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What does it mean to run out of money and how to judge it?

2022-01-17
4243
  Investors will see the concept of running out of bad money in the life of reading relevant materials, which may be difficult for newbies to understand. This article will give you a more detailed introduction.
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  What does it mean to run out of money?
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  It is similar to the principle that extremes turn against things in life. It refers to the phenomenon that in the stock and foreign exCM Trade, foreign exchange and stock prices fall due to the influence of various unfavorable news. This trend continues for a period of time and falls to a certain level. At the same time, the power of the short side begins to weaken, and investors must no longer be affected by these negative factors, and the power of the long side begins to increase, causing the stock price to rebound and rise in a positive direction.
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  1. You can refer to the 30-day moving average of individual stocks for rebound operations. It is a bottom line of support when the stock price rises, and it is a resistance line when a stock rebounds after a decline. If a stock stabilizes after a downward adjustment, and when it rebounds upwards and hits the 30-day moving average, there is a large volume of trading volume, which supports the stock price to continue to rise, then investors can consider opening a position.
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  2. Investors can buy according to the golden fork of kdj. When the stock price falls after a long-term bearish fall, the kdj indicator is below the zero axis, and there are many golden forks, then investors can consider an appropriate amount of buying.
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  How to judge whether the profit is exhausted?
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  First of all, you can refer to the 30-day moving average of individual stocks for rebound operations. The 30-day moving average of individual stocks is more important. When the stock price rises, it is a bottom line of support, and it is a resistance line when a stock rebounds after falling. If a stock stabilizes after a downward adjustment, there is obvious pressure to hit the 30-day moving average when it rebounds upward, and the trading volume does not increase when it hits the 30-day moving average. Strong resistance), then investors can lose weight in a timely manner. On the contrary, if a stock is backed by a large volume on the upside of the 30-day moving average and the stock price hits the 30-day moving average, then it is possible to hold a stock.
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  Secondly, the rebound operation for some stocks should be a quick fix. These stocks are the kind of stocks that have accumulated huge gains. Some individual stocks do have a big drop in a short period of time, and some investors who hold stocks after the rebound believe that there is little risk if they do not sell immediately. This view is biased. We must look at a single stock as a whole, and we must not only look at the performance of a certain period of time. Some stocks have rebounded after the cumulative increase has fallen sharply, and there are risks if they are not thrown out in time.
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  Once again, it is also necessary to learn skills for some quality individual stock investors to conduct medium and long-term operations after their downgrades. If you intervene when these stocks are bottoming out after the downward adjustment, you can reduce positions when the trading volume continues to increase and the momentum slows down after the stocks rebound and cross the 30-day moving average of the individual stocks, and the stock price stagnates. Intervene at the time of support, sell high and buy low in the true sense, and then carry out medium and long-term holdings.
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  Through the explanation of this article, you should know what it means to be profitable! Any terminology or concept in the investment industry is worth researching by investors, because these theories can guide practice. Only how to judge the profit, you can refer to the aspects mentioned above.

The above information is provided by special analysts and is for reference only. CM Trade does not guarantee the accuracy, timeliness and completeness of the information content, so you should not place too much reliance on the information provided. CM Trade is not a company that provides financial advice, and only provides services of the nature of execution of orders. Readers are advised to seek relevant investment advice on their own. Please see our full disclaimer.

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