At different stages of the market sentiment cycle, investors can adopt different risk control strategies:
- Emotional freezing point period: At this stage, market sentiment is very low, and investors should remain calm and avoid blindly following the trend. You can choose to wait with empty positions, or participate in some potential stocks with small positions.
- Bottom sideways oscillation period: At this time, market sentiment begins to gradually warm up, but there is still a certain degree of uncertainty. Investors can increase their positions appropriately, but they should pay attention to risk control and avoid chasing high and selling low. You can pay attention to some stocks with performance support and reasonable valuations.
- Irreversible upward trend stage: Market sentiment is relatively optimistic, and investors can actively participate, but be careful not to be too greedy. You can reasonably allocate funds according to your risk tolerance and avoid over-concentrated investment.
- High head oscillation period: Market sentiment begins to diverge, and investors should gradually reduce their positions and lock in profits. At the same time, pay attention to market changes and adjust investment strategies in a timely manner.
- Ebb tide main decline stage: Market sentiment is relatively pessimistic, and investors should stop losses in time to avoid further losses. You can choose to wait with empty positions, or pay attention to some stocks with strong defensiveness.