The basic operation method of band unwinding in the stock market :
Method 1: Rely on the cover to release the cover
This strategy is usually used during a bull market or at the end of a bear market . The advantage of this method is that there is no need for back-up funds and no need to worry about operations. The disadvantage is that it is too passive and cannot be controlled by itself. Risk mainly comes from stock selection and market judgment.
For example, during the bull market, the market is at a high level, and new entrants often face the situation of buying and falling today. Fear of the high level often makes everyone cut the meat and stop losses, or during the periodical adjustment of the market , a 10% to 20% decline is even more attractive. Investors rushed to flee. But the fact is that each adjustment in the bull market is just a digestion and arrangement of previous profit– making orders. As long as the upward trajectory of the bull market remains unchanged and the company is still high-quality, the stock price will inevitably hit new highs, and the solution is just around the corner.
The bear market is not yet due, the stock price is in the bottom area, lower than the actual value, the transaction is not active, the transaction is shrinking , and the disk is mainly in a sideways state . Instead of suffering losses again and again and then facing choices, it is better to hold on to high-quality stocks, wait patiently, and adapt to changes.
The key to the operation of this method is to adhere to the concept of value investment, hold it patiently, and cover the excellent performance but not the poor performance.
Method 2: Stop loss and release
This method is often used in the early stages of a bear market, especially for chasing gains, speculative buying, and sharp declines in stocks at high levels. Small and medium-sized shareholders are often reluctant to admit losses when the stock price falls, hoping that the stock price will rise again to recover the loss, but this often backfires. In fact, the stop loss solution method is applicable at this time. The idea of ​​this law is that a hero does not suffer immediate losses, and he wins if he loses less. Its advantage lies in the high efficiency of unwinding, and the disadvantage lies in the risk of shorting.
Method 3: Flattening and unpacking
This method is suitable for investors who are holding wet positions , that is, as the stock price falls, they increase their purchases, and use the idle funds on hand to amortize the low cost, waiting for the stock price to rebound. The advantage is that no matter how deep the sleeve is, the sleeve can be released if it rebounds properly with proper operation. The disadvantage is that if you fail to grasp the timing of flattening, it will magnify the risk, and the more the set will be, the deeper the risk will be.
Before using this method, it must be confirmed that the stock market has not entered the market, otherwise it is easy to sink deeper and deeper. When choosing the timing of flattening, when the stock price bottoms out or there are signs of a rebound from falling, it is necessary to cover positions on dips and reduce costs. In the process of operation, investors must first have enough funds to avoid falling into a situation of inescapable due to repeated operational mistakes; secondly, they must confirm that the valuation of the purchased stocks is reasonable or low, and there is a rebound trend in the future. The operation essentials of this method are to ensure that the bottom is involved, and the choice of the flattening machine determines success or failure.
Method 4: Band Unpacking
This method is suitable for quilt situations in various market stages, especially for volatile market conditions. The idea of ​​this method is to buy low and sell high, gradually reducing costs and reducing losses. The advantage is that the operation methods are varied, eclectic, and take the initiative to attack. The disadvantage is that it has high requirements on personal time, energy and ability, frequent operation has certain cost pressure, and improper operation is easy to cause greater losses.
Method 5: Swap shares to unpack
It is suitable for stocks without fundamental support or financial concerns, mainly selling weak stocks, buying strong stocks , and offsetting the losses of the former with the profits of newly purchased varieties. The idea of ​​this method is to pursue capital unwinding rather than stock unwinding , and to maximize profits. The advantage is that it is not bound by the original quilt stock and pursues the maximization of benefits; the disadvantage is that the risk is huge, and a mistake in stock exchange will be a loss to the wife and the army. Therefore, the stock exchange must pay attention to the quality and price of the stock.