To make money in stock trading, you must operate in the opposite direction. A person with over 20 years of stock experience will tell you how to operate in the opposite direction.
1. Operate with one stock repeatedly; for example, if you have 10,000 shares, keep 5,000 as a base. Use the other 5,000 shares for trading back and forth to lower costs plus dividends.
2. When the market is in panic selling, do not follow the trend and sell. Calmly analyze the fundamentals; if the company is fine, consider increasing your position.
3. If a stock is continuously hitting the daily limit, do not rush to buy at a high price. Wait for a pullback and then see if it meets your buying criteria.
4. Observe the overall market trend; when the market has been falling for several days and most people are desperate, look for quality stocks to test buy.
5. Pay attention to popular industries; when the popularity of an industry is extremely high and everyone is optimistic, consider avoiding it and instead look for under-the-radar potential stocks.
6. For stocks that are generally recommended by institutions, do not blindly follow. Research the interests and motivations behind the recommending institutions.
7. If a stock has been stagnant with low trading volume for a long time and most people overlook it, research its value; there may be opportunities.
8. When a listed company releases negative news, if it only has a short-term impact, you may consider building a position in the opposite direction after a significant drop in stock price.
9. When everyone around you is discussing a certain bull stock and market sentiment is extremely exuberant, consider gradually reducing your position.
