Five Contingency Strategies After Low Innovation

Five contingency strategies after low innovation

Summing up the seven innovation and low quotations in the past six years, we can find that although the index can drop every time the low point of the previous period falls, every time after the low innovation rate, it will soon rebound strongly, or even reverse the market. Therefore, when the stock market is low in innovation, investors need to adopt strategies to adapt to the market.

First, correctly understand creativity. New low point Quotation.

There is always a circular transformation of opportunities and risks in the stock market. The low innovation is the concentrated release of market short kinetic energy and the accumulation of more energy. In the low innovation market, although the downward trend is fierce, the downward development space of the stock market is very limited, and there is an opportunity to rebound in the future market, when market risk is gradually changing to investment opportunities.

Two, after innovation is low, not panic. Kill or fall 。

Because the stock market can not always fall, innovation low means that the market has developed to irrational stage, investors at this time blindly fall is also irrational. The fall will cause investors to lose cheap stocks and thus lose future earnings opportunities.

Three, sell to seize the opportunity.

If there is a problem in stock selection, we need to sell stocks, and we should wait for the opportunity to rebound. In fact, the stock market will rebound soon after the low innovation.

Four, do a good job Investment Preparation.

Careful selection of individual stocks should be ready to buy at any time in terms of operation, mentality and funds. Because there is no real short selling mechanism in China's stock market, all investors must buy low and sell high to make profits, and innovation low is just a low buying opportunity.

Five, be patient and wait for the real transformation of the trend.

After selecting stocks, investors should not buy them immediately, nor predict where they are at the bottom. At this point, the only thing to do is to wait patiently and wait for the full turn of the trend. As every market turn can rise hundreds of points, so giving up dozens of space at the bottom of startup will not affect investment returns, and will greatly increase investment safety.