Why do some stocks that are good fall when you buy them, and then start to rise again when you cut them?

In the process of investing in stocks, it is normal for the buying price to fall and the selling price to rise. Even for blue-chip stocks with excellent performance and good long-term trends, there may be relatively high prices in one trading day. There are obvious ups and downs. Except for the listing of new stocks and individual stocks with clear good and bad news, the trends of most stocks will fluctuate.

Therefore, the idea that buying will cause the price to fall, and cutting the flesh to cause the price to rise will arise. This is more due to the trading mentality of short-term investors. This short-term speculative goal magnifies the relationship between frequent trading and the rise and fall of stock prices. relationship. In addition, some other objective factors are also included. Chase high and buy, and there will be a callback demand for the target after buying.

The motivation for many investors to buy a stock is that the stock has performed well recently and has an obvious profit-making effect. The price of this type of stock has already experienced a substantial rise when investors come to know it, and there is pressure for a correction in the short term. Investors will have the feeling that the stock price will fall when they buy it. In fact, it is the result of chasing high.

Therefore, when judging the timing of buying, investors should pay more attention to the fundamentals of listed companies rather than paying attention to market enthusiasm and news. If they are considering it from the perspective of long-term investment, even after buying Don’t worry if the stock price falls back. Lack of confidence, sell low, and the stock price will rise after selling

The phenomenon of rising as soon as you sell mainly occurs in the bottom area of ????a bear market. After the stock market has experienced a long-term decline, investors will lack confidence and are eager to solve the problem. The psychology of getting out of the market. Institutional investors will be more patient and analytical than individual investors. When the market is down, institutional investors will choose some potential targets to build positions, and wash the market by smashing the market to get more chips before pulling up. .

In this case, whether it is out of fear that the stock price will fall again or out of the desire to sell immediately after finally getting out of the trap, investors will clear their positions, and the future stock market will have nothing to do with them. . In fact, for many stocks that have been silent for a long time, selling is not a bad thing. There may be a few days of rising after selling, but in the long run, more targets will still fall later.

Rather than being stuck in selling the stocks you have held too early, it is better to spend more time choosing new targets for investment. Changes in the fundamentals of the investment market cause prices to fall after buying and then rise after selling

Finally, when the market investment environment changes, it is particularly easy to buy to go down and sell to go up. In the atmosphere of sharp rise in the index, most investors have great enthusiasm for investment, and those who chase the rise are far greater than those who just accept the good news. Even if the bull market has ended and the market has fallen sharply for several days, most investors are more willing to buy "low" to achieve a short-term rise.

However, when the bull market turns into a bear market, the "low" that investors think of is actually just a small "ceiling", but investors often cannot see the trend clearly, thinking that it is still in the callback stage of the bull market. The next round of rebound. As a result, there are many cases where the price falls sharply after buying and the market becomes deeper and deeper. The opposite is true when a bear market turns into a bull market.

In general, in the process of investing in stocks, it is very normal to encounter the situation of "when you buy, it will fall, and when you sell, it will rise." No one can guarantee that you will buy at the lowest point and sell at the highest point. Point, prices are all relative. The individual trading mentality of individual investors determines most of the investment behavior. Institutional investors often take advantage of this to let individual investors take over the investment at a high level and cut off the profits at a low level, thereby enjoying huge profits for themselves.

Therefore, every investor should remember to establish his own investment philosophy and system when investing. No matter what the environment is, he should trust his own judgment, follow his own investment philosophy and take a long-term view. If you don't stick to short-term profits and losses, you will find that you did not sell at the lowest point or buy at the highest point. An investment that can make a profit can be called a success.