5th, 10th, and 20th moving average combination low suction operation skills

2019/12/31 08:57:51 Source: Yimeng2019 / 12/31 08:57:51

How to sell high and sell low has always been a particularly distressing issue for short-term investors. When you buy, you fall, and when you sell, it rises. It is embarrassing us all the time. Today we will share with you 5 MA, 10 MA, 20 MA Combination of low suction operation skills.

Note: The so-called "low-buy buy-sell" must be based on "strong individual stocks."

The 5 moving average is called the attack moving average, the 10 moving average is called the trading moving average, and the 20 moving average is called the life moving average. In actual operation, to judge the strength of the bulls, the strength of the adjustment can be judged according to the position of the short-term moving average family.

1. If it does not fall below the 5 moving average, it means that many parties are very strong and are still under attack. We must “buy low and buy low”.

2. It fell to the 10 moving average, indicating that many parties blocked the short side at the 10 moving average. At this time, the short-term funding participation will be relatively reduced, but the multiple parties are still in control. At this time, we wait for the stock price to rise above the 5 moving average again. fall".

3. If it falls below the 20 moving average, it means that the short side's counterattack is also very strong, and the short-term trend has been downward. It cannot be called "low-sell buy-sell" but "short-term bottom."

Operation points:

Operate according to the strength of the callback after moving average longs

1. Individual stocks form an upward trend, and the short-term moving average bulls can judge the upward trend.

2. Call back the position of the moving average to determine the strength. The pullback of the bulls in the moving average can stop buying at the 5 moving average and “buy low”, and stop at the 10 moving average and buy low after the 5 moving average.

3. After the 20 moving average has stopped falling, first observe the direction of the stock price and make a plan. If the 20 moving average can intervene upwards, but it is not a short-term strong performance, so it is not a "low-buy buy-sell" but a "short-term bottom-sweep" method.


The secret to getting involved after touching the moving average is the number of "touching the moving average", preferably the first touch. If there is a touch on the left ** moving average 3 or more, you need to be cautious and flexible. For example: after touching the 5 moving average for the first time, but the rebound did not reach a new high, and after the second touching the 5 moving average, continued to intervene. There is still no record high, or there is a strong increase. At this time, it is necessary to be cautious when touching the 5 moving average for the third time, and do not blindly intervene.

How to monetize band operations

1. Follow the trend

Swing operation is about buying at the bottom and selling at the top, trying to grasp the main rising wave of the rising market.

Holding shares in a bull market and short positions in a bear market. The main wave of rising prices will not end easily, nor will the main wave of falling prices stop easily.

Buy stocks when the market goes out of the descending channel and turns its head up; sell stocks when the market breaks its ascending channel and turns its head down. Both the bottom and the top refer to an area. The band operator only needs to focus on buying points at a low position and selling points at a high position. Long lines can be used to catch big fish. Properly letting go can get more profits. The closer you are to the market, the more you want to buy at the lowest point and sell at the highest point, the more you get lost in short-term and disorderly fluctuations, and you end up losing money.

Only do stocks in the rising channel. Once entering the falling channel, they leave the market unconditionally. A-shares are a market that can only go long, and only rising investors can make a profit, so it is not worth our participation when it is in a clear decline channel. The market is like a tide. We can't control the high and low tides. We need to be a follower.

2.A clear point of sale

Swing operators need a relatively fixed investment plan or trading system. This plan includes technical analysis basis, clear buying and selling strategies, in simple terms, what to buy (sell), where to buy (sell), how much to buy (sell).

As the saying goes, "who will buy is an apprentice, and he will sell is a master." Many investors only have a point to buy but do not have a clear selling point. They only have one belief in their hearts, that is, they cannot make money. Under this belief, there will be two tendencies. One is to make more money and want to make more money. In the end, the selling point becomes more and more blurred. Once it enters the falling market, it always wants to return to the original high level and then sell. Waiting again and again, profits continue to shrink; another tendency is that when you lose money, you always want to wait for the cost and then sell, but the market does not know what your buying price is, once the market forms a downward trend, it will not end easily . Therefore, the band operator must have a clear set of trading plans.

Swing operators should minimize or even not operate in a bear market. Entering a short market is an unconditional sell signal.

3.Control positions

Controlling positions is the most direct and effective way to control risk. The Great Turtle Trading Law states that "there are old traders and fearless traders, but there are no fearless old traders." However, some novices often have to pay expensive tuition fees in the first round of bull-bear conversion because of insufficient awareness of risks.

Position control is to solve the problem of how much to buy (sell) under what conditions.

The idea of not controlling positions is a sign of immaturity, because in their ideas they did not expect that they would make mistakes and make mistakes. Heavy positions and full positions are one of the most important reasons for losses. According to the "Kelly formula", we recommend that investors use 30% to 40% of the total funds to open a position each time.

4.Timely stop loss

"Truncate losses and let profits run" is the golden rule of law that has been circulating on Wall Street for hundreds of years. Many well-known investment masters advocate the use of stop loss. For example, the most legendary investment master Gann said: "When all the analysis fails, I use the oldest protection measure-stop loss orders." Most of the investors believe that based on prediction, he still emphasizes the importance of stop loss. It can be seen that even a master must buy insurance for possible mistakes.

