Hello, chasing the rise means catching up in time when the stock rises, and killing the fall means jumping out in time once it is judged that the stock's downward trend has become established. Chasing the rise is a means to make a profit, and killing the fall is a means to avoid losses or reduce losses.
In the actual process of stock trading, "chasing the rise and killing the fall" is synonymous with a speculative operation. Market analysts often warn investors: Don't chase the rise and kill the fall. Although chasing the rise and killing the fall is risky and has a certain speculative flavor, compared with chasing the fall and killing the rise, it is more proactive and has a higher degree of certainty about individual stocks. Therefore, investors should not deliberately avoid the strategy of chasing ups and killing downs in specific stock operations, but should look at it from a rational perspective. Although chasing the rise and killing the fall is a desirable operating method, certain principles and operating strategies must be followed during the operation, otherwise it can easily lead to losses if not careful.
The principle of chasing ups and killing downs is: identify the general trend and act with it. Whether you are following the trend of individual stocks or selling stocks after being bearish on the entire sector, you must consider the important factor of the general trend and avoid operating against the trend. Because if the general trend is weak, then the short-term rise of individual stocks or the entire sector will not be able to hold on, making it meaningless to follow the trend; if the market is good, then the short-term decline of individual stocks or the entire sector will not be sustainable, and you will lose money if you sell. significance.
The biggest difference between chasing the rise and selling the fall is that they are both short-term operating strategies. Chasing the rise is easy to succeed in the bull market and the rising stage, but it is more difficult to succeed in the bear market and the falling stage. ; It is easy to succeed in a bear market and in the declining stage, but in a bull market and in the rising stage of the stock market, it is very likely that the stock market will rise again just after you are out.
This information does not constitute any investment advice. Persons should not use such information as a substitute for their independent judgment or make decisions solely based on such information.