The so-called “forced short” literally means to force short positions. In the stock market, because China can not be short at present, the meaning of “forced short” is relatively simple, that is, to repeatedly rise unilaterally, not to give those who do not buy stocks but wait for callbacks to buy again, the characteristics of this market is that once you sell stocks, it is very difficult to buy again. Come in, because you always want to wait for a low point in the callback, but this callback always comes to an end.
1. Market characteristics of “short-selling” Market
In the “forced short” market, the more moderately the volume enlarges, the more momentum for sustained growth. On the contrary, if there is a huge amount in the short term, it often means that the market will peak.
In addition, the more blowout rises, the more cautious they are. In bear markets, blowouts always trade for deeper declines. At present, the market maintains a certain rate, step by step on the rise, its stamina is more sufficient. Because only in the stable high market, the main capital can fully build warehouses, which is more conducive to the further development of the market.
2. Short-selling Stock Selection Strategy
(1) Stock selection is dominated by hot stocks and stop-trading stocks.
Most of the stocks in a certain sector are trading up or down, which indicates that the main capital is concentrated in the sector. Therefore, the selection of stocks from the plate often leads to a larger increase than the market. It is advisable to pay attention to the individual stocks whose price is raised first from the low level. At this time, it is often a signal for the stock to start or even accelerate its rise. It can be followed up in time. Investors can buy after the second day of the stock’s rise and stop.
(2) Seize the opportunity and intervene early.
In weak markets, risk prevention should be given priority, while in strong markets, seizing opportunities should be given priority. In weak markets, bankers are accustomed to pulling up in the tail market in order to reduce the difficulty of pulling up, so they should push back the time of buying stocks as far as possible. They usually buy stocks after 2:30 p.m., and the risk of buying stocks at the last minute is only one minute. In strong markets, bankers always pull the stock price up to the stop early so as not to follow the trend. Hesitation has lost the chance. Buying one minute earlier is often cheaper than buying one minute later.
(3) It is advisable to buy or not to sell back.
In the “short” market, investors are generally worried that hot stocks have risen significantly, and hope to intervene in the future. In fact, if a certain stock keeps a high turnover rate, it means that the market cost rises faster and the fire of people gathering firewood is high. Even if it calls back, it usually takes the form of strong adjustment to digest the profit plate, that is, the adjustment is only completed in the plate, the chance of substantial adjustment is small, and excessive caution can only watch the opportunity slip away. In a short market, the reversal does not mean that the stock has turned downward, usually in the process of a short period of consolidation, at this time, the reversal should be bought rather than sold.
3. Notices for “Forcing Out” Market
(1) Change of thinking. “Short-run” market mostly occurs at the end of the bear market, when most investors have inertia thinking, found that when the market rises, they dare not chase, or throw it away. To cope with the “forced short” market, first of all, we should change the bear market thinking. On the one hand, we should appropriately catch up with the increase in operation, on the other hand, we should dare to “cover up” stocks. When the market continues to rise, investors should not use the bear market’s “sell-as-you-go” approach, but should buy more until the “short” market has come to an end and began to adjust to sell back.
(2) Stock selection is important. In the “short-selling” market, the basic aspects of individual stocks are no longer the most important factor. Plate effect, capital effect and theme effect are the key factors. We should choose strong stocks and leading stocks with obvious upward trend. In the early days of the “short” market, most stocks will rise in turn, but with the further deepening of the market, strong stocks will gradually emerge.
(3) Selling should wait for “overtaking”. The best time to sell a “short” market is when there is a phenomenon of “more empty” in the market. In the strong upward trend of the “short” market, the investors who first boldly followed up gained fast and lucrative profits. This profit-making effect will destroy the confidence of other bears to the greatest extent, so that those investors who are used to short do not dare to look short, so they have “overturned”. At the same time, it also makes some cautious market participants gradually join the multi-party camp, so that the investment perspective in the market tends to be unified. However, when the vast majority of bears have “overturned”, the market is the easiest to form a phased head, becoming the best time to sell.
For the “forced short” market sectors and individual stocks, good at speculating short-term investment experts, to follow up quickly and timely, in practice to make accurate judgments, decisive operation. It is not easy to achieve these two points. It requires investors to prepare and study carefully for a long time in advance. Specific preparatory work mainly includes the following points.
1, judge the general trend.
The overall trend of the market must be good, and the overall market should keep rising steadily.
2. Determination of candidate plates
Choose the plate that may form a hot spot in the future market. The selected plate capacity should not be too large, the continuity of hot spots should not be too short, the theme of the plate should have imagination space, and the leading stocks of the plate should have the ability to stimulate market popularity and drive the market.
3. Select stocks
Stock selection should not be more refined, more not suitable for analysis and rapid response of the attack.
4 plate setting
The selected blocks and stocks are set in the customized section of the analysis software, which is convenient for future analysis and judgment.
5. Close follow-up observation
Investors may not choose all the sectors and individual stocks to become hot spots, nor can they immediately start short-selling market. Investors need to follow up for a long time.