Stop loss refers to the protective measures when an investor makes a loss when the stock price does not move in the expected direction after the investor buys the stock. The method of setting the stop loss can be divided into fixed amount stop loss, fixed percentage stop loss, time stop loss, psychological stop loss and so on. Stop loss is like a car's brake. Although it can't increase speed, it can guarantee safety. Remember, safety is more important than speed. Trading without stops is as dangerous as a car without brakes.

Swing operators should accept the notion that "stop loss is not always correct, but it is wrong to not stop loss." Sometimes the price may rise back after a stop loss, but if there are 5 out of 10 stop losses, Right can reduce a lot of losses. Accept the correct loss, accept the loss in the system, so that you can enjoy the profit of running.

"Always use stop loss", "Never let profit turn into loss", these are the advice of investment masters to us. Investors should keep in mind the following couplet: "Uplink, stop loss is always right, wrong and right . For the second league, death carry is always wrong, right or wrong. Horizontal approval, stop loss is unconditional. "

5.Patience and objectivity

For band operation, patience and objectivity are essential qualities. Its performance is that in a bear market, it can patiently wait for the formation of the bottom; after the bottom is formed, it can objectively judge the bottom and execute it; after buying, it can hold the shares patiently without being shaken out; objectively judge the exit point and execute it at the top.

The market's band price is objective, and if the operator performs the operation based on subjective assumptions, guessing the bottom test will often cause heavy losses. A good band operator is an operator who does not have a point of view. There is only a countermeasure without prediction. "Is it going to rise or fall tomorrow?" This kind of question is not something the band operator should worry about. The band operator should be concerned about "what to do if it goes up, what to do if it goes down."

World-renowned stock master Jesse Livermore once said: "It's never my thinking to make a lot of money for me, but my work." It can be seen that the importance of patience in operation. "Patience is a virtue", and this phrase is appropriate for investment. Livermore also said, "Remember this: When you do nothing, speculators who feel they must buy and sell every day are laying the groundwork for your next speculation, and you will start from theirs. Finding profit opportunities in error. "

6. Make only high-quality stocks

Band operation should choose high-quality stocks to do. First of all, the fundamentals of stocks are better, such as the company's profitability, financial status, company prospects, industry prospects, non-restricted shares, sector leaders, and so on. Secondly, there are technical standards, such as good liquidity, smooth fluctuations, good volume and price coordination, moderate plate size, moderate turnover rate, and so on.

The importance of stock selection in the swing operation is not too great. Investors only need to choose familiar stocks and choose high-quality stocks that have performed more actively in the previous rounds. Establish a stock pool of five or so stocks, and choose three of them to operate more appropriately. Investors are advised to choose a sector that has good growth and expects to rise. With fundamentals as the background and technical stock selection, generally there will not be much deviation.

In actual combat, investors should reduce the practice of digging dark horses and choosing unpopular stocks, because in a market, good stocks are manifested by themselves, rather than being dug out. Swing operation advocates to follow the trend, and decisive intervention in the early stage of the stock showing strong momentum can be. As we have mentioned before, there will be at least one round of market every year. As long as we can grasp this major rising market, we will have considerable profits in the long run.

We have repeatedly emphasized that "time selection is more important than stock selection". When the "time selection" is good, coupled with high-quality stocks or concept stocks, basic returns can be guaranteed, such as from July 2010 to July 2012 Baotou Steel's rare earth (600111), from December 2012 to February 2014 GEM stocks, they performed well as market hotspots, the market was smooth, and they came out of several waves of obvious market. Many experienced investment veterans just make several familiar stocks over and over again, because they have learned the stock properties of these stocks, which is much more reliable than making unfamiliar demonic stocks, or "wild horse stocks"!

7.Unification of knowledge and action

The stock market often says that "buying depends on confidence, holding depends on patience, and selling depends on determination." For investors, execution is more important than judgment.

Experienced investors who have been fighting in the stock market for a period of time will know the phrase, "Fourth-class masters rely on technology, Third-class masters rely on fund management, Second-class masters rely on ideas, First-class masters rely on psychology, Super-masters rely on quality".

First-class experts rely on psychology, which is often said. When the buying and selling technology, fund management and investment concepts are relatively mature, psychological factors become the key to determining success. Super masters are master-level, and our goal is first-rate masters. Solving the three major problems of technology, fund management and psychology, and achieving unity of knowledge and action is a huge success. By then, profitability is also a natural thing.

The execution problem seems simple. Some investors will say, it's just a simple click.

However, in actual operation, when your heavy position is quilted at a high level, it is very stressful to make a determination to stop the loss. Execution under heavy pressure is the key. Also, when the bear market ends to the beginning of the bull market, often accompanied by the announcement of major good news, the market will have a strong rise. At this time, the market is out of the bottom, and this is also the time when investors are most afraid of chasing after the baptism When it goes up. The operation at this time is actually fighting human greed and fear.

Buffett, the investment guru, said, "Fear when others are greedy, and greedy when others are afraid." only the guy drinking water knows it's cold or hot. If it can be done, it will not be far from success!

The secret of success for investment masters is consistent execution, repeating the right and simple things, and investing is as simple as that.

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