China stock market: How important is’ volume ‘?Read easily know business, retail investors must understand!


The best investors in the stock market know how to “stop winning” after taking profits. Even if they predict the top of the stock, they will not keep the stock to the top.Ordinary investors often look at the trend of the market, select the right stock, the high price also see high, greed will arise spontaneously.Which know often things do not work out, extreme happiness begets sorrow, has not sold, the stock price fell quickly.Strong stocks must be the top gainers, especially the top gainers.If the rise is high, it is a strong signal that the stock is strong and pushing up the price.The intention of the main force is nothing more than to enter the rising stage after the stock price to complete the goal of doing;Or in the process of pulling high constantly collect chips, in order to achieve the purpose of building a warehouse.A lot of people come into the stock market is holding a great dream to come into the stock market to make a lot of money, the eyes only make money, make money, lead to hate in the face of loss;In order to make money always like to chase after rise kill fall, state of mind is not stable, try one’s luck to buy and sell stocks, go looking for the stock market god to help oneself fry stocks and so on;I ended up losing more than half of my money.It is not easy to make some money in the stock market. As long as you can not hold the money for a minute, you are afraid of falling back, so you sell it as long as you earn a little.And the same loss is, a little afraid to continue to kill, is also to sell;Those who make money also sell those who lose money also sell, anyhow formed the habit of this kind of operation hand itch namely and thinking, come down a year imperceptibly principal lost many.In the world of financial speculation, loss is like an invisible ghost, shadowing every trader. For the two results of trading, profit and loss, profit always makes people happy;But the problem of how to deal with losses properly often determines whether a trader ends up making or losing money.Why is volume so important?We should analyze the public’s psychology and trading willingness and strength of this ticket according to the change of trading volume and price, and find the direction of the least resistance of the stock price, so as to determine whether we should enter the market or exit the market.The high and low prices are generally marked by a large turnover rate, because it is possible to complete the distribution and collection of chips.When a ticket all the way shrinkage Yin drop, one day, it suddenly increased volume, what does this show?In comparison, that before Yin fell, no one to buy, now the volume, is the influx of buying.Why there are quite a lot of tickets, in the high, when the rise, do not lend, but continue to rise?Because the main force has a large number of chips, retail hands do not have many chips, up, no one to buy, so you can shrink and continue to rise, the main force want to pull how to pull.You have to understand, put quantity, is false, the main force can be put out on the reverse, shrinkage, the main force is no way to make, people always complain about K line and volume cheat line, it is because they can not identify what is true, what is false.What is volume?Volume refers to clinch a deal number of hands, clinch a deal amount, turnover rate, the volume in market comments generally refers to clinch a deal amount.Transaction amount and turnover rate are the main concerns of volume analysis.Trading volume stock selection principle: 1, the position of the trading volume determines the trend of stock prices, long-term consolidation after the emergence of a large number of continuous stock prices and a small rise in the stock can be bold intervention, not shy away.2, there is a large amount of high price area and the stock price changes little do not chase in.3, the choice of dark horse one of the trick is to change according to volume, can rise the stock must have a big bottom power, otherwise will not rise, the greater the bottom power of the stock, the stronger the strength of the rise.The volume must comply with the big criteria: 1, in most cases, the equivalent of the price is no longer falling, once the volume gradually enlarged, this is a good thing.2, after the volume atrophy, the new low no longer appears for two consecutive days, the volume of the bottom has been confirmed, can consider intervention.3, any in and out, are to the market as the observation point, the market is not good, do not do, not to be confused by the inverse rising stocks.4. After the shrinkage of trading volume, the longer the time of “price stability and volume contraction”, the stronger the strength of the rise in the future, and the greater the extent of the rebound.Look for dark horse in shrinkage 1, shrinkage rises after certain stock appears apparent quantity at the bottom, begin to go up in concussion in a rising channel, move to higher area as share price, turnover shrinks gradually instead.The shrinkage of these stocks, the banker that reflected these stocks is sucked through in bottom goods and wash dish, had gathered chip in his hand in great quantities, so share price goes up more, turnover is met smaller.Encounter this kind of stock, can be in its rise in the channel meet low absorb, can have bigger earnings.Volume rises after the contraction callback, after volume rises again, its rise again because the chips are concentrated in the hands of the main force, so the contraction rises.2, shrinkage horizontal shrinkage horizontal is characterized by the stock after a round of rising, in the high began to horizontal, K line small Yin, small Yang staggered, volume and its at the bottom of the substantial shrinkage, long-term average continued to move and share price gradually close, at the same time the market on the stock hearsay is very few, not the least attention;The makers of such stocks usually hold large positions and have no chance to ship at all, so they are waiting for the right moment to launch a spectacular main wave.Many investors often do not seriously study and summarize their own investment concepts and operating methods, but can not digest and absorb the knowledge learned, resulting in learning useless;Can not find suitable for their own investment methods, can not grasp the focus of learning, often be tired of learning, one of its performance is overambitious.These investors often did not understand the basic stock market knowledge, to study those deep technical analysis theory, so that half-cooked, learn and do not change, use a little knowledge, inflexible hard cover, the result suffered failure.Many shareholders buy and sell stocks to a large extent by the influence of the people around, see what others buy their own stocks to buy, without their own ideas.Always buy with others is not only easy to lose money, but also can not learn practical experience. Moreover, stock investment has a strong professional, real experts are very few, investors did not carry out rational analysis and judgment on the stock, blindly follow the crowd, the result is certainly continuous losses.Many retail investors dislike short positions and want to buy shares as long as they have money in their accounts, no matter what the market is doing.

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