To cover short positions after being locked in a passive response strategies, it is not a good way to release, but in certain specific circumstances it is the most suitable method. The stock market is not the best way, only the most suitable method. As long as the use of well-managed, it will come weapon; if the application may not be law, it will also become a hotbed of its own. Thus, in specific application of skills to cover short positions when we pay attention to the following points:
A bear market can not cover the initial stage. This is the reason why people who understand stocks, but some investors Callable Bull / Bear Contracts can not be distinguished from a turning point in how to do? There is a very simple approach: stock prices do not fall to its determination not to cover short positions. If the stock price than buying the lowest-five percent do not have to cover short positions, because any time intraday shocks may deadlock. If the current price than buying the lowest-20% ~ 30% or more, and even some tender shares were off, it could be considered to cover short positions, having a further decline in space has been relatively limited.
Second, the market has not stabilized do not scramble to cover short positions. Market in a down-channel or a rebound when they can not relay to cover short positions, because when the index fell further down the vast majority of stocks will decline with only a handful of strong stock market trends can be exceptions. The best time to cover short positions in the index at a relatively low level, or just when upward reversal. At this time there is huge potential for increases, decreases in the smallest possible, to cover short positions is safer.
Third, do not fill vulnerable stocks. Especially those who market it does not rise up, bigfollowed it down without. Because the objective is to cover short positions with shares later to cover positions ahead of a profit to make up for the loss of Mantle shares, since this need not limit themselves to fill the original quilt species. What varieties do not cover up the key, the key is to cover positions to get the greatest variety of profit, we should focus on this is taken into account. Therefore, to cover short positions to fill up on strong stocks, stocks can not make up for the disadvantaged.
Fourth, the early surge had not completed the super-black. History has many leading leader, issued a brief shining brightly, the then entered a long night of darkness. Such as: Sichuan Changhong, Shenzhen Development, China Jialing, Qingdao Haier, Jinan Qingqi and so on, they fell long after the fall can often deep deep down, after the bottom there is a deeper bottom. Smoothing investors such stocks tend to be more set up, and the deeper the more sets will eventually be caught in a quagmire.
V. grasp the opportunity to cover short positions to a successful. Subparagraph should not be covered, step by step to cover short positions. First of all, ordinary investors are limited, can not stand on many occasions by the smoothing operation. Secondly, to cover short positions on the previous error to make up for buying behavior, which in itself should not once again become the second error of the transaction. The so-called margin call level is for the buying behavior so imprudent defense several times to cover short positions, the more the result of buying more sets will be able to extricate themselves into their position.
Original article reprint please specify: Reprinted from
http://chinasfinancial.blogspot.com
A bear market can not cover the initial stage. This is the reason why people who understand stocks, but some investors Callable Bull / Bear Contracts can not be distinguished from a turning point in how to do? There is a very simple approach: stock prices do not fall to its determination not to cover short positions. If the stock price than buying the lowest-five percent do not have to cover short positions, because any time intraday shocks may deadlock. If the current price than buying the lowest-20% ~ 30% or more, and even some tender shares were off, it could be considered to cover short positions, having a further decline in space has been relatively limited.
Second, the market has not stabilized do not scramble to cover short positions. Market in a down-channel or a rebound when they can not relay to cover short positions, because when the index fell further down the vast majority of stocks will decline with only a handful of strong stock market trends can be exceptions. The best time to cover short positions in the index at a relatively low level, or just when upward reversal. At this time there is huge potential for increases, decreases in the smallest possible, to cover short positions is safer.
Third, do not fill vulnerable stocks. Especially those who market it does not rise up, bigfollowed it down without. Because the objective is to cover short positions with shares later to cover positions ahead of a profit to make up for the loss of Mantle shares, since this need not limit themselves to fill the original quilt species. What varieties do not cover up the key, the key is to cover positions to get the greatest variety of profit, we should focus on this is taken into account. Therefore, to cover short positions to fill up on strong stocks, stocks can not make up for the disadvantaged.
Fourth, the early surge had not completed the super-black. History has many leading leader, issued a brief shining brightly, the then entered a long night of darkness. Such as: Sichuan Changhong, Shenzhen Development, China Jialing, Qingdao Haier, Jinan Qingqi and so on, they fell long after the fall can often deep deep down, after the bottom there is a deeper bottom. Smoothing investors such stocks tend to be more set up, and the deeper the more sets will eventually be caught in a quagmire.
V. grasp the opportunity to cover short positions to a successful. Subparagraph should not be covered, step by step to cover short positions. First of all, ordinary investors are limited, can not stand on many occasions by the smoothing operation. Secondly, to cover short positions on the previous error to make up for buying behavior, which in itself should not once again become the second error of the transaction. The so-called margin call level is for the buying behavior so imprudent defense several times to cover short positions, the more the result of buying more sets will be able to extricate themselves into their position.
Original article reprint please specify: Reprinted from
http://chinasfinancial.blogspot.com
Posts
No comments:
Post a Comment