there is no egg in the crowd, run away.

Beware of black swans For example, if the chairman molests a young daughter, the chairman is detained, a factory explodes, there are product safety hazards, or he is named by the government, etc., the decision to stay or stay should be made based on different circumstances.

Risk warning: There is no perfect trend judgment system, and every reference standard has flaws..Learning knowledge is about doing basic skills. It would be foolish to apply what you have learned as a formula.If great achievements are lacking, too much pursuit of perfection is often counterproductive.Every form is related to market sentiment, and the impact of events is time-sensitive. Grasping the relationship between price and time is more important than anything else.

Published at: Sep 7, 2019 · Modified at: Jan 14, 2026