What are the coping strategies for the stock price crash?

What are the coping strategies for the stock price crash?

Stock market crash refers to the phenomenon that investors are afraid to sell because of bad news, which leads to the rapid decline of stock prices in a very short time. (The following is Bian Xiao's information about how to deal with the stock price crash. I hope you like it. )

The stock crash is sudden and short-term, and is usually caused by unexpected information. Once this happens suddenly in the market, it is difficult for investors to react and have no time to buy and sell their own stocks, so it is difficult to close their positions. For example, liquor stocks plummeted after this year, and many investors failed to stop losses in time.

The main reason is that shareholders overestimate liquor, but ignore that no matter how strong the upward trend is, it will fall sooner or later; Market differences have led to a large loss of funds in liquor stocks.

What is the root cause of the stock crash? The stock price crash is generally driven by events or funds. Event-driven means that bad news causes the stock price to fall rapidly in a short time, often falling to the right position in a short time, and then rising in the callback; The capital drive is mainly due to the departure of some funds, which leads to the stock price falling. Generally, this situation is more likely to happen after the stock price rises to a certain extent, and the plunge caused by capital outflow will generally be greater and the time may be longer.

How to deal with the stock slump?

1, first check what kind of stock you hold. Look at the stocks you hold. If you rely on speculation and want to do short-term operations, you can run directly without fundamental support, leaving no investment value. Focus on those stocks with excellent fundamentals and good prospects in the later period, which can be safely held even if they plummet;

2. Read less relevant materials. Because reading it will only make you more sad, and if some stocks plummet not because of bad news but because of the main operation, they want you to throw away your chips, so you have to resist the pressure and analyze a wave first;

3. Raise funds. The market will not go up all the time, but it will not go down all the time, and the stocks that often plummet may be the opportunity to attack;

4. Find the target again. The market has always been there. As long as we find a good goal again, it is possible to make up for the previous losses;

5. Don't choose bargain hunting. The bottom copy is the past price of the stock. A little careless operation may be more and more laborious, and the stock bought after the plunge depends on the present or future value of the stock.

The first category is rational:

Friends who hold 20% or 30% positions and hold more than 70% cash have the best mentality. They will also feel a little pain in their hearts for the market crash, but this kind of pain will not hurt their bones. This little pain will make them more rational about the market, and they are glad that they have not locked all their funds in the stock market, otherwise the consequences will be unimaginable. For this kind of investor friends, the biggest question is-can you hold back the money? Buffett said: the bull market covers the stock, and the bear market covers the purse. As long as you can overcome your greed and successfully hold your purse, you are the biggest winner until the day when favorable policies come out.

The second is depression:

Friends who hold more than 70% stocks and less than 30% cash are the majority of the whole market. They failed to escape the attack of the market storm. They may cover all the way, make up all the way, make up all the points, make up all the points, and finally find that the bullets are running out and their mentality is close to collapse. These friends have a positive attitude and great courage, but they lack the understanding of the whole economic situation and the necessary knowledge of risk control. We should know that any market is independent of people's consciousness, and anyone may make a correct or wrong analysis of the market; If you do it right, you must sail before the wind. If you do something wrong, you must bravely admit your mistake and even break your wrist! For this kind of friends, it is urgent and necessary to learn the market operation rules of all countries in the world in the case of the stock market crash, and we can find today's strategies from the lessons of history. This can only be achieved by strengthening self-improvement and self-learning.

The third category is gambler type:

Man Cang's forever friend. At present, there are very few friends of this type in the whole market, maybe very few. There may be many reasons, but one thing is certain-these friends basically have no concept of the market, don't like their own analysis, and don't even listen to other suggestions. If you are absolutely profitable in Man Cang, this is understandable. If you absolutely lose money in Man Cang and don't want to stop loss, this mentality is just like driving in the stock market, never stepping on the brakes! You can imagine how dangerous it is for a friend who never brakes when driving! Therefore, the most important thing for such friends is to adjust their mentality, accept the reality, adjust their position reasonably and wait for a comeback. There is no need to fight the whole stock market. Our bodies are all flesh and blood, not stones. As the old saying goes, those who know the times are heroes; There is a saying in the stock that people who look at the general trend make a lot of money! These lessons must be firmly remembered.

The fourth category is acute:

Refers to some absolutely empty friends. It should be said that there will be many friends of this type at present, and some of them will look at the stock market with a joking attitude, hoping that the worse the stock market falls, the better; This is absolutely immoral. The other is still full of confidence in the stock market, always holding heavily, waiting for the bottom. This is the real warrior. Yes, risks fall out, opportunities rise out, the more the market falls, the greater the opportunities in the future, but we need to wait until we can seal our throats! This is indeed good luck for everyone to short, which deserves congratulations, but if short selling becomes numbness, timidity and even fear, it is not worth advocating. In China stock market, anything can happen. Every plunge is a redistribution of wealth. If you are short, you actually have the priority of wealth redistribution. What's next depends on your wisdom?

In the face of the continuous decline of stock price, we need to think about the problem from two angles.

1. What caused the stock price to keep falling?

Second, how to deal with the stock price decline?

Let's start with the first question.

The stock price decline is not terrible, but the continuous decline without knowing the reason is terrible.

The common reasons for the stock price decline are nothing more than the following.

1, the valuation is too expensive, and the market value cannot support the stock price;

2. The business situation of the enterprise has deteriorated;

3. Encounter unpredictable risk of black swan;

4. Significant changes have taken place in the development prospects of the industry (policy and technological progress);

5. Short-term performance is not up to expectations;

6. Shareholder reduction behavior and personnel changes;

7. Environmental changes in the investment market;

Who is the main cause and who is the accomplice? We take Dahua Co., Ltd. as a case and analyze them one by one.

1, is it the reason for overvaluation?

Whether the valuation is expensive or not depends on the development space of the industry, the growth speed and texture of the enterprise and the relative valuation of the industry.

This point does not need to be discussed in depth, and everyone in the research industry and company has his own opinion.

According to Dahua's share price, both dynamic and static are less than 20PE.

Dahua is neither a tracking stock nor a highly valued stock. The logic of a sudden collapse in valuation is untenable.

What are the coping strategies for the stock price crash?

★ What about stocks with a loss in P/E ratio?