How to learn to escape during stock surges - Digital Cryptocurrency Trading Platform

After the main forces in the stock market are close to escaping,

they generally complete their final escape in two ways: one is a rapid surge upward,

followed by the stock price freely entering a downward trend; the other is a large-volume bearish break,

completing the final distribution process.

There is also a quick rise to induce more buying and then distribute,

characterized by a rapid increase in volume and a sharp rise in individual stocks,

often hitting the daily limit or continuously hitting the limit up.

An abnormally high turnover rate,

indicates that the main funds are completing their distribution during the rally.

In the late stage of the market,

but before a definitive trend change occurs,

this method is what investors should be most cautious of.

This kind of movement is very confusing,

because it indeed involves volume-driven surges,

and appears very strong,

many people will also try to persuade you to chase these stocks at this time.

Chasing the rally may offer short-term gains,

but it is definitely the riskiest move.

Many investors often overlook a fact: this volume-driven rapid rise is not at the bottom,

but occurs after the stock has already risen significantly.

Volume-driven rapid surges only occur at the bottom,

especially during breakout volume surges,

which are signals of new funds entering firmly.

This is the signal we should follow.

After a stock has surged significantly,

especially those with already doubled or more gains in a rebound,

a final volume-driven rapid rise at the end is nine times out of ten designed to attract your attention and get you to buy.

And for these,

the smartest approach is to use this rally to distribute shares along with the main forces,

rather than chasing the rise.

The closer to the end of the market,

the more investors should consider the risks.

Those who have made double or more profits,

are thinking more about how to cash out.

Learning to escape during the rally,

means learning to leave the last profits to others,

even if the final surge is dazzling.

Learning to leave the last profits to others,

is equivalent to learning to leave the final risks to others.

If you get caught in a stock trap in the end,

unless it is due to systemic risk factors,

most of the time it is because of luck and greed.

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