Hello everyone @郭新道实实theory is well-known far and wide, today I will introduce one of the basic viewpoints, that is, several stages of the basic trend.
1. Bull market - a basic upward trend, usually (not necessarily) divided into three stages: the
first stage is to build positions (or accumulation), in this stage, the forward-looking investor knows that although the market is depressed now, the situation is about to turn , and thus at this point bought up those sellers who were less than courageous and unlucky, and gradually raised their bids to stimulate selling*, the financial statements were still in bad shape--always in fact always at this stage. At its most sluggish, the public was completely out of touch with the state of the stock market, and market activity stagnated but began to rebound a little.
The second stage is a round of steady rise. The transaction volume continues to increase with the company's business prosperity, and the company's profitability begins to attract attention. It is also during this stage that skilled traders tend to make the most gains.
Finally, with the public flocking to the peak of the market, the third stage comes, all the information is optimistic, the price rises amazingly and constantly creates a "new page", and new stocks are listed in large numbers. At this time, one of your friends may be eager to try and make a judgment, "Look, I know the market is going to rise, let's see which one is suitable to buy?"-When it ignores the fact that the rising trend may have lasted for two years, it has Long enough, the time has come to ask which stocks to sell. During the last period of this period, the volume of trading increased surprisingly, and "short selling" also appeared frequently; junk stocks were also involved in trading (i.e. low However, more and more high-quality stocks refused to follow at this time.
2. Bear market - a basic downward trend, usually (not necessarily) also characterized by three stages: the
first stage is out of positions or dispersion (the actual start is far from the late stage of the previous round of bull market), and in the later stage of this stage, there is a vision Some investors feel that the profit of the transaction has reached an abnormal height, so they sell their holdings in the rally. Although the rally is fading, trading volume remains high and the public remains active. However, due to the gradual disappearance of expected profits, the market began to show weakness.
The second stage we call the panic stage. When the number of buyers decreases and the sellers become more impatient, the price decline accelerates in vain. When the trading volume reaches the highest value, the price almost falls to the lowest point in a straight line. Panic phases are often a far cry from prevailing market conditions. After this stage, there may be a rather long secondary correction or a finishing movement, and then the third stage begins.
Investors who had survived the Great Panic now either sold out of their holdings because they lacked confidence, or bought because they were trading at a lower price than they had been in previous months. Business information has started to deteriorate, and as Phase 3 progresses, the decline has not been rapid, but continued, as some investors have to raise cash for other needs and increasingly sell their holdings. The junk stocks may lose their previous bull market advances in the first two phases, and the better stocks fall a little slower because their holders hold on to the last, resulting in the last phase of the bear market. , Such stocks often become the protagonists. A bear market ends when the bad news is confirmed, and the market is expected to continue to be bearish, often before all the bad news "comes out." If you don't understand anything, follow me and communicate with me.
All the above are personal opinions and are for reference only. According to this operation, the profit and loss are at your own risk, investment is risky, and you must be cautious when entering the market.
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