Investing in the stock market if you know how to surf the stock market, you will make a lot of money. The stock market has a cycle consisting of four basic stages: accumulation, growth, distribution, and correction. Understanding the market, investors will know how to choose the right time to surf. But if you are a newbie and don't know yet Stock surfing what? Risks when surfing the stock market. How to choose stocks to surf. Let's learn through the experience of surfing the stock market to make a lot of money of the following "senior" investors.
What is Stock Surfing?
What is Surfing Stock Investment? Stock trading is about trading at the right time when there is a price movement. The time when the stock price or the whole market has a strong increase or decrease. This makes for a quick profit. Entry time is where an up or down wave begins and take profits when the wave stops falling or stops rising.
As we all know 60-70% of the time the stock price moves with no trend. And moves tend to be short-lived and prices move very quickly. Therefore, many investors choose when the price moves tend to quickly take profits. This is the usual job of traders.
Stock surfing can be divided into many different types of big waves and small waves. Based on the trading time frame characteristics. The waves in the time frame from 1 minute to 15 minutes are small waves. Because it happens fast and can be over in a few hours or in a day. And the big waves are waves in the 4-hour, 1-day timeframe. The time from the beginning to the end of the wave can last up to half a month or a month. Cyclical waves, or tsunamis, are huge price spikes that last for months or even years following stock cycles.
Stock trading often refers to small waves on small time frames. Those are short-term waves.
Why do most investors like to surf the stock market?
Many people choose to surf the stock market for the following reasons:
- Short-term investment time, quick capital recovery and reinvestment.
– Profits will be very high if taking profits at the top of the wave, and even higher if using leverage.
- Predict the price movement when there is news, the market.
– People prefer short-term surfing because they can catch many waves, quickly earn money. Wave frequency occurs frequently and continuously.
Avoid the risk of burying capital for too long.
There are more investment opportunities than long-term holding investors.
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Risks for inexperienced investors in stock trading
Stock trading also has its risks if inexperienced investors can lose money. Because profit always comes with risk in proportion. The higher the profit, the higher the risk. Surfing the stock market also causes many investors to burn their accounts because they do not know the following risks:
– Risks from the market: The market is constantly changing, so is the psychology of traders. No one can accurately forecast short-term price movements. Therefore, you should always have a plan for every situation when surfing the stock market. Always remember to put a stop loss (stop loss) after entering the order. If you have entered an order in the wrong direction, you must accept a stop loss immediately, do not let your account burn.
– Time risk: Stock trading requires you to spend a lot of time monitoring continuously the price movements before and after entering the order. You have to watch many stocks continuously to spot opportunities and move prices to enter right from the beginning of the wave.
– Psychological risk: Surfing the stock market has a strong impact on your trading psychology. That affects your behavior. If investors do not have enough expertise, not confident, they will easily fluctuate when the price moves against your order. Leads to the behavior of buying and selling and cutting losses continuously, eroding the account.
What is the wave of stocks that are surfing?
The line of stocks is surfing is a concept to refer to a group of stocks that have many fundamental and policy advantages over other codes. Stock lines are also seasonal. When entering the wave, stocks in the same industry will increase and decrease equally. Depending on the intrinsic strength, each individual stock will have its own growth rate.
Some wave guiding lines in recent years: Steel line 2013 (HSG leads the wave), Securities line early 2014 (HCM wave leads), Oil and gas line end 2014 (GAS leads wave), Bank 2015 (VCB leads wave), Steel 2016 (HSG waveguide). In your opinion, 2022 will be the wave guide of which industry group?
How to recognize stocks that are surfing?
How to know if a stock is in a wave to surf or not. You can rely on some of the following signs:
– Stocks that have been accumulated or distributed: A stock only moves in price after it has accumulated or distributed. The rest of the time it will mostly move sideways. While cumulative and distributed stocks are often traded in low volume. This proves that the sharks are collecting goods or selling them on a drip to avoid a strong influence on prices. After a period of consolidation, the price will move quickly with a large volume. If you catch the right time, you can immediately enter a trade according to that price trend.
– In the moving money, there will be a few advancers to lead the wave. The first stock that goes up is the leading stock. The stock that leads the wave will usually have the best price accumulation in the line.
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Effective stock surfing experience
Identify general market trends, stocks
Identifying market trends will help you surf the stock market more efficiently. Because all movements in stock prices are governed by the market. Catching the trend quickly will help you make the right decision and make a profit.
However, determining the market trend is not easy. It requires you to have a broad knowledge of financial markets, know fundamental analysis and technical analysis. Don't stop investing in learning to equip yourself with solid knowledge.
Analyze the trend that is popular at the moment
Just like identifying market trends, catching and analyzing the prevailing trends in a timely manner will help you stay ahead of the trends. Do not stop updating market news to always catch the trend.
Choose the right "leader" stock in the industry
If you're new to the market, choosing industry-leading stocks will make your investment safer. Information when a large company embarks on an investment or merger will make the stock price rise soon after. If you catch the information in time, this can help you make a lot of money effectively after every stock market.
Technical analysis
Knowing the principles of technical analysis is the key to successful stock trading. The market will move up and down according to the wave, with the knowledge and experience of participating in the market for a long time will help investors make the best decisions. Therefore, spend a lot of time studying. When the battlefield sweats, the battlefield will bleed less, remember.
Ready to cut losses
Stop loss when necessary is the principle you must remember when learning to surf the stock market. This is one of the effective ways to surf the stock market from longtime investors. Sometimes it's better to lose less than to bury your capital for a long time when the market is falling. Knowing this will help you conserve your capital efficiently and wait for a better entry opportunity.
Besides, prepare mentally well before stepping into the investment battlefield. It's a lot more intense than you might imagine. Be careful.
Accept win or lose
Investing in the stock market is like gambling, there will be losers. If you're already here to make money, accept this rule. And from there, know how to choose the right learning and training path for yourself. Learn how to overcome your fear and grow every day.
Go through the wave
To launch the javelin, you must follow the javelin, whether it's right or wrong, don't miss it midway. Before making a decision to buy or sell securities, spend a lot of time researching carefully, then trust your choice. Don't be afraid to sell quickly or buy quickly, sometimes you will miss the opportunity.
Epilogue
Above are the experiences of surfing the stock market from successful investors. Hope the above information has helped you to solve some of your concerns. If you have questions or suggestions, don't hesitate to leave a comment below. Please follow tintucbatdongsanviet to update the latest information on investment and business. Goodbye and see you in the next post.
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