ATFXWhat does it mean to switch positions and stocks? Be cautious when calling for orders and investing

When the market is good or bad, it is often necessary to adjust positions and exchange stocks. Adjusting positions and exchanging stocks is a new term specifically used in the stock market, and many friends do not know what it means to adjust positions and exchange stocks, and what specific content does it include?Let's take a look together with the editor.

What is the meaning of position adjustment and stock exchange?

Position adjustment for stock exchange refers to the timely adjustment of the position and variety of the stocks held by oneself during the adjustment of the market. In general, when the market enters the upward channel, it is necessary to increase the position of the leading stocks, or even fill the position;When the market enters a downward channel, it is necessary to lower the positions of all stocks and timely change stock varieties according to market trends to obtain higher returns.

【1】Small cap stocks are more likely to be selected and controlled by more market makers due to low restructuring costs and other reasons. This makes small cap stocks more active and often outperforms the broader market. So, small cap stocks are the preferred variety for outperforming the trend and holding stagnant stocks.

【2】Low priced stocks are generally overlooked by the market, and their investment value is often underestimated by the market. Moreover, due to their low absolute position, low priced stocks have limited potential for further decline and lower risk. If it is a low-priced stock that has fallen deeply from a high position, it has a certain upward potential because it is far from the lockdown zone. The price of high priced stocks itself implies high risk, which puts them under significant adjustment pressure. Therefore, when exchanging stocks, it is necessary to trade out high priced stocks and retain low priced ones.

【3】Retain new stocks for old ones: Due to the lack of capacity expansion, the circulation of new and secondary stocks is biased, allowing them to be controlled by the main force. Moreover, secondary new stocks that have not been listed for a long time and have not been speculatively speculated on have been held up and traded lightly. In addition, the new stock just went public last time and raised a large amount of cash, often with new profit growth points. These factors can easily trigger the hype enthusiasm of mainstream funds.

【4】Exchange strong for weak: The characteristics of weak stocks: If the market adjusts, weak stocks will fall with the market, often exceeding the market;If the market rebounds, even if weak stocks follow the market rebound, their strength will still be greater and the market will be weaker. So, once investors discover that they hold such weak stocks in their hands, whether they are trapped or making profits, they should promptly clear their positions and choose strong stocks. This can effectively ensure the utilization rate of funds.

【5】Swapping for non dominant stocks with dominant stocks: A dominant stock refers to a stock that has a main force intervening. The intervening main force, relying on strong gold, will not fluctuate in the market, continuously pushing up prices, and the stock price will show a trend of strength. Due to a lack of primary funding, many small retail investors are struggling to support the non Zhuang stocks. If they hold this stock, they can only struggle with other retail investors.

【6】Replacing old stocks with new ones: Because old stocks, regardless of whether there has been a significant increase in the past, or whether there is time and space for profit, are very likely to consider how to choose a path to escape under long-term time cost suppression. Therefore, the upward space and strength of old stocks are questionable. Xinzhuangstock market indexThe main intervention time did not exceed1Individual stocks in the year. Due to the recent intervention of new funds, their output often exceeds that of old stocks.

【7】Swap bottom volume stocks for bottom volume stocks: Swap for stocks that can rise quickly and quickly. Those who increase their volume at the bottom will still be weaker than the overall trend of the market when following the fluctuations of the market. Even if they are selected by the market makers in the future, the main force will continue to attract funds before building temporary positions. If there are already Zhuang's stocks and they are not trading at the bottom, it can only indicate that the main players have already absorbed a lot of goods and are thinking about how to distribute them. The future upward space can be imagined. So, when switching stocks, it is important to focus on bottom volume stocks as much as possible.

【8】Swap mainstream sector stocks for niche stocks: Some niche stocks fluctuate only for a few cents a day and have few transactions throughout the day. If you have these individual stocks in your hands, you should sell them early and trade them for stocks that are currently in the mainstream sector but have not gained much.

【9】Stock with potential themes to exchange for clear themes: There are often vague themes circulating in the market, and whether it is true or not is not important. As long as it can be recognized by the investing public, the stock price often performs well. But once the theme becomes clear, the hype ends. So, when switching stocks, it is important to pay attention to selecting some stocks with potentially ambiguous themes, rather than selecting stocks that have already been redeemed.