1. Never buy a full position! Don't always think about making all the money in the market at once. Not buying a full position is like missing a good opportunity. But remember, controlling your position is the key to controlling risks. For short-term operations, it is recommended to hold 20% to 30% of your position, so that you can flexibly respond to market changes and find hot spots and leaders. For medium and long-term investment, it is recommended to maintain a position of about 2 layers, be prudent, and act after seeing the market trend. Leave a part of your position, be ready to operate at any time, be friends with the market, don't expect to get rich overnight, but move forward steadily.
2. Avoid blindly buying at the bottom! There is not only one bottom, there may be a lower bottom. Don't just buy blindly based on the low price on the candlestick chart, you need to learn technical analysis. If a downward trend has already formed, then the chances of making money are actually few, and losing money is the norm. Don't always think that you are taking advantage because your cost is lower than others, often this mentality will put you in greater risks. It is a wise choice to wait until the market trend starts to rise before operating.
3. Don't be obsessed with technology without mastering any of it! Although there are many technical indicators, you must learn to grasp the key points. The relationship between volume and price is the basis, and fundamental analysis is also very important. Don't think you know everything just because you know the basics. Indicators such as MACD and KDJ can be used as references, but it is more important to understand the logic behind them. Fundamental analysis should look at key data such as financial statements, performance growth rate, and return on net assets.
4. Learn to stop loss! Don't be afraid of "cutting losses", this is a reality that must be faced in the stock market. Don't be discouraged when you see that the stock price rises again after stopping loss, and don't give up stop loss because of this. When it falls below the 15-day and 20-day moving averages, it is a wise choice to exit decisively. Cut losses and let profits run, this is the iron rule in the stock market.
5. Overcome greed! Buying stocks is easy, but selling is the key. Don't miss the best time to sell just for a little profit. When the stock price rises from 15 yuan to 16 yuan, if the turnover rate is already high, don't be greedy. Otherwise, once it falls, you may fall into a deeper predicament.
6. Don't go against the trend! When the overall market trend is downward, don't enter the market easily. It is wise to wait for a clear trend to emerge before taking action. Don't rush to make up for your losses and go against the trend, which will only make you lose more. The stock market is as complex and changeable as human nature. You must learn to follow the general trend to be able to navigate the market with ease.
These six taboos are traps that must be avoided in stock trading. Only by constantly learning and practicing to accumulate experience and knowledge and form your own investment strategy can you make steady profits in the stock market. Stock trading is not only a way of investment but also a process of practice that allows us to constantly improve our humanity in thinking and operation.