Steps and Principles for Selling Stocks, Techniques for Selling Stocks
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Stocks purchased on the same day can only be sold on the next trading day. The sell interface will not display the quantity available for sale. This is the so-called T+1 rule.
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Stocks can only be sold on normal business days. For example, if the exchange is closed due to holidays or weekends, trading is not possible during that period.
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A-shares have a daily price limit of 10%. Therefore, the highest sell price that can be set is a 10% increase from the previous day's closing price. Any price exceeding this is an invalid order. The lowest sell price is the跌停板 (limit-down) price, and stocks cannot be sold during a trading halt. If the stock is suspended, it cannot be sold under any circumstances.
Principles for Selling Stocks:
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Market Principle: During a market decline, aim to short or hold a light position. During consolidation, avoid greed—consider closing positions if profits are below 10%. In a rising market, hold the strongest stocks.
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Sector Principle: When the market rises, individual stocks often follow sector trends. Identify the dominant sector of the period and chase its leading stocks. Remember, capital tends to take profits—there are no perpetual hotspots. Seek new trends and intervene early.
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Value Principle: Choose stocks expected to rise in value over the next two years (or at least one year). Remember the law of value: price fluctuates around value, similar to the Wave Theory and Gann Theory, which also follow natural patterns.
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Capital Flow Principle: When capital flows into a stock, be cautious of profit-taking trends. Stock prices fluctuate upward.
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Capital Management: Cash is always the safest. Regularly clear positions to maintain liquidity, wait for opportunities, and re-enter the market at the right time.
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Resonance Principle: The best stocks exhibit upward trends in value, price, and short-, medium-, and long-term technicals. Flawless fundamentals and technicals make the ideal stock.
Techniques for Selling Stocks:
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Set Stop-Loss Points: Major losses occur due to a lack of stop-loss points. Once set, enforce them strictly—especially if newly bought positions are trapped. Sell immediately if issues arise.
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Fear Volume, Not Price Drops: Some stocks fall inexplicably, which isn’t alarming. What’s dangerous is sudden spikes in trading volume. Stocks heavily held by institutions should never see unusually high volume—if they do, it likely signals a主力 (main force) exit. Always approach abnormal volume with extreme caution.
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Reject Medium Bearish Candles: Whether for the broader market or individual stocks, if a widely recognized strong support level is breached with a medium bearish candle forming, act cautiously. Always consider selling when encountering such candles